A.R.S. Services, Inc. v. Morse

31 Mass. L. Rptr. 227
CourtMassachusetts Superior Court
DecidedApril 5, 2013
DocketNo. MICV201300910
StatusPublished
Cited by1 cases

This text of 31 Mass. L. Rptr. 227 (A.R.S. Services, Inc. v. Morse) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A.R.S. Services, Inc. v. Morse, 31 Mass. L. Rptr. 227 (Mass. Ct. App. 2013).

Opinion

Leibensperger, Edward P., J.

The plaintiff A.R.S. Services, Inc. (“ARS”) commenced this action against its former employee Daniel Morse (“Morse”) and his current employer, 24 Restore NE, LLC (“24 Restore”) (together, “Defendants”), alleging harm arising out of Morse’s breach of a noncompetition agreement. The case is before this court on ARS’ motion for a preliminary injunction. ARS seeks an order enjoining Morse from engaging in the field of “disaster restoration” (as referenced in their agreement) within fifty miles of any ARS office, contacting ARS customers, subcontractors, and vendors for the purposes of soliciting business and services in competition with ARS, and otherwise using ARS contacts or confidential information in any manner. ARS also seeks to enjoin 24 Restore from employing Morse in the field of disaster restoration within fifty miles of any location in which ARS has an office. As will be described below, ARS’ motion is ALLOWED in part and DENIED in part.

BACKGROUND

ARS’ verified complaint and the affidavits the parties submitted reveal the following facts.

I. The Business of ARS

ARS provides emergency disaster restoration and reconstruction services for residential and commercial properties, such as cleaning, deodorizing, fire and smoke damage reconstruction, water damage reconstruction, mold remediation, biohazard cleanup, restoration, and renovation. Richard Piltch Affidavit, par. 2. ARS serves all of New England, and currently has offices in Auburn, Newton, South Yarmouth, and Springfield, Massachusetts; Hudson, New Hampshire; Pawtucket, Rhode Island; and North Haven, Connecticut. ARS obtains its business through “referrals from insurance adjusters in those situations where the insured does not have its own resources.” Daniel Morse Affidavit, par. 5. In these instances, “it is the insured that enters into a contract with ARS for services. The adjuster... cannot require that the insured hire ARS. Further, it is industry practice that the adjusters give their insureds at least 3 disaster restoration companies from which to choose.” Id. “Thus, while ARS may have relationships with some insurance adjusters, these adjusters have similar relationships with other disaster restoration companies and in fact recommend several at a time.” Id. According to ARS president Richard Piltch (“Piltch”), insurance adjusters and property managers are ARS’ “customers” because they generate business for ARS by calling ARS “to the sites of disasters . . . whereby ARS initiates its restoration work and they work with ARS throughout the restoration process.” Richard Piltch Affidavit, par. 3.

[229]*229II. Morse’s Employment at ARS

Morse had not worked in the field of disaster restoration until he started at ARS on November 1, 2004. “ARS put Morse through an extensive training program to prepare him for his role with [ARS].” Richard Piltch Affidavit, par. 5. Thereafter, throughout his time at ARS, and at ARS’ expense, Morse attended professional and industry association seminars and received specialized industry training in various areas. Piltch estimates that ARS “invested in excess of $250,000 in specialized trainings, certifications, dues and other professional development events for Morse.” Richard Piltch Affidavit, par. 9. “Any knowledge or experience Morse has in restoration and disaster recovery, business, sales and marketing these services comes from the specialized training he received from ARS.” Richard Piltch Affidavit, par. 5.

During his employment at ARS, “Morse regularly interacted with insurance adjusters, properly managers and subcontractors[;]” he “was intimately involved with the management of ARS and privy to detailed information concerning management of [ARS;]” and he “was charged with developing and maintaining business contacts.” Richard Piltch Affidavit, pars. 10-12. Specifically with respect to customer relations, “Morse entertained Customers at sporting events, dinners, and seminars!,] . . . [and] conducted seminars ... for [ARS] Customers at which he provided relevant education free of charge, creating an opportunity to develop business relationships on behalf of ARS.” Richard Piltch Affidavit, par. 12.

Morse held three positions over the course of his eight years at ARS. Morse’s first position at ARS was that of branch manager at ARS’ Pawtucket, Rhode Island office, and then, in March 2007, at ARS’ Newton, Massachusetts office.2 This position required him, inter alia, to create relationships with new contacts and potential clients by, for example, hosting and attending marketing events such as seminars and sporting events; to assist the general manager in writing the budget for that branch, and then to adhere to and monitor that budget; to monitor and be responsible for cash flow and invoicing; and to assist in the hiring of new employees and conducting training for new and current employees. Exhibit A to Richard Piltch Affidavit. Also, he spent 70% of his time working in the capacity of an “Outside Project Manager both in estimating and producing individual jobs.” Id.

In September 2008, ARS promoted Morse to general manager. Morse worked out of ARS’ Newton, Massachusetts office. In this position, Morse planned and managed restoration projects through completion; supervised and directed field crew workers; communicated work assignments to field supervisors and crews; performed field remodeling and restoration activities; communicated with customers regarding project details, expectations, and required paperwork and documentation; and supervised, maintained, and enforced safety procedures, policies, and standards in keeping with the applicable regulations. Exhibit B to Richard Piltch Affidavit.

Effective January 1, 2011, Morse became the director of operations, still working out of ARS’ Newton, Massachusetts office until October 22 through December 31, 2012, when he worked out of ARS’ South Yarmouth, Massachusetts office. ARS’ management team decided to move Morse to this position “because as [ARS] was rapidly growing, [it] needed a more experienced General Manager and [the management team] thought it would be a good fit for Morse to focus more on operations.” Richard Piltch Affidavit, par. 6. Morse views the assignment to director of operations to be a demotion. Daniel Morse Affidavit, par. 16.

This position required Morse to “report directly to the General Manager and... [to] be responsible for overseeing the daily functions and overall competency of Branch Personnel.” Exhibit C to Richard Piltch Affidavit. Morse met regularly with the general manager, the owner, and Piltch to discuss progress, to identify areas and strategies for improvement, and to set monthly goals. Id. He also communicated daily with the general manager “regarding all facets of business including profitability, forecasting, training, evaluations, hiring, and termination of employees.” Id. His other duties included visiting all branches on a weekly basis “to perform various reviews of practices” such as site visits; reviewing budgets with branch managers and outside project managers on a monthly, quarterly, and yearly basis; reviewing all jobs over $25,000; attending seminars; and developing and maintaining relationships in the insurance and property management industry. Id.

Within his affidavit, Piltch provided a chart detailing Morse’s salary for 2008 through 2012. During those five years, “Morse was one of the top five most highly-compensated employees at ARS.” Richard Piltch Affidavit, par. 7:

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Cite This Page — Counsel Stack

Bluebook (online)
31 Mass. L. Rptr. 227, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ars-services-inc-v-morse-masssuperct-2013.