Freedom Steel, Inc. v. Rorabaugh, 2007-L-087 (3-21-2008)

2008 Ohio 1330
CourtOhio Court of Appeals
DecidedMarch 21, 2008
DocketNo. 2007-L-087.
StatusPublished
Cited by1 cases

This text of 2008 Ohio 1330 (Freedom Steel, Inc. v. Rorabaugh, 2007-L-087 (3-21-2008)) 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
Freedom Steel, Inc. v. Rorabaugh, 2007-L-087 (3-21-2008), 2008 Ohio 1330 (Ohio Ct. App. 2008).

Opinion

OPINION
{¶ 1} Appellant, Freedom Steel, Inc., appeals from a final judgment of the Lake County Court of Common Pleas rendered in favor of appellee, Mark Rorabaugh, following a trial by jury. For the reasons discussed below, we affirm.

{¶ 2} For nearly 30 years, appellee was employed as a salesperson for Famous Enterprises ("Famous"); however, in 2004, appellee determined he found the direction Famous was taking undesirable and resigned. During his tenure at Famous, he became well-acquainted with Avery Schneider, a salesperson employed by appellant. *Page 2 Upon learning appellee intended on leaving Famous, Schneider helped arrange appellee to obtain a job interview with Tim Jacobs, appellant's owner and president.

{¶ 3} Jacobs and appellee met twice; at their first meeting, general issues were discussed including appellant's past employment with Famous. During their second meeting, more specific matters were broached. One important question Jacobs directed at appellee was whether, during his employment at Famous, he signed "a non-compete [agreement] or anything."1 Appellee responded in the negative. Although not disclosed to Jacobs, appellant had signed an employee handbook in February of 1998. Appellee testified he was aware of the handbook but deemed it unimportant because it was not a non-compete agreement.2

{¶ 4} Appellee was offered the job and, after accepting, he met with the owners of Famous, the Blaushilds. He did not disclose that he had accepted new employment. During the meeting, however, the Blaushilds advised appellee that if he intended to work for a competitor, they did not want him to call on any of Famous' customers. In response, appellant stated he did not have a non-compete agreement with them and, accordingly, he would do what he had to do to get a job. By way of rejoinder, the Blaushilds threatened him with a lawsuit. *Page 3

{¶ 5} Once appellee began working for appellant, he generated business by utilizing sales leads from appellant's internal connections as well as from his own contacts. Many of appellee's personal sales leads came from old contacts he knew while working at Famous. In March of 2005, appellee was served with a lawsuit filed by Famous in Summit County. In the complaint, Famous alleged violations of Ohio's Trade Secrets Act, interference with contractual business relations, conversion, and breach of contract. Shortly after being served, appellee notified Jacobs of the pending lawsuit. Jacobs questioned him again regarding whether he had signed anything "that would drag us into a lawsuit." Appellee again denied signing such a document insisting "I will prove it to you, and you're going to apologize to me * * *."

{¶ 6} In light of appellee's denials that he had signed neither a non-compete nor a trade secret agreement, Jacobs kept him under appellant's employ. Eventually, however, appellant was served with a subpoena from Famous seeking disclosure of what Jacobs considered "privileged information." According to Jacobs, the subpoena requested the names of "customers, where they are located, their addresses, who they are, what they buy, what you're selling them price wise, everything about the customers, it's an open book in other words." Appellant fought the subpoena by filing a motion for protective order; however, the trial court overruled the motion. The trial court rendered the ruling a final appealable order and appellant subsequently filed an appeal with the Ninth District Court of Appeals. Before the appeal was heard, appellee and Famous *Page 4 settled the lawsuit for $11,000.00 and the suit was dismissed with prejudice. As a result, appellant's appeal was rendered moot.

{¶ 7} On April 4, 2006, after the dismissal, appellant filed suit against appellee in the Lake County Court of Common Pleas alleging fraud. Appellant asserted appellee defrauded appellant by concealing relevant information regarding his past employment which caused it to expend over $18,000.00 in attorney's fees to defend against the subpoena issued by Famous in the Summit County case. Appellee attempted to change venue, which was denied, and, on July 7, 2006, filed its answer. In February of 2007, the matter proceeded to jury trial. After deliberating, the jury returned a verdict in appellee's favor. Afterwards, appellant moved the trial court for judgment notwithstanding the verdict, which was overruled.

{¶ 8} Appellant now appeals and alleges four assignments of error for our consideration. Its first assignment of error asserts:

{¶ 9} "The trial court erred in unilaterally providing a jury instruction that confused the issues before the jury and which was not supported by the facts or law of the case."

{¶ 10} Jury instructions are required to state the law completely and correctly; instructions that are misleading constitute reversible error.Groob v. KeyBank, 108 Ohio St.3d 348, 2006-Ohio-1189, at ¶ 32. "A charge to the jury should be a plain, distinct and unambiguous statement of the law as applicable to the case made before the jury by the proof adduced." Marshall v. Gibson (1985), 19 Ohio St.3d 10, 12, citingParmlee v. Adolph (1875), 28 Ohio St. 10, paragraph two of the syllabus. A trial court's determination as to whether the evidence produced at trial warrants a particular *Page 5 instruction is reviewed for an abuse of discretion. See Matheson v.Morog (Feb. 2, 2001), 6th Dist. No. E-00-017, 2001 Ohio App. LEXIS 325, *19. Therefore, "a party must demonstrate not merely that the trial court's omission or inclusion of a jury instruction was an error of law or judgment but that the court's attitude was unreasonable, arbitrary or unconscionable." Nails v. Perrin Asphalt, 9th Dist. No. 07CA0010-M,2007-Ohio-6147, at ¶ 10.

{¶ 11} According to appellant, the trial court sua sponte determined that the only issue in the case was whether appellee defrauded appellant by failing to disclose an agreement to which he was not bound. As a result, the trial court provided the following allegedly problematic instruction:

{¶ 12} "Plaintiff's Exhibit Number 1 which was the receipt of the Famous Enterprises Associates Handbook; Acknowledgment of Employment Relationship, has been admitted into evidence, but you may accept it only for a limited purpose.

{¶ 13} "The Court finds this document as a matter of law is not an enforceable non-compete agreement nor is it a valid trade secrets agreement.

{¶ 14} "In other words, the agreement does not bind the defendant to anything, it only acknowledges the receipt of the handbook and that the defendant is aware of his relationship with Famous Enterprises as an employee.

{¶ 15} "You may, however, consider the document as an agreement between the defendant and Famous Enterprises."

{¶ 16}

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Bluebook (online)
2008 Ohio 1330, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freedom-steel-inc-v-rorabaugh-2007-l-087-3-21-2008-ohioctapp-2008.