Douglas Sullinger v. Carol Sullinger

CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 22, 2021
Docket20-3498
StatusUnpublished

This text of Douglas Sullinger v. Carol Sullinger (Douglas Sullinger v. Carol Sullinger) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Douglas Sullinger v. Carol Sullinger, (6th Cir. 2021).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 21a0099n.06

Nos. 20-3445/3498

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

DOUGLAS SULLINGER, ) FILED ) Feb 22, 2021 Plaintiff, ) DEBORAH S. HUNT, Clerk ) CHRIS ANDREWS; WILLIAM SMITH; ) VENDITA TECHNOLOGY GROUP, INC., ) Plaintiffs-Appellants (20-3445), ) ON APPEAL FROM THE Defendants-Appellees (20-3498), ) UNITED STATES DISTRICT ) COURT FOR THE v. ) NORTHERN DISTRICT OF ) OHIO CAROL SULLINGER; VACS SOLUTIONS, LTD.; ) JOHN DOE, ) ) Defendants-Appellees (20-3445), ) Defendants-Appellants (20-3498). )

BEFORE: ROGERS, DONALD, and BUSH, Circuit Judges.

JOHN K. BUSH, Circuit Judge. Divorce is supposed to be the last word in a marriage, but

sometimes ex-spouses continue to fight. Such is the case here, where Vendita Technology Group,

Inc. (“VTG Inc.”), Chris Andrews, and William Smith appeal the district court’s orders granting

summary judgment to Carol Sullinger, VACS Solutions, Ltd. (“VACS”), and John Doe, as well as

an order granting in part Ms. Sullinger’s motion in limine. She, in turn, appeals the district court’s

partial denial of her motion to compel production of emails. The litigation stems from a dispute

that persisted after Carol and Douglas Sullinger’s divorce. Specifically, it arose from Ms.

Sullinger’s installation of clandestine cameras in the offices of a business that she and her ex-

husband owned together. Although a Plaintiff below, Mr. Sullinger does not appeal the summary No. 20-3445/3498, Sullinger v. Sullinger

judgment granted Ms. Sullinger on his claims. Nor does Ms. Sullinger appeal the summary

judgment granted Mr. Sullinger on her counterclaims. But their antagonism toward one another

continues through claims brought by VTG Inc. In addition, two of VTG Inc.’s employees have

claims related to the secretive video recording. For the following reasons, we affirm the district

court’s summary judgment in favor of Defendants and its order denying on mootness grounds Ms.

Sullinger’s motion to compel. We also dismiss the appeal related to Ms. Sullinger’s motion in

limine as moot.

I.

Carol and Douglas Sullinger co-owned a software-licensing company comprised of entities

including VTG Inc. and Vendita Technology Group, LLC (“VTG LLC”). She owned a 51% share

of VTG LLC and served as its Manager and CEO. He owned the remaining 49% of VTG LLC

and was the sole owner and president of VTG Inc. This business couple were also married. Aware

that her husband was about to file for divorce, Ms. Sullinger hired VACS to install an in-home

security system and another security system, including surveillance cameras, in the Vendita

offices.1 VACS placed six pinhole cameras and small microphones in the ceiling ductwork or light

fixtures in three offices; by the receptionist’s desk near a common area with a copy machine;

outside one office; and outside the conference room. The installation occurred after-hours during

the nights of March 10 and 11, 2015. Recording took place over two days before employees

discovered the cameras on or around March 13, 2015, the same day Mr. Sullinger filed for divorce.

The video recordings provided no footage of him but did capture conversations of at least two

employees, Chris Andrews and William Smith, recorded on March 12 and 13 in a common hallway

and in another employee’s office.

1 VTG Inc. and VTG LLC operated out of the same office space. The tenant listed on the lease was “Vendita Technology Group,” with no specification indicating VTG LLC or VTG Inc.

2 No. 20-3445/3498, Sullinger v. Sullinger

On March 10, 2017, while the divorce proceedings were still pending, Mr. Sullinger and

VTG Inc. sued Ms. Sullinger, VACS, and John Doe in the Lucas County Court of Common Pleas.

On the same day, three VTG employees—Clara Eckel, Chris Andrews, and William Smith—sued

the same Defendants in another case pending in the same court. Later, Eckel voluntarily dismissed

her claims, and Defendants removed both state cases to the U.S. District Court for the Northern

District of Ohio.

Separately, in the divorce proceedings, the Lucas County Court of Common Pleas,

Domestic Relations Division (the “divorce court”) entered its divorce decree on March 23, 2018.

The Sullingers had each alleged financial misconduct by the other during the divorce as grounds

for the unequal division of marital property. Ohio law provides that a divorce court may

“compensate [an] offended spouse with a distributive award or with a greater award of marital

property” in the event of the other spouse’s financial misconduct, which “includ[es], but [is] not

limited to, the dissipation, destruction, concealment, nondisclosure, or fraudulent disposition of

assets.” Ohio Rev. Code § 3105.171(E)(4). Among the allegations against Ms. Sullinger were

that she had engaged in the following acts of financial misconduct:

wiretapping and trespassing at the business in March of 2015; destruction of a business relationship between the Vendita Entities and Warnock, Tanner & Associates, Inc. (WTA) by relating the parties’ pending divorce to Roger Warnock; entering into an agreement with WTA in June 2015 to solicit business or otherwise usurp opportunities . . . ; interfering with WBENC certification . . . ; filing motion to disqualify legal counsel for the Vendita Entities and filing a counterclaim and joining legal counsel as a counter-defendant in a pending federal lawsuit; . . . filing a complaint against a notary public employed by VTG, Inc. . . . .

The divorce court held that Mr. Sullinger did not establish that Ms. Sullinger had committed

financial misconduct. It awarded all Vendita entities to him “free and clear of any interest of” Ms.

Sullinger and directed him to “pay any claims or debts of the Vendita Entities and . . . hold [Carol

Sullinger] harmless therefrom.” The Ohio Court of Appeals affirmed the divorce court’s finding

3 No. 20-3445/3498, Sullinger v. Sullinger

that Ms. Sullinger did not engage in financial misconduct. Sullinger v. Sullinger, No. L-18-1079,

2019 WL 1767020, at *14 –15 (Ohio Ct. App. April 19, 2019).

In federal district court, Defendants answered and Ms. Sullinger counterclaimed against

Mr. Sullinger and counter-defendant Kimberly Savich, the corporate attorney for the Vendita

entities. The allegations of the counterclaims stemmed largely from Mr. Sullinger and Ms.

Savich’s pursuit of criminal wiretapping charges against Ms. Sullinger: (1) abuse of process;

(2) tortious interference with contract; (3) falsification; and (4) breach of fiduciary duty and taking

of corporate opportunity (against only Mr. Sullinger). Ms. Sullinger later amended her answer and

counterclaim to substitute a claim for intentional infliction of emotional distress in place of her

falsification claim.

On November 15, 2017, Plaintiffs filed an amended complaint with the following

allegations: (1) violation of the Federal Wiretap Act, 18 U.S.C. § 2510; (2) invasion of privacy

and conspiracy to commit invasion of privacy; (3) violation of the Ohio Wiretap Act, Ohio Rev.

Code 2933.52 & 2933.65; (4) trespass (brought by Mr. Sullinger and VTG Inc.); (5) intentional

infliction of emotional distress (brought by Mr. Sullinger against Ms. Sullinger); (6) breach of

fiduciary duty (brought by Mr. Sullinger against Ms.

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