Caturano v. Armchem International Corp.

CourtDistrict Court, W.D. North Carolina
DecidedOctober 14, 2020
Docket1:20-cv-00173
StatusUnknown

This text of Caturano v. Armchem International Corp. (Caturano v. Armchem International Corp.) is published on Counsel Stack Legal Research, covering District Court, W.D. North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caturano v. Armchem International Corp., (W.D.N.C. 2020).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NORTH CAROLINA ASHEVILLE DIVISION 1:20-cv-00173-MOC-DCK

JOHN CATURANO, ) ) Plaintiff, ) ) v. ) ORDER ) ARMCHEM INTERNATIONAL CORP., ) ) Defendant. )

THIS MATTER is before the Court on Defendant’s Motion to Transfer Venue Pursuant to 28 U.S.C. § 1404(a), (Doc. No. 10). Having considered the motions and pleadings, the Court grants Defendant’s motion to transfer venue.1 I. BACKGROUND This is an employment contracts case. Plaintiff John Caturano is a citizen and resident of Buncombe County, North Carolina, and Defendant Armchem International Corporation (“Armchem”) is a Florida corporation with its principal place of business in Broward County, Florida. Armchem manufactures, sells, and distributes cleaning supplies, maintenance products, and safety products throughout the United States, including in North Carolina. In July 2016, Armchem and Caturano entered into discussions about Caturano working as a

1 Also pending is Plaintiff’s motion to dismiss Armchem’s counterclaims. Because the Court is transferring this action to the Southern District of Florida, the Court will not adjudicate Plaintiff’s pending motion, and the entire action, including the motion to dismiss, will be transferred.

-1- National Sales Manager for Armchem in North Carolina. In late July 2016, Caturano traveled to Armchem’s headquarters in Broward County, Florida, where the parties finalized Caturano’s employment terms. From July 2016 until his resignation in December 2019, Caturano worked as Armchem’s sales manager in North Carolina. The core of this dispute is the nature of the parties’ employment contract. The parties

disagree over whether a written employment agreement even exists and therefore whether a forum selection clause and noncompete agreement in that written contract are enforceable against Caturano. Armchem alleges that, during Caturano’s meeting at Armchem headquarters in 2016, Caturano signed an Employment Agreement (“Employment Agreement,”), and a Noncompetition, Nonsolicitation, and Confidentiality Agreement (“Noncompetition Agreement”). According to Armchem, Caturano initialed every page of both agreements. Furthermore, according to Armchem, Yanette Mantro, a Florida notary public, notarized the Noncompetition Agreement, and Nicole Marganelli, Armchem’s Human Resources Director, witnessed the signing of both agreements. Armchem has submitted a notarized version of the

Noncompetition Agreement that appears to bear Caturano’s signature, as well as the sworn declarations of both Ms. Mantro and Ms. Marganelli. (Doc. No. 11-2: Decl. of Yanette Mantro; Doc. No. 11-3: Decl. of Nicole Marganelli). Armchem has also submitted a sworn declaration of Armchem’s chief executive officer, Andrew Brahms, who states that he attended the July 2016 meeting and that all sales managers hired by Armchem, including Caturano, were required to sign the Noncompetition Agreement as a condition of employment with Armchem. (Doc. No. 11-4: Decl. of Andrew Brahms).

-2- The non-compete clause in the Noncompetition Agreement provides, in part, that the employee agrees: after termination or severance, whether for cause or no cause, from his or her position as an Employee of ARMCHEM for a period of two years not to compete, directly or indirectly, by engaging in a business or business venture which is identical, similar and/or substantially similar to the business of ARMCHEM within any territory or geographic region serviced by ARMCHEM, its employees or associates.

(Doc. No. 11-2 at p. 8: “Noncompetition, Nonsolicitation, and Confidentiality Agreement,” attached to Decl. of Yanette Mantro). The Noncompetition Agreement also includes choice of law and choice of venue provisions, stating: Governing Law and Venue. This Agreement shall be governed by and construed in accordance with the local laws of the State of Florida without reference to that state’s rules regarding choice of law. Any litigation arising hereunder shall be instituted, at the election of the Company, in the State or Federal Courts encompassing Broward County, Florida. All Parties agree that venue shall be proper in Broward County, Florida for all such legal or equitable proceedings.

(Id. at p. 10). Employee herein expressly acknowledges and consents to personal jurisdiction in Florida with respect to any and all disputes arising from this Agreement …. Employee further hereby recognizes and consents that in the event of breach of the Agreement, he or she will be haled into court in Florida, and that the Agreement is enforceable by Florida courts.

(Id. at p. 9). Caturano adamantly disagrees with Armchem’s factual claims. In fact, in his own sworn declaration, he denies signing any written agreements. (Doc. No. 16-1: Decl. of John Caturano). According to Caturano, he had previously worked for Armchem as a National Sales Manager from 2006 to 2015. In 2016 Armchem’s CEO Brahms contacted Caturano to see if he would

-3- return to work for Armchem as a National Sales Manager. Caturano asserts he told Brahms that, as a condition of returning to work for Armchem, he would agree to be employed only as an independent contractor paid through his sole proprietorship. He also asserts that he refused to sign a noncompete clause with Armchem, stating that “I was personally quite adamant that I would not [return to Armchem] if it involved my signing a non-competition agreement in favor

of Armchem.” (Doc. No. 16-1 at ¶ 11). Caturano asserts that, after he advised Brahms of these terms, he travelled to Armchem’s Florida headquarters to confirm their “handshake deal” without any written agreement. He asserts that he met with Armchem’s entire sales manager team on July 23, 2016. Caturano asserts that neither Marganelli nor Mantro attended the meeting, and he denies ever signing any written agreement. Specifically, he states in his sworn declaration, “At no time during this July 23, 2016, meeting did I sign an employment agreement with Armchem, or any type of contract containing a non-competition or other form of restrictive covenant.” (Id. at ¶ 21). Caturano asserts that he first saw the Noncompetition Agreement only after leaving the

company in 2019, but he asserts that the handwriting on the agreement is not his. (Id. at ¶ 23). In short, Caturano claims he never signed a non-competition agreement—or any other written agreement—related to his employment with Armchem. Shortly after resigning his position at Armchem, Caturano went to work as a sales manager for Momar, Inc., a direct competitor of Armchem. Armchem claims that Caturano has violated the terms of the disputed Noncompetition Agreement by, among other things, soliciting employees from Armchem to work for Momar and otherwise using confidential

-4- information he learned while at Armchem. Armchem sent Caturano a cease and desist letter dated May 12, 2020, accusing him of violating the Noncompetition Agreement. Caturano responded by filing an action for declaratory relief in the North Carolina Superior Court of Buncombe County on May 29, 2020, pursuant to N.C. GEN. STAT. § 1-253, in which he seeks a judgment that the

Noncompetition Agreement is “void and unenforceable as a matter of law” because: (1) when he agreed to work for Armchem, he agreed to do so through his sole proprietorship, and therefore he was not an Armchem employee; (2) Armchem never paid him—it only paid his sole proprietorship; (3) Caturano never signed the Noncompetition Agreement; and (4) the Noncompetition Agreement is, in any event, unenforceable as unduly onerous, overly broad, and violates the law and public policy of North Carolina. See (Doc. No. 1-1). Armchem removed the case to this Court on July 6, 2020, based on diversity jurisdiction under 28 U.S.C.

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Caturano v. Armchem International Corp., Counsel Stack Legal Research, https://law.counselstack.com/opinion/caturano-v-armchem-international-corp-ncwd-2020.