Crystal Valley Sales, Inc. v. Anderson

22 N.E.3d 646, 39 I.E.R. Cas. (BNA) 739, 2014 Ind. App. LEXIS 583, 2014 WL 6686620
CourtIndiana Court of Appeals
DecidedNovember 26, 2014
DocketNo. 20A04-1402-PL-83
StatusPublished
Cited by10 cases

This text of 22 N.E.3d 646 (Crystal Valley Sales, Inc. v. Anderson) 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
Crystal Valley Sales, Inc. v. Anderson, 22 N.E.3d 646, 39 I.E.R. Cas. (BNA) 739, 2014 Ind. App. LEXIS 583, 2014 WL 6686620 (Ind. Ct. App. 2014).

Opinion

OPINION

CRONE, Judge.

Case Summary

Crystal Valley Sales, Inc. (“Crystal Valley”) 1 appeals the trial court’s dismissal of its civil conspiracy claims against National Sales Company, Inc., Rodger Anderson, Cameo Manufacturing, Inc., and Norm Geible (collectively “Appellees”) for failure to state a claim.2 Crystal Valley contends that its amended complaint sufficiently states a claim against Appellees for civil conspiracy, and Appellees assert that a civil conspiracy allegation is insufficient absent an allegation of an underlying tort. Finding that Crystal Valley’s amended complaint failed to sufficiently allege an underlying tort against Appellees, we affirm.

Facts and Procedural History

The facts as alleged in Crystal Valley’s amended complaint are as follows:

10. Crystal Valley warehouses and sells a variety of products to various OEM [original equipment] manufacturers in Elkhart, Indiana, including RV manufacturers, manufactured-home builders, cargo-trailer dealers, and marine-craft fabricators.
11. Crystal Valley’s business is highly competitive without much product differentiation amongst competitors. As a result, Crystal Valley and its competitors rely significantly on the goodwill they generate through representative contact with their customers and suppliers and by keeping sensitive customer, supplier, and other business information confidential.
12. [Jonathan] Anderson began working for Crystal Valley in July 2002.
13. From July 2002 through June 30, 2007, J. Anderson served as .a sales manager for Crystal Valley.
14. From July 1, 2007 through February 15, 2013, J. Anderson was Crystal Valley’s Vice President and general Manager, and was also one of three shareholders in the company. J. Anderson is currently still an owner of Crystal Valley, holding a 5% percent [sic] interest in the company at all times since July 1, 2007.
[649]*64915. At all times since July 1, 2007, the remaining 95% of Crystal Valley has been owned by Charles Kline and Nancy Kline.
16. As Crystal Valley’s Vice President and General Manager, J. Anderson had contact with Crystal Valley’s customers in the OEM industry, including, but not limited to, Keystone RV (“Keystone”) and RV Surplus and Salvage, Inc. n/k/a RV Parts Nation (“RV Parts”).
17. For many of Crystal Valley’s customers, J. Anderson was Crystal Valley’s primary sales representative and frequently worked at the customer’s facility performing cycle-counting for the products that Crystal Valley sold to the customer.
18. Through his contacts with Crystal Valley’s customers, J. Anderson generated goodwill between Crystal Valley and its customers while working for, and receiving compensation from, Crystal Valley.
19. Through his contacts with Crystal Valley’s customers and also through his work as Crystal Valley’s Vice President and General Manager, J. Anderson also learned confidential information about Crystal Valley’s customers, including, but not limited to: contact information, product specifications, customer priority, buying patterns, rates of usage, payment history, and pricing information.
20. As Crystal Valley’s Vice President and General Manager, J. Anderson also had contact with Crystal Valley’s suppliers, including, but not limited to, Cameo Manufacturing, Inc. (“Cameo”).
21. Through his contacts with Crystal Valley’s suppliers, J. Anderson generated goodwill between Crystal Valley and its suppliers while working for, and receiving compensation from, Crystal Valley,
22. Through his contacts with Crystal Valley’s suppliers and also through his work as Crystal Valley’s Vice President and General Manager, J. Anderson also learned confidential information about Crystal Valley’s suppliers including, but not limited to: supplier identity, net-pricing information, profit margins, and credit terms.
The Employment Agreement
23. On July 1, 2007, Crystal Valley and J. Anderson entered into a Stock and Employment Agreement (the “Agreement”) ....
24. Section 5 of the Agreement (the “Non-competition Provision”) contains the following restrictive covenants against J. Anderson:
[Noncompete. During his employment and for one year thereafter, J. Anderson agrees not to engage directly or indirectly in competition with Crystal Valley by doing business or assisting another person or enterprise in soliciting any customer of Crystal Valley on behalf of another business or enterprise other than for Crystal Valley or by soliciting or placing orders with any of Crystal Valley’s suppliers for critical products purchased by Crystal Valley from that supplier for the preceding twelve months.]
[[Image here]]
While employed at Crystal Valley, J. Anderson diverted supplier Cameo to his dad’s company, National Sales
26. While still employed as Crystal Valley’s Vice President and General Manager, J. Anderson diverted one of Crystal Valley’s -critical suppliers, Cameo, to National Sales, for the pur[650]*650pose of competing against Crystal Valley.
[[Image here]]
28. From November 2007 through February 1, 2013, Crystal Valley warehoused and sold Cameo products to the OEM market in Elkhart, Indiana.
29. During the entire period of Cameo and Crystal Valley’s business relationship, J. Anderson was Crystal Valley’s primary contact with Cameo.
30. At all relevant times, J. Anderson’s primary contact at Cameo was Norm Geible.
31. Since 2008, Norm Geible has known that J. Andérson had a non-compete agreement with Crystal Valley.
32. During the time that Crystal Valley was distributing Cameo’s products, Norm Geible worked closely with J. Anderson.
33. During the time that Crystal Valley was distributing Cameo’s products, J. Anderson regularly advised Norm Geible and Cameo regarding improvements to Cameo products.
34. Norm Geible and Cameo relied on J. Anderson’s advice regarding improvements to Cameo products.
35. Norm Geible and Cameo valued J. Anderson’s input and advice regarding product developments and improvements.
36. Norm Geible and Cameo benefited from J. Anderson advising on new products form Cameo.
37. Through his relationship with Cameo, J. Anderson generated goodwill with Cameo on behalf of Crystal Valley, while working for, and being compensated by, Crystal Valley.
38. Through his relationship with Cameo, J. Anderson also learned confidential business information related to Cameo, including, but not limited to, net-pricing information, profit margins, and credit terms.
39. From 2007 through 2012, Crystal Valley’s sales of Cameo products steadily increased.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
22 N.E.3d 646, 39 I.E.R. Cas. (BNA) 739, 2014 Ind. App. LEXIS 583, 2014 WL 6686620, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crystal-valley-sales-inc-v-anderson-indctapp-2014.