Autonation, Inc. v. O'BRIEN

347 F. Supp. 2d 1299, 2004 U.S. Dist. LEXIS 25333, 2004 WL 2823122
CourtDistrict Court, S.D. Florida
DecidedDecember 2, 2004
Docket0460767CV
StatusPublished
Cited by15 cases

This text of 347 F. Supp. 2d 1299 (Autonation, Inc. v. O'BRIEN) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Autonation, Inc. v. O'BRIEN, 347 F. Supp. 2d 1299, 2004 U.S. Dist. LEXIS 25333, 2004 WL 2823122 (S.D. Fla. 2004).

Opinion

AMENDED ORDER GRANTING MOTION FOR PRELIMINARY INJUNCTION

DIMITROULEAS, District Judge.

THIS CAUSE is before the Court upon Plaintiffs Expedited Motion for Preliminary Injunction, filed herein on July 14, 2004 [DE-9], Defendant’s Response to Plaintiffs Motion, filed herein on July 20, 2004 [DE-17], and Plaintiffs Reply Memorandum in Support, filed herein on July 22, 2004 [DE-23]. After carefully considering the Motion, having heard the argument of counsel, and being otherwise fully advised in the premises, the Court finds as follows:

I. BACKGROUND

Plaintiff AutoNation, Inc. (“AutoNation”) is a Delaware corporation qualified to do business in the State of Florida, with its principal place of business in Fort Lauderdale, Florida. AutoNation owns more than 250 vehicle dealerships in 18 states and sells new and used vehicles built by 35 separate manufacturers. AutoNation is one of the leading automotive retailers in the used car industry.

Defendant James G. O’Brien, Jr. (“O’Brien”) is a citizen of North Carolina and is currently employed by Sonic Automotive (“Sonic”), a direct competitor of AutoNation. 1 On February 5, 2003, Auto-Nation hired O’Brien to work as a Manager of Used Vehicle Operations in its corporate headquarters in Fort Lauderdale, Florida. O’Brien’s salary was $100,000 per annum with a $50,000 signing bonus. The first half of O’Brien’s signing bonus was payable immediately and the second half was payable in twelve (12) months. Additionally, AutoNation provided the substantial relocation costs associated with O’Brien’s move from California to Florida.

As a Manager of Used Vehicle Operations, AutoNation claims O’Brien’s primary responsibilities included managing proposed policies, procedures, practices, and reports between and among AutoNation’s national districts and numerous dealerships. AutoNation claims that O’Brien had access to AutoNation’s financial and business-related analyses, research, forecasts, trends in sales, finance, overall business conditions, computer applications, procedures, and other systems designed for AutoNation’s used vehicle operations. Additionally, AutoNation claims that O’Brien had access to AutoNation’s 3-year Strategic Plan regarding its used vehicle operations. Accordingly, AutoNation states that a competitor, like Sonic, could use this information and gain an unfair competitive advantage in any market in which they both operate.

On February 5, 2003, and again on August 12, 2003, O’Brien signed non-compete agreements with AutoNation. 2 The perti *1303 nent language of O’Brien’s current Non-Compete Agreement with AutoNation states in relevant part:

Except where [ ] prohibited by applicable law, Associate [ ] agrees that he [ ] shall not during the period [] ending one year after the date that Associate’s employment or engagement with the Company is terminated (for any reason), directly or indirectly, [ ] engage in selling, leasing or servicing of any new or used vehicles [ ] anywhere in the United States.

(Plaintiffs Exhibit 1, ¶ 2(c))

However, O’Brien claims that shortly after his arrival, AutoNation’s used car division was significantly restructured. O’Brien states that Adam Simms, the employee who recruited O’Brien to work at AutoNation, was terminated in May of 2003. 3 O’Brien claims that despite promises to the contrary, he was never provided the opportunity to perform the functions of a manager working in the used car division of a large automotive retailer. O’Brien states that he only performed menial tasks (creating PowerPoint presentations) that would normally be assigned to a low level analyst.

O’Brien claims that due to growing frustrations with his responsibilities at Auto-Nation, he asked for a meeting with his immediate supervisor, Donna Parlapiano, the Vice President of Used Vehicles and O’Brien’s new supervisor after Simms’ termination. Although there is some disagreement on this issue, O’Brien was allegedly given the following opportunities: (1) remain in his current position; (2) resign his employment with AutoNation and accept a severance package; or (3) sell vehicles in one of AutoNation’s dealerships. Accordingly, for a few months, O’Brien sold cars at a Mercedes dealership in Fort Lauderdale, Florida. 4 However, O’Brien left AutoNation and began working in May of 2004 as a Used Car Manager for Sonic Automotive in North Carolina.

On June 14, 2004, AutoNation filed a Complaint for injunctive relief and damages alleging that O’Brien breached his Non-Compete Agreement with AutoNation by accepting employment with Sonic Automotive. On July 14, 2004, AutoNation filed the instant Motion for Preliminary Injunction asking the Court to enjoin O’Brien from working in direct competition with AutoNation.

II. DISCUSSION

In order to obtain a preliminary injunction, a plaintiff must establish the following four elements: (1) a substantial likelihood that the plaintiff will prevail on the merits; (2) a threat that the plaintiff will suffer irreparable injury if the injunction is not granted; (3) the threatened injury to the plaintiff outweighs the threatened harm the injunction may do to the *1304 defendant; and (4) granting the preliminary injunction will not disserve the public interest. Haitian Refugee Center, Inc. v. Nelson, 872 F.2d 1555, 1561-62 (11th Cir.1989). The plaintiff has the burden of persuasion as to each of these four elements. U.S. v. Jefferson County, 720 F.2d 1511, 1519 (11th Cir.1988). Although entering an injunction is within the discretion of the district court, it is an “extraordinary remedy” which should only be granted if the movant carries the burden of persuasion on its claims. Four Seasons Hotels and Resorts, B.V. v. Consorcio Barr, S.A., 320 F.3d 1205, 1210 (11th Cir.2003).

A. The Likelihood of Success on the Merits

Under Section 542.335 of the Florida Statutes, restrictive covenants are valid if the employer can prove: (1) the existence of one or more legitimate business interests justifying the restrictive covenant; and (2) that the contractually specified restraint is reasonably necessary to protect the established interests of the employer. North American Products Corp. v. Moore, 196 F.Supp.2d 1217, 1228 (M.D.Fla.2002). If the employer can establish its prima facie case, the burden shifts to the employee to show that the restriction is overbroad, overlong, or otherwise not reasonably necessary to protect the established interests of the employer. Fla. Stat. 542.335(l)(c). Additionally, when the employer establishes a legitimate business interest, irreparable injury must be presumed and the burden shifts to the employee to establish the absence of such injury. Fla. Stat. 542.335(1)(j); North American Products Corp.,

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Bluebook (online)
347 F. Supp. 2d 1299, 2004 U.S. Dist. LEXIS 25333, 2004 WL 2823122, Counsel Stack Legal Research, https://law.counselstack.com/opinion/autonation-inc-v-obrien-flsd-2004.