In re F.D. Johnson Co.

2018 Ohio 4803
CourtOhio Court of Appeals
DecidedDecember 3, 2018
Docket2018-L-009
StatusPublished
Cited by2 cases

This text of 2018 Ohio 4803 (In re F.D. Johnson Co.) 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
In re F.D. Johnson Co., 2018 Ohio 4803 (Ohio Ct. App. 2018).

Opinion

[Cite as In re F.D. Johnson Co., 2018-Ohio-4803.]

IN THE COURT OF APPEALS

ELEVENTH APPELLATE DISTRICT

LAKE COUNTY, OHIO

IN RE: THE F.D. JOHNSON COMPANY : OPINION

: CASE NO. 2018-L-009

Civil Appeal from the Lake County Court of Common Pleas, Case No. 2017 CV 002005.

Judgment: Reversed and judgment entered for appellant.

E. Mark Young, Roetzel & Andress, LPA, 1375 East Ninth Street, One Cleveland Center, 10th Floor, Cleveland, OH 44114 (For Appellee).

L. Bryan Carr, Carr, Feneli & Carbone Co., L.P.A., 1392 S.O.M. Center Road, Mayfield Heights, OH 44124 (For Appellant).

THOMAS R. WRIGHT, P.J.

{¶1} Appellant, JC Mechanical Heating & Cooling, LLC, appeals a decision

ordering it to provide discovery regarding potential violations of non-compete agreements

to appellee, The F.D. Johnson Company. Appellant contends that the order is improper

because appellee is not attempting to identify potential adverse parties for future litigation.

We reverse and enter judgment for appellant.

{¶2} Appellee is an Ohio company with its principal commercial facility in Twinsburg, Ohio. For approximately two years, it had a distributorship agreement with

Global Finishing Solutions, LLC (“GFS”), a Wisconsin entity. Pursuant to the agreement,

appellee built commercial paint booths for GFS clients located in Ohio. Appellee sub-

contracted some of the work to appellant, an Ohio company with its principal place of

business in Willoughby Hills, Ohio.

{¶3} GFS unilaterally terminated the distributorship agreement with appellee in

September 2017. Approximately ten months earlier, Robert Williams resigned his

position with appellee. One month after termination of the distributorship agreement,

David Scacchi resigned his employment with appellee. According to appellee, both

Williams and Scacchi are subject to agreements restricting them from soliciting its

customers or disclosing information about its business following separation.

{¶4} In October 2017, appellee’s president received an email from GFS

addressing GFS’s business dealings with appellant. The email also says that Scacchi

recently contacted GFS on appellant’s behalf. In response, appellee’s counsel sent

letters to Williams and Scacchi reminding them of the terms of the non-compete/non-

disclosure agreements. Neither responded.

{¶5} In conjunction with the letters to Williams and Scacchi, appellee’s counsel

sent a letter to appellant requesting information as to Scacchi’s employment status with

appellant and any pending business between appellant and GFS. In writing, appellant

denied having hired Scacchi, but did not address whether it had agreements with GFS.

{¶6} Since appellant’s response was inconsistent with the GFS email, appellee

filed a petition for pre-litigation discovery under Civ.R. 34(D). As the basis for its claim,

appellee stated that it had good reason to believe that GFS and appellant have entered

2 into a business agreement similar in nature to the distributorship agreement it previously

had with GFS. The petition further alleged that there was good reason to believe that one

or more of appellee’s former employees was either working for, in conjunction with, or for

the benefit of appellant. For relief, appellee sought an order requiring appellant to provide

all information or documents in its possession relating to Scacchi’s or Williams’ status as

employees or independent contractors for appellant or GFS, communications Scacchi or

Williams had with appellant or GFS during their employment with appellee, and

communications between appellant and GFS either before or after termination of

appellee’s distributorship agreement with GFS.

{¶7} Before the petition was served, the trial court rendered judgment in favor of

appellee, authorizing it to obtain discovery from appellant as to all categories of

documents or communications listed in the petition. Within ten days of service, appellant

moved for reconsideration. However, before any further proceedings could be held,

appellant instituted this appeal.

{¶8} As its sole assignment, appellant states:

{¶9} “The trial court erred in granting The F.D. Johnson Company’s petition for

discovery.”

{¶10} Rather than addressing appellant’s assignment, appellee argues that the

appeal should be dismissed as moot because it filed a separate civil action against

appellant and Scacchi, stating claims for, inter alia, tortious interference with a business

relationship. According to appellee, the trial court’s ruling should not be reviewed

because the “pre-suit discovery stage” between the parties has concluded.

{¶11} “A case is moot when there is no longer a matter in controversy or the

3 parties have no legally cognizable interest in the outcome.” State v. Schormuller, 11th

Dist. Lake No. 2012-L-124, 2013-Ohio-2043, ¶6. Mootness occurs when the requested

relief has already been obtained, the granting of relief would not serve any purpose, or

the court no longer has the authority to grant the relief. State v. Elersic, 11th Dist. Lake

No. 2001-L-130, 2002-Ohio-6696, ¶6, quoting Wilkins v. Wilkinson, 10th Dist. Franklin

No. 01AP-468, 2002 WL 47051, *4 (Jan. 15, 2002).

{¶12} As part of its separate action against appellant and Scacchi, appellee will

obviously be permitted to conduct discovery. Nevertheless, the judgment remains

enforceable regardless of the pendency of the subsequent action. Therefore, this appeal

is not moot.

{¶13} Appellant asserts the trial court erred in granting appellee’s discovery

request under Civ.R. 34(D) because appellee was seeking general information to support

its subsequent action regarding alleged interference with its ongoing business

relationship, not to identify potential defendants.

{¶14} Civ.R. 34(D) sets forth a distinct procedure for obtaining discovery prior to

instituting a civil action. The rule provides for the filing of a discovery petition by any

person who has a potential cause of action. Division (D)(1) delineates necessary steps

before filing the petition, the manner in which the petition shall be captioned, where the

petition must be filed, and what information must be stated in the petition. Division (D)(2)

governs service of the petition upon those from whom discovery is sought. As to the

scope of discovery, division (D)(3) provides:

{¶15} “(3) The court shall issue an order authorizing the petitioner to obtain the

requested discovery if the court finds all of the following:

4 {¶16} “(a) The discovery is necessary to ascertain the identity of a potential

adverse party;

{¶17} “(b) The petitioner is otherwise unable to bring the contemplated action;

{¶18} “(c) The petitioner made reasonable efforts to obtain voluntarily the

information from the person from whom the discovery is sought.”

{¶19} R.C. 2317.48 likewise delineates the procedure for bringing a discovery

action:

{¶20} “When a person claiming to have a cause of action or a defense to an action

commenced against him, without the discovery of a fact from the adverse party, is unable

to file his complaint or answer, he may bring an action for discovery, setting forth in his

complaint in the action for discovery the necessity and the grounds for the action, with

any interrogatories relating to the subject matter of the discovery that are necessary to

procure the discovery sought.

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2018 Ohio 4803, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-fd-johnson-co-ohioctapp-2018.