Box v. J.B. Hunt Transport, Inc.

2017 Ark. App. 605, 533 S.W.3d 603, 2017 Ark. App. LEXIS 687
CourtCourt of Appeals of Arkansas
DecidedNovember 8, 2017
DocketCV-17-207
StatusPublished
Cited by5 cases

This text of 2017 Ark. App. 605 (Box v. J.B. Hunt Transport, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Box v. J.B. Hunt Transport, Inc., 2017 Ark. App. 605, 533 S.W.3d 603, 2017 Ark. App. LEXIS 687 (Ark. Ct. App. 2017).

Opinion

KENNETH S. HIXSON, Judge

11 Appellant David Box, a former employee of appellee J.B. Hunt Transport (hereinafter “J.B. Hunt”), brings this interlocutory appeal from the trial court’s order granting J.B. Hunt’s motion for an injunction and temporary restraining order. 1 In the order, the trial court enjoined Box from disclosing confidential information and trade secrets to Hub Group, Inc. (hereinafter “Hub Group”), and from employment with Hub Group for a period of one year from Box’s separation from J.B. Hunt: The temporary order was based on three agreements containing confidentiality, noncompete, and restricted stock provisions executed between the parties during Box’s employment.

Box raises six arguments for reversal of the trial court’s order. Box argues that (X) the trial court erroneously relied on recitals in the agreements; (2) J.B, Hunt failed to prove unlikelihood of success of demonstrating that Box breached any agreement; (3) the trial court’s order made no findings that any agreement complied with Arkansas law; (4) the trial court erroneously applied Act 921 of ,2015 retroactively; (5) the trial court improperly awarded J.B. Hunt attorney’s fees and costs; and (6) the trial court made improper and premature rulings ih anticipation of a jury trial. We agree that the trial court erred in granting the preliminary injunction and temporary restraining order because J.B. Hunt failed to demonstrate a likelihood of success on the merits and the trial court made insufficient findings and conclusions to support the injunction and restraining order. Therefore, we reverse and remand.

As a threshold matter, we address J.B. Hunt’s motion to dismiss Box’s appeal, which was filed while the appeal was pending and passed until the case was submitted. In its motion to dismiss, J.B. Hunt asserts that it recently exercised its right in the court below to a voluntary 'dismissal of its underlying complaint against Box under Arkansas Rule of Civil Procedure 41(a). J.B. Hunt further asserts that the trial court entered an order dismissing its complaint without prejudice. J.B. Hunt argues that because its original claims have been dismissed without prejudice, the provisional remedy based on the claims, i.e,, the temporary restraining order and preliminary injunction, have been dissolved. That being so, J.B. Hunt- contends that this appeal is moot because any decision rendered would have no practical legal effect on an existing legal controversy.

As a general rule, appellate courts will not review issues that are moot. Allison v. Lee Cnty. Election Comm’n, 359 Ark. 388, 198 S.W.3d 113 (2004). Here, however, we cannot agree that the'order of dismissal referenced by-J.B, Hunt in its motion to dismiss rendered lathis appeal moot, At,the time the record was filed with our court, there had been no such order of dismissal entered, and it is therefore not part of the record. We will not consider a document not in the record. Potter v. City of Tontitown, 371 Ark. 200, 264 S.W.3d 473 (2007). Therefore, J.B. Hunt’s argument that the appeal should be dismissed because it dismissed its action pursuant to Arkansas Rule of Civil Procedure 41(a) is not before us.

We observe that, as an alternative reason to dismiss the appeal, J.B. Hunt asserts that the temporary restraining order expires by its terms on October 27, 2017, and that-this case was submitted to our court with oral arguments scheduled for October 25, 2017, making a5 decision prior to expiration of the temporary order practically impossible. However, we do not agree that the expiration of the temporary order moots our review of the order. In the order being appealed, the trial court awarded attorney’s fees and costs to J.B. Hunt, which is one of the issues Box raises on appeal. In addition, in the temporary restraining order the trial court ordered J.B. Hunt to post security in an amount sufficient to pay the damages sustained by Box should he be found to have been wrongfully enjoined or restrained. This provision in the trial court’s order is expressly authorized by Arkansas Rule of Civil Procedure 65(c). See also Ark. Code Ann. § 16-113-405(a)(1) (Repl. 2016). For these reasons, our decision in this case will likely have practical legal effects.

Finally, even were we to ágree that a decision rendered on appeal would not affect the rights of the parties to this appeal, we conclude that this appeal would fall under an exception to the mootness doctrine. One of the recognized exceptions to the mootness doctrine involves issues that are capable of repetition but that evade review. Poland v. Poland, 2017 Ark. App. 178, 518 S.W.3d 98. Any appeal from a temporary order restraining an ^employee from working for a competitor would likely evade review upon expiration of the temporary order before the appeal could be heard by the appellate court. Furthermore, one of the agreements upon which the trial court based its temporary restraining order and preliminary injunction provides that a violation of the agreement could trigger a two-year remedy and hence, J.B. Hunt could refile its motion and receive another temporary restraining order for another year without review. Therefore, the trial court’s action would evade review and the aggrieved party would not receive the appellate review to which it is entitled. For these reasons, we deny J.B. Hunt’s motion to dismiss and reach the merits of Box’s appeal.

The record shows that Box was employed by J.B. Hunt from 2000 until he resigned on October 27, 2016. From 2004 to 2011, Box was a regional operations manager in the intermodal division. 2 From 2011 until his separation from employment on October 27, 2016, Box worked as a director of transportation in J.B. Hunt’s integrated capacity solutions division in Memphis, Tennessee. Box’s job as a director of transportation was a brokerage position working with customers in a sales capacity. After leaving his employment with J.B. Hunt, Box accepted a position with another transportation company, Hub Group, as a regional vice president of operations in the Memphis region. This position was in Hub Group’s intermodal division.

On November 22, 2016, J.B. Hunt filed a complaint against Box for breach of contract related to the employment, alleging that by accepting employment with Hub | sGroup, Box had violated several agreements executed during his employment with J.B. Hunt. The first of these agreements was a Confidentiality Agreement signed by Box in 2004, which provided in pertinent part:

3. CONFIDENTIAL INFORMATION. Employee recognizes, acknowledges and agrees that- Company operates on a nationwide basis, and that, by ■reason of Employee’s employment with Company, Employee will acquire information concerning Company methods, processes, ■ operations, marketing programs, computer programs, future plans and customers, and other proprietary or otherwise sensitive information. This information (“Confidential Information”) is a valuable asset of Company and affects the1 successful operation of Company’s business. If known to Company’s suppliers, customers or competitors, such Confidential Information would give such parties a competitive advantage.
4. TRADE SECRETS.

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Bluebook (online)
2017 Ark. App. 605, 533 S.W.3d 603, 2017 Ark. App. LEXIS 687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/box-v-jb-hunt-transport-inc-arkctapp-2017.