Fine v. Communication Trends, Inc.

699 S.E.2d 623, 305 Ga. App. 298
CourtCourt of Appeals of Georgia
DecidedJuly 16, 2010
DocketA10A0408, A10A0409
StatusPublished
Cited by13 cases

This text of 699 S.E.2d 623 (Fine v. Communication Trends, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fine v. Communication Trends, Inc., 699 S.E.2d 623, 305 Ga. App. 298 (Ga. Ct. App. 2010).

Opinion

Bernes, Judge.

Communications Trends, Inc. (“CTI”) filed this lawsuit against its former employee, Lynette Fine, alleging claims for breach of a nonsolicitation covenant, breach of a nondisclosure covenant, violation of the Georgia Trade Secrets Act, and breach of a duty of loyalty. CTI also sued Fine’s current employer, Allscope Media, alleging claims for tortious interference with its business and contractual relationship with Fine. Fine and Allscope denied CTI’s allegations and filed a counterclaim alleging claims for defamation, libel and slander per se. 1 The parties filed cross-motions for summary judg *299 ment. The trial court granted both motions. 2 In these consolidated appeals, the parties challenge the trial court’s summary judgment decisions. In Case No. A10A0408, we affirm the entry of summary judgment in favor of CTI as to the counterclaim. In Case No. A10A0409, we affirm the entry of summary judgment in favor of Fine and Allscope as to CTI’s claims for breach of the restrictive covenants and tortious interference. 3 However, we reverse the grant of summary judgment as to CTI’s claim against Fine for breach of a duty of loyalty.

“Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. OCGA § 9-11-56 (c).” (Citation omitted.) Palombi v. Frito-Lay, 241 Ga. App. 154 (526 SE2d 375) (1999). On appeal from a grant of summary judgment, a de novo standard of review applies, and we view the evidence, and all reasonable conclusions and inferences drawn from it, in the light most favorable to the nonmovant. See id.

So viewed, the evidence shows that CTI is a business engaged in media planning, purchasing, and cable network programming. CTI’s major clients include several well-known cable television networks. In 1995, CTI hired Fine to serve as its media planner. Fine was subsequently promoted and became a corporate vice president at CTI. Fine was the main contact for CTI’s major clients, which allowed her to develop relationships with them. In the performance of her duties, Fine also had access to CTI’s client lists, client profiles, and media rates. In 1997, Fine executed a “Nondisclosure and Nonsolicitation Agreement” (collectively “the restrictive covenants”), which restricted her from disclosing any of CTI’s confidential information and trade secrets, and from soliciting any of CTI’s clients on behalf of a third party, throughout her employment and for a period of two years following the cessation of her employment.

In June 2005, Fine had a lunch meeting with the CEO of Allscope, a media competitor of CTI, and they began to discuss the possibility of Fine becoming employed with Allscope. Fine sent a projection of the amounts that she could potentially earn for Allscope based upon competitive research, her knowledge of the billing histories of CTI’s clients, and the assumption that some of the CTI clients would follow her if she were to become an Allscope employee. On October 27, 2005, Allscope gave Fine an offer of employment. *300 Fine accepted Allscope’s offer on October 31, 2005 and resigned from her employment from CTI on November 4, 2005.

Fine’s last day of employment at CTI was on November 15, 2005. CTI distributed an e-mail to all of its clients, informing them that Fine was no longer employed with its company and that another CTI employee would be handling their accounts.

On November 16, 2005, Fine attended a large cable industry dinner as an Allscope employee and provided her new Allscope business cards to various executives in attendance, including executives affiliated with CTI’s clients. Fine testified that she informed CTI’s clients that she was not allowed to solicit them and that they would have to provide a statement in writing that she had not done so in order to continue doing business with her at Allscope. Fine further testified that if CTI’s clients contacted her and sent e-mails stating that they had not been solicited, she accepted their business.

Fine’s client base at Allscope primarily consisted of former CTI clients. Allscope sent the former CTI clients holiday gifts, and Fine invited them to attend a brunch at her house.

CTI’s executives subsequently noticed that some of their major clients were no longer responding to their calls and requests for meetings. When CTI’s executives attempted to schedule meetings with certain clients, they were informed that the clients were going to be doing business with Fine at Allscope. CTI’s executives also noticed that some of their client files had been wiped out of the system and updated client contact information was missing. CTI received information that Fine had been contacting its clients and vendors on behalf of Allscope and had been making disparaging remarks about CTI to others. CTI lost client accounts that it had previously been servicing for 13 years.

CTI filed suit and obtained a temporary restraining order that prohibited Fine from taking any actions that would violate the restrictive covenants. CTI also sent a letter to certain of its valued clients and publication vendors that informed them of the lawsuit and temporary restraining order. In the letter, CTI expressed an intent to protect its client relationships and requested that its clients report any communications from Fine and Allscope which urged the termination of the relationship with CTI or gave any negative information about CTI.

Based upon CTI’s letter, Fine and Allscope filed a counterclaim in the lawsuit, alleging claims of defamation, libel, and slander per se. Contending that CTI’s letter had caused them to lose a project from one of CTI’s former clients, Fine and Allscope sought compensatory damages, punitive damages, attorney fees, and expenses of litigation.

The parties filed motions for summary judgment as to the claims *301 and counterclaims in the suit. The trial court granted summary judgment in favor of CTI as to the counterclaim. The trial court granted summary judgment in favor of Fine and Allscope as to CTI’s claims. These appeals ensued.

Case No. A10A0408

1. Fine and Allscope contend that the trial court erred in granting CTFs motion for summary judgment as to their claims for defamation and libel. 4 We discern no error.

(a) Fine and Allscope argue that the trial court’s determination of the motion for summary judgment was premature since the parties had not completed discovery. 5 Their counsel filed an affidavit under OCGA § 9-11-56 (f), 6 contending that further discovery from third parties was needed to address the claims in CTFs motion.

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

Related

Oskouei v. Matthews
912 S.E.2d 651 (Supreme Court of Georgia, 2025)
Zachary Matthews v. Armin Oskouei
Court of Appeals of Georgia, 2023
Worldpay, US, Inc. v. Haydon
N.D. Illinois, 2020
Neff v. McGee.
816 S.E.2d 486 (Court of Appeals of Georgia, 2018)
HCC Insurance Holdings, Inc. v. Flowers
237 F. Supp. 3d 1341 (N.D. Georgia, 2017)
The Tolson Firm, LLC v. Hezekiah Sistrunk, Jr.
789 S.E.2d 265 (Court of Appeals of Georgia, 2016)
Anthony Scott Brown v. State
Court of Appeals of Georgia, 2013
Fieldturf USA Inc. v. Tencate Thiolon Middle East, LLC
945 F. Supp. 2d 1379 (N.D. Georgia, 2013)
Whiteside v. Decker, Hallman, Barber & Briggs, P.C.
712 S.E.2d 87 (Court of Appeals of Georgia, 2011)
Chaney v. Harrison & Lynam, LLC
708 S.E.2d 672 (Court of Appeals of Georgia, 2011)
Gordon Document Products, Inc. v. Service Technologies, Inc.
708 S.E.2d 48 (Court of Appeals of Georgia, 2011)
Lightfoot v. Hollins
707 S.E.2d 491 (Court of Appeals of Georgia, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
699 S.E.2d 623, 305 Ga. App. 298, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fine-v-communication-trends-inc-gactapp-2010.