Baker v. Tremco Inc.

890 N.E.2d 73, 27 I.E.R. Cas. (BNA) 1722, 2008 Ind. App. LEXIS 1513, 2008 WL 2746511
CourtIndiana Court of Appeals
DecidedJuly 16, 2008
Docket29A02-0711-CV-1001
StatusPublished
Cited by6 cases

This text of 890 N.E.2d 73 (Baker v. Tremco Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baker v. Tremco Inc., 890 N.E.2d 73, 27 I.E.R. Cas. (BNA) 1722, 2008 Ind. App. LEXIS 1513, 2008 WL 2746511 (Ind. Ct. App. 2008).

Opinions

OPINION

BRADFORD, Judge.

Appellant/PlaintiffiCounterclaim Defendant Brennen Baker and Appellant/Third-Party Defendant Moisture Management appeal the trial court’s grant of partial summary judgment in favor of Appel-lees/Defendants/Counterclaim Plaintiffs/Third-Party Plaintiffs Tremco Incorporated and Rick Gibson. Baker and Moisture Management contend that the trial court erroneously granted summary judgment to Tremco and Gibson with respect to their claims that (1) Baker’s covenant not to compete with former employer Tremco is unenforceable, (2) Tremco tor-tiously interfered with Baker’s business activities, (3) Tremco wrongfully discharged Baker, (4) Gibson defamed Baker, and (5) Tremco violated Indiana’s blacklisting statute. We affirm in part, reverse in part, and remand with instructions.

FACTS AND PROCEDURAL HISTORY

Tremco manufactures and sells various products for the construction and maintenance of roofing systems. Weatherproofing Technologies Incorporated (“WTI”) is a wholly-owned subsidiary of Tremco’s, engaged in general contracting work, including the installation of roofing systems. On July 19, 1991, Baker and Tremco entered into a “Representative’s Agreement” (“the Agreement”), in which Tremco agreed to employ Baker to “sell and promote the sale of such [Tremco] products as may be assigned to him to sell, in such areas or to such accounts as may be assigned by [Tremco].” Appellees’ App. p. 32. Trem-co was identified in the Agreement as “the Company,” which was defined as “Tremco incorporated, its successors, and assigns!.]” Appellees’ App. 32.

The Agreement included, inter alia, a noncompete clause, which provides in relevant part as follows:

15. a. [Baker] agrees that in consideration of his employment and the investment by [Tremco] in his training, that during the term of his employment and for a period of 18 months after the [77]*77termination of his employment under this Agreement for any reason (such period not to include any period of violation or period of time required for litigation to enforce the covenants this paragraph 15), [Baker] will not directly or indirectly, for himself, or as an agent of employee of, or on behalf of or in conjunction with, any Person, or as a partner in any partnership, or as a shareholder, director or officer of any corporation, or otherwise:
i) in any business, for any purpose or in any place, employ or solicit for the purpose of employment any natural person employed by [Tremeo]; or
ii) compete with [Tremeo] in any aspect of any Applicable business in the areas in which the Applicable business is being conducted by [Baker] on the date of termination of [Baker’s] employment or in which it has been conducted by [Baker] during the 24 month period which precedes such termination date; or
iii) solicit or attempt to solicit any Applicable business, or accept any Applicable business, from any Customer.

Appellees’ App. p. 35. The Agreement defined “Applicable Business” as “any business being conducted by [Tremeo] at the date upon which [Baker’s] employment with [Tremeo] terminates or which [Trem-eo] has conducted within the 24 month period preceding such termination date.” Appellees’ App. p. 32.

During the course of Baker’s employment with Tremeo, he was trained in the promotion of goods and services through the Association of Educational Purchasing Agencies (which is an association of school systems that cooperatively purchased goods and services), in roof asset management programs, and in thermal imaging that would reveal areas of a roof in need of repair. Baker’s duties at Tremeo were to sell field inspection services, roof asset management services (including patch and repair services), and roofing supplies and products. Baker received commissions on sales of WTI services and Tremeo products.

On January 5, 2004, Baker resigned his position with Tremeo, due, according to his resignation letter, to “breaches in verbal agreements, and what [Baker felt had] been unethical behavior of Tremeo Sales Management^]” Appellees’ App. p. 37. In late 2004, Baker, who had formed Moisture Management, began contacting some of the same customers, in the same territory, that he had serviced while at Tremeo, providing roof consulting, waterproofing consulting, patch and repair services, and roof asset management services.

On November 23, 2004, after Tremeo sent Baker a cease-and-desist letter, he filed a complaint against Tremeo and Rick Gibson, his former supervisor, for declaratory judgment and money damages. Baker sought to have the noncompete clause declared unenforceable and sought damages for Tremco’s alleged tortious interference with his business, alleged violation of Indiana’s “blacklisting” statute, and alleged breach of the Agreement by Trem-eo.1 Tremeo counter-sued Baker and brought in third-party defendant Moisture Management, alleging breach of the Agreement by Baker, tortious interference by Moisture Management, and a trade secrets violation by Baker.

[78]*78Tremco and Gibson filed a motion for partial summary judgment, contending that no genuine issue of material fact remained with respect to Baker’s claim against Tremco that the noncompete clause was unenforceable, Baker’s defamation claim against Gibson, and Baker’s claims against Tremco of tortious interference, blacklisting, and wrongful discharge. On May 17, 2007, the trial court granted summary judgment in favor of Tremco and Gibson, concluding that “Judgment is hereby entered in favor of [Tremco and Gibson] and against Baker on all claims alleged in Baker’s Complaint, and Baker shall have and recover nothing from [Tremco and Gibson].” Appellants’ App. p. 695.

DISCUSSION AND DECISION

Standard of Review

When reviewing the grant or denial of a summary judgment motion, we apply the same standard as the trial court. Merchants Nat’l Bank v. Simrell’s Sports Bar & Grill, Inc., 741 N.E.2d 383, 386 (Ind.Ct.App.2000). Summary judgment is appropriate only where the evidence shows there is no genuine issue of material fact and the moving party is entitled to a judgment as a matter of law. Id.; Ind. Trial Rule 56(C). All facts and reasonable inferences drawn from those facts are construed in favor of the nonmoving party. Id. To prevail on a motion for summary judgment, a party must demonstrate that the undisputed material facts negate at least one element of the other party’s claim. Id. Once the moving party has met this burden with' a prima facie showing, the burden shifts to the nonmoving party to establish that a genuine issue does in fact exist. Id. The party appealing the summary judgment bears the burden of persuading us that the trial court erred. Id.

I. Covenant Not to Compete

Baker contends, inter alia, that he did not violate the covenant not to compete with Tremco because he completed only with Tremco’s subsidiary WTI, not with Tremco itself. As an initial matter, the Agreement provides that it “shall be governed by the internal laws of the State of Ohio.” Appellants’ App. p. 641. Ohio courts have established that “restrictive covenants not to compete are disfavored by law.” Clark v. Mt. Carmel Health, 124 Ohio App.3d 308, 706 N.E.2d 336, 340 (1997).

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Baker v. Tremco Inc.
890 N.E.2d 73 (Indiana Court of Appeals, 2008)

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890 N.E.2d 73, 27 I.E.R. Cas. (BNA) 1722, 2008 Ind. App. LEXIS 1513, 2008 WL 2746511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baker-v-tremco-inc-indctapp-2008.