Engineering Excellence v. Meola, Unpublished Decision (10-8-2002)

CourtOhio Court of Appeals
DecidedOctober 8, 2002
DocketNo. 01AP-1342 (REGULAR CALENDAR)
StatusUnpublished

This text of Engineering Excellence v. Meola, Unpublished Decision (10-8-2002) (Engineering Excellence v. Meola, Unpublished Decision (10-8-2002)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Engineering Excellence v. Meola, Unpublished Decision (10-8-2002), (Ohio Ct. App. 2002).

Opinion

OPINION
{¶ 1} Plaintiff-appellant, Engineering Excellence, Inc., appeals from the judgment of the Franklin County Court of Common Pleas granting summary judgment in favor of defendant-appellee, Dave Meola. For the following reasons, we affirm in part and reverse in part and remand.

{¶ 2} Appellant's business includes the servicing, installing and maintaining of commercial and industrial heating, ventilation and air conditioning ("HVAC") systems. On June 10, 1994, appellant hired appellee as an HVAC service technician. During appellee's employment with appellant, he serviced a number of HVAC systems in Columbus, Ohio.

{¶ 3} On the first day of appellee's employment, appellee signed an "Employment, Confidentiality and Non-Competition Agreement" (hereinafter "employment agreement"). This employment agreement prohibited appellee from disclosing appellant's confidential information "to any third party or use such information for the benefit of any third party." Additionally, the employment agreement contained a provision entitled "Agreement Not to Compete," in which appellee agreed that, during his employment and for a period of two years after the termination of his employment, he would not "either directly or indirectly * * * engage in any business which is competitive with the business of Company within a fifty (50) mile radius of Cincinnati, Ohio." The employment agreement also contained a provision entitled "Non-Solicitation," which stated that:

{¶ 4} "During the term of Employee's employment with Company and for a period of two (2) years following termination of Employee's employment with Company for any reason, Employee agrees that Employee will not, either directly or indirectly, solicit or accept business of the type then being conducted by Company from, or provide sales or service of heating, ventilating, and/or air conditioning equipment to any person, partnership, corporation, or other entity who is then a customer of Company or who was a customer of Company during the twenty-four (24) month period immediately prior thereto. Employee further agrees that, during the term of Employee's employment with Company and for a period of two (2) years following the termination of Employee's employment with Company for any reason, Employee will not, directly or indirectly, attempt to cause any person, partnership, corporation, or other entity who is then a customer of Company or who was customer of Company during the twenty-four (24) month period immediately prior thereto to divert such customer's business away from Company to any other person or entity * * *."

{¶ 5} Appellee quit his employment with appellant on February 13, 2001, and subsequently began working as an HVAC service technician for Bruner Corporation ("Bruner"), one of appellant's direct competitors in the Columbus market. As an employee for Bruner, appellee has serviced the HVAC systems of four of appellant's former customers, including those systems located at the Cascade Complex, Paradigm Properties, the Forum at Knightsbridge, and the Forum at Knightsbridge II — all of which are located in the Columbus area. Appellee also serviced each of these HVAC systems while employed by appellant.

{¶ 6} Although the four former customers transferred their business to Bruner around the time appellee was hired by Bruner, representatives of each of the former customers testified that appellee had not solicited their business. Further, appellee testified that he never divulged the identity of appellant's customers to Bruner employees.

{¶ 7} On July 13, 2001, appellant filed suit against appellee, alleging two causes of action: (1) appellee breached the employment agreement; and (2) appellee misappropriated appellant's trade secrets in violation of R.C. 1333.61, et seq. Appellant also requested the trial court enjoin appellee from disclosing confidential information and trade secrets, and from soliciting or servicing the HVAC systems of appellant's present or former customers for two years. After a hearing, the trial court determined that appellant failed to establish that it was entitled to a temporary restraining order and, therefore, denied the same.

{¶ 8} On July 26, 2001, appellee filed a motion for summary judgment, arguing that the employment agreement was unenforceable, and that appellant could not establish that appellee misappropriated any of appellant's trade secrets. Appellant responded with a motion for partial summary judgment, asserting that there were no questions of material fact as to its claim that appellee had breached the employment agreement and, thus, that it was entitled to judgment as a matter of law on that claim. Finding merit in appellee's arguments, the trial court granted his motion for summary judgment and denied appellant's motion for partial summary judgment.

{¶ 9} On appeal, appellant assigns the following error:

{¶ 10} "The Trial Court Erred To The Prejudice Of The Plaintiff-Appellant As A Matter Of Law In Failing to Enforce the Restrictive Covenant Entered into by Defendant-Appellee and thereby Denying Plaintiff-Appellant's Motion For Temporary Restraining Order And Preliminary Injunction And Motion for Partial Summary Judgment And In Granting Defendant-Appellee's Motion for Summary Judgment And Motion To Reconsider Court's Decision Allowing Count Two Of The Complaint To Remain."

{¶ 11} Appellate review of summary judgment motions is de novo. Helton v. Scioto Cty. Bd. Of Commrs. (1997), 123 Ohio App.3d 158, 162. "When reviewing a trial court's ruling on summary judgment, the court of appeals conducts an independent review of the record and stands in the shoes of the trial court." Mergenthal v. Star Banc Corp. (1997),122 Ohio App.3d 100, 103. Civ.R. 56(C) provides that summary judgment may be granted when the moving party demonstrates that: (1) there is no genuine issue of material fact; (2) the moving party is entitled to judgment as a matter of law; and (3) reasonable minds can come to but one conclusion and that conclusion is adverse to the party against whom the motion for summary judgment is made. State ex rel. Grady v. State Emp. Relations Bd. (1997), 78 Ohio St.3d 181, 183.

{¶ 12} When a party seeks summary judgment on the ground that the non-moving party cannot prove its case, the moving party bears the initial burden of informing the trial court of the basis for its motion, and identifying those portions of the record that demonstrate the absence of a genuine issue of material fact on the essential elements of the non-moving party's claims. Dresher v. Burt (1996), 75 Ohio St.3d 280,293. After the moving party has satisfied this initial burden, the non-moving party has a reciprocal duty to set forth specific facts showing that there is a genuine issue of material fact and, if the non-moving party does not so respond, summary judgment should be entered for the moving party. Id.

{¶ 13} We will first address appellant's claim that appellee misappropriated appellant's trade secrets in violation of R.C. 1333.61, et seq. In pertinent part, R.C. 1333.61 reads:

{¶ 14} "(B) `Misappropriation' means any of the following:

"* * *

{¶ 15} "(2) Disclosure or use of a trade secret of another without the express or implied consent of the other person by a person who did any of the following:

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Bluebook (online)
Engineering Excellence v. Meola, Unpublished Decision (10-8-2002), Counsel Stack Legal Research, https://law.counselstack.com/opinion/engineering-excellence-v-meola-unpublished-decision-10-8-2002-ohioctapp-2002.