Geloff v. R.C. Hemm's Glass Shops, Inc.

2021 Ohio 394, 167 N.E.3d 1095
CourtOhio Court of Appeals
DecidedFebruary 12, 2021
Docket2020-CA-5
StatusPublished
Cited by18 cases

This text of 2021 Ohio 394 (Geloff v. R.C. Hemm's Glass Shops, Inc.) 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
Geloff v. R.C. Hemm's Glass Shops, Inc., 2021 Ohio 394, 167 N.E.3d 1095 (Ohio Ct. App. 2021).

Opinion

[Cite as Geloff v. R.C. Hemm's Glass Shops, Inc., 2021-Ohio-394.]

IN THE COURT OF APPEALS OF OHIO SECOND APPELLATE DISTRICT MIAMI COUNTY

JUSTIN GELOFF : : Plaintiff-Appellee : Appellate Case No. 2020-CA-5 : v. : Trial Court Case No. 2019-CV-290 : R.C. HEMM’S GLASS SHOPS, INC. : (Civil Appeal from : Common Pleas Court) Defendant-Appellant : :

...........

OPINION

Rendered on the 12th day of February, 2021.

MARILYN L. WIDMAN, Atty. Reg. No. 0068446 and KERA L. PAOFF, Atty. Reg. No. 0082674, 405 Madison Avenue, Suite 1550, Toledo, Ohio 43604 Attorneys for Plaintiff-Appellee

ANDREW R. PRATT, Atty. Reg. No. 0063764 and KEVIN M. DARNELL, Atty. Reg. No. 0095952, 18 East Water Street, Troy, Ohio 45373 Attorneys for Defendant-Appellant

.............

TUCKER, P.J. -2-

{¶ 1} Defendant-appellant, R.C. Hemm’s Glass Shops, Inc. (“Hemm’s Glass”),

appeals from the trial court’s judgment of May 5, 2020, in which the court granted

judgment pursuant to Civ.R. 56 in favor of Plaintiff-appellee, Justin Geloff, on his

complaint for declaratory judgment; in his complaint, Geloff sought a declaration that a

non-competition and non-disclosure agreement, which he executed while an employee

of Hemm’s Glass, was unenforceable. Raising two assignments of error, Hemm’s Glass

argues, first, that the trial court contravened Civ.R. 56 by entering judgment despite

genuinely disputed issues of material fact, and second, that the court erred as a matter

of law by failing to reform the parties’ agreement. We find that Hemm’s Glass’s

arguments are not well taken, and for the following reasons, the trial court’s judgment is

affirmed.

I. Facts and Procedural History

{¶ 2} Hemm’s Glass hired Geloff on or about April 20, 2015, to be a field glazier.

Affidavit of Justin Geloff ¶ 1 and 3-4, Jan. 3, 2020.1 Geloff executed a non-competition

and non-disclosure agreement on or about the same date he was hired. Id. at ¶ 7 and

Ex. B.

{¶ 3} As a field glazier, Geloff installed glass doors and windows, along with other

glass products. Id. at ¶ 3. Geloff thus had contact with customers of Hemm’s Glass in

the course of his work. Id. at ¶ 15; Affidavit of Jeffrey C. Hemm ¶ 4-5, Feb. 7, 2020.2

1 Geloff attached his affidavit as Exhibit “1” to his motion for summary judgment of January 17, 2020. 2Hemm’s Glass attached Jeffrey Hemm’s affidavit to its memorandum in opposition to Geloff’s motion for summary judgment, which it filed on February 10, 2020. -3-

{¶ 4} In January 2019, Hemm’s Glass offered Geloff a promotion to foreman.

Geloff accepted the promotion on or about January 16, 2019. On or about the same

date, he executed a second non-competition and non-disclosure agreement (the

“Agreement”). Geloff Aff. ¶ 7 and Ex. C. The second agreement was identical to the

first. Id. at Exs. B and C.

{¶ 5} Among other things, the non-competition provisions of each of the

agreements restricted Geloff, “[d]uring the term of [his] employment and for a period of

two * * * years following the termination of [his] employment,” from “participat[ing] * * * as

an * * * employee [in] any business within the [s]tates of Ohio, Kentucky, Michigan,

Indiana, Pennsylvania or West Virginia which is engaged in * * * the business of [Hemm’s

Glass], including, but not limited to, the sale of glass or mirror products and any and all

related services”; from soliciting Hemm’s Glass’s customers on behalf of any subsequent

employer “for the purpose of providing goods and/or services which are competitive with

the goods and or services” provided by Hemm’s Glass; and from [d]isclosing to any firm,

corporation or individual, the name or financial information of the present or past

customers” of Hemm’s Glass. See Decision and Judgment Entry Sustaining Plaintiff’s

Motion for Summary Judgment 2-3, May 5, 2020 [hereinafter Judgment Entry]; Complaint

¶ 10 and Ex. B. The non-disclosure provisions of the Agreement, which did not include

temporal or geographical limitations, restricted Geloff from “[d]isclos[ing] confidential

information of any type or description”; and from “[r]etain[ing] without the prior written

approval of [Hemm’s Glass], any customer list or other confidential information of any

type or description.” Judgment Entry 3-4; Complaint, Ex. B.

{¶ 6} Geloff ended his employment with Hemm’s Glass on June 7, 2019, and -4-

joined Glaziers Local Union No. 387, which is an affiliate of the International Union of

Painters and Allied Trades, District Council 6. Id. at ¶ 22. American Architectural Glass

hired Geloff to be a field glazier on June 10, 2019, but shortly afterward, Geloff and his

new employer each received a letter from Hemm’s Glass threatening litigation pursuant

to the non-competition and non-disclosure agreement that he had executed on January

16, 2019 Agreement. Id. at ¶ 25 and Ex. D.

{¶ 7} On July 1, 2019, Geloff filed a complaint against Hemm’s Glass in which he

requested that the trial court enter a judgment declaring the Agreement to be

unenforceable. American Architectural Glass terminated Geloff’s employment on July

17, 2019, leaving Geloff unemployed for four weeks. Geloff Aff. ¶ 26-27.

{¶ 8} Hemm’s Glass filed an answer and counterclaim on July 30, 2019, asserting

causes of action for declaratory judgment and breach of contract. Geloff moved to

dismiss the counterclaim, and on November 21, 2019, the trial court sustained Geloff’s

motion in part and overruled his motion in part. The court sustained the motion to the

extent that Hemm’s Glass’s causes of action “pertain[ed] to * * * Geloff’s alleged violation

of the non-competition provision[s] of the Agreement,” and the court overruled the motion

to the extent that Hemm’s Glass’s causes of action “pertain[ed] to * * * Geloff’s alleged

violation of the non-disclosure provision[s] of the Agreement.” Decision and Judgment

Entry Sustaining in Part and Overruling in Part Plaintiff’s Motion to Dismiss 8, Nov. 21,

2019.

{¶ 9} According to the counterclaim, after Geloff terminated his employment with

Hemm’s Glass, he later found employment “with a corporation engaged in the sale of

glass or mirror products and other related services in direct violation of the terms of the -5-

Agreement.” In its decision on Geloff’s motion to dismiss, the court explained that

because Hemm’s Glass neither alleged “the location of Geloff’s subsequent employer,”

nor incorporated the allegations in Geloff’s complaint—which did state the location of at

least one of Geloff’s subsequent employers—Hemm’s Glass had failed to state a claim

against Geloff for violating the non-competition provisions of the Agreement, given that

the Agreement’s terms applied only to employers in Ohio and five other states. Id. at 4-

5. The court held that counterclaim did suffice with respect to Geloff’s alleged violations

of the non-disclosure provisions of the Agreement, because the non-disclosure provisions

were not limited to any specific location. Id. at 5.

{¶ 10} Geloff thereafter moved for summary judgment. On May 5, 2020, the trial

court entered judgment in his favor. Hemm’s Glass timely filed a notice of appeal to this

court on May 15, 2020.

II. Analysis

{¶ 11} For its first assignment of error, Hemm’s Glass contends that:

THE TRIAL COURT INCORRECTLY DECIDED THERE WERE NO

GENUINE ISSUES OF MATERIAL FACT.

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2021 Ohio 394, 167 N.E.3d 1095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/geloff-v-rc-hemms-glass-shops-inc-ohioctapp-2021.