Intepros, Inc. v. Athy

31 Mass. L. Rptr. 144
CourtMassachusetts Superior Court
DecidedMay 5, 2013
DocketNo. MICV201300214F
StatusPublished
Cited by1 cases

This text of 31 Mass. L. Rptr. 144 (Intepros, Inc. v. Athy) is published on Counsel Stack Legal Research, covering Massachusetts Superior Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Intepros, Inc. v. Athy, 31 Mass. L. Rptr. 144 (Mass. Ct. App. 2013).

Opinion

Curran, Dennis J., J.

Intepros, Inc. sued Mr. Paul Athy and Ms. Anne Marie Canty for violating non-competition agreements signed in 1997 and 1998, respectively. The agreements, inter alia, prohibited Mr. Athy [145]*145and Ms. Canty from competing with Intepros, Inc.’s business of staffing and career servicing for one year and within a radius of 50 miles. Intepros now seeks to restrain and enjoin Mr. Athy and Ms. Canty because it alleges that in the fall of 2012, Mr. Athy started Power4 Career Services, LLC, and hired Ms. Canty, in order to compete with Intepros in violation of their agreement.

After reviewing the parties’ submissions and after a hearing, the plaintiffs motion for a preliminary injunction is DENIED for the following reasons.

BACKGROUND

Based upon the record before the Court at this early stage, the Court makes the following preliminaiy findings for the purpose of deciding this motion only.

Intepros, Inc. is a staffing and career servicing company of IT professionals. It hired Mr. Paul Athy, a defendant, around June 30, 1997; he signed an employment agreement about three years later on July 21, 1997; through the years, Intepros promoted Mr. Athy from branch manager, to regional vice president, and finally in March 2005, to its Chief Operating Officer. In this final position, Mr. Athy became “ultimately responsible for operations and profit/loss[es]” of the company. Verified Complaint ¶6. He left the company on August 17, 2012 after he submitted his two weeks’ notice and resignation as Chief Operating Officer. Mr. Athy said he was leaving Intepros to coach his son’s football team and after the season, would possibly create a company to assist recent college graduates in finding jobs.

Ms. Anne Marie Canty, a defendant, originally joined Intepros as a full-time recruiter on September 14, 1998. She signed her first employment agreement that same day. Intepros later fired Ms. Canty in 2002. But then five years later, Ms. Canty was rehired as a part-time employee and signed a new employment agreement on October 1,2007. Intepros fired her again in December of2008, but then hired her anew in April of 2010 as a part-time Director of Training. She did not sign a new employment agreement. She resigned from this last position on September 28, 2012 and left Intepros for the last time.

The employment agreements signed by both Mr. Athy and Ms. Canty (1997 and 2007, respectively) contained a non-competition covenant. 1 Under paragraph 8, both parties agreed not to compete with Intepros “for a period of twelve (12) months after termination of [e]mployee’s employment with the Company.” Plaintiffs Exhibits A and B. The covenant was enforceable “within a radius of fifty (50) miles from any office of the [c]ompany in which [e]mployee has worked, or over which [e]mployee has exercised any form of supervisory authority, during the one-year period preceding termination.” Plaintiffs Exhibits A and B. Under the agreement, a former employee could not solicit Intepros customers, hire current or former Intepros employees, or work for a recruiting firm or employment agency within the proscribed period and radius.

Beginning in December of 2012, Mr. Athy’s company, Power4 Career Services, LLC, contracted Staples, Inc., Power4s sole client, to recruit permanent employees for Staples’ e-commerce business. That same month, Ms. Canty joined Power4 as Director of Career Counseling, to assist with the Staples account.

The record discloses that Intepros became aware Mr. Athy and Ms. Canty were working as recruiters after it discovered on-line advertisements posted by them soliciting job candidates. Contrary to Mr. Athy’s representation that he would be coaching and working with recent college graduates, Power4 had many advertisements searching for experienced IT professionals for various positions. Ms. Canty’s name appeared on each advertisement. Upon further investigation, Intepros learned that Staples was a client of Power4, a company that Intepros was soliciting when Mr. Athy was Chief Operating Officer. Mr. Athy denies this assertion.

Intepros now seeks to enforce that portion of the contract Mr. Athy signed sixteen years ago when first hired as a branch manager, and Ms. Canty’s agreement some fifteen years ago before her unsyncopated relationship with Intepros began.

DISCUSSION

I. Introduction

“By definition, a preliminary injunction must be granted or denied after an abbreviated presentation of the facts and the law.” Packaging Indus. Group, Inc. v. Cheney, 380 Mass. 609, 616 (1980). As such, the Court has considered: (1) Intepros’s verified complaint; (2) its motion for temporary restraining order and preliminary injunction; (3) Intepros’s agreement with Mr. Athy; (4) Intepros’s agreement with Ms. Canty; (5) affidavit of John Kovalcik; (6) defendant’s opposition to plaintiffs motion; (7) defendant’s memorandum of law; (8) affidavit of Paul F. Athy, Jr.; (9) his second affidavit; and (10) the affidavit of Anne Marie Canly.

II. The Standard for Preliminary Injunctive Relief

For over three decades, the standard for preliminary injunctive relief has been set forth in Packaging Indus. Group, Inc., 380 Mass, at 616-22. An applicant for preliminary injunctive relief must demonstrate the moving party’s likelihood of success on the merits and a substantial risk of irreparable harm in the absence of preliminary injunctive assistance. Id. The moving party must also show that when balancing the harms, the moving party’s harm outweighs any possible risk of harm to the non-moving party. Id. “What matters as to each party is not the raw amount of irreparable harm the party might conceivably suffer, but rather the risk of such harm in light of the party’s chance of success on the merits. Only where the balance be[146]*146tween these risks cuts in favor of the moving party may a preliminary injunction properly issue.” Id. Additionally, “the significant remedy of a preliminary injunction should not be granted unless the plaintiff! 1 ha[s] made a clear showing of entitlement thereto.” Student No. 9 v. Board of Educ., 440 Mass. 752, 762 (2004); see also Landry v. Attorney General 429 Mass. 336, 343 (1999) (a preliminary injunction “should not be grant[ed] unless [the plaintiffs] by a clear showing, carried their burden of persuasion”).

III.Likelihood of Success on the Merits

A non-competition agreement is generally enforceable if it: (1) protects an employer’s legitimate business interest; (2) is supported by consideration; (3) is reasonable in time and space; and (4) is consonant with the public interest. All Stainless, Inc. v. Colby, 364 Mass. 773, 111-IS (1974); Novelty Bias Binding Co. v. Shevrin, 342 Mass. 714, 716 (1961). Under the facts presented here, Intepros cannot prove that the employment agreements signed by Mr. Athy and Ms. Canty were supported by further consideration upon their promotions.

IV.Consideration

An employer must demonstrate that a non-compete agreement is supported by consideration to be enforceable. See F.A. Bartlett Tree Expert Co. v. Barrington, 353 Mass. 585, 587-88 (1968); see also AFC Cable Sys. v. Clisham, 63F.Sup.2d 167, 173 (D.Mass. 1999). When an employee signs a non-competition agreement, the employer must provide some clear additional benefit. E.g., Marine Contractors Co. v. Hurley,

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Bluebook (online)
31 Mass. L. Rptr. 144, Counsel Stack Legal Research, https://law.counselstack.com/opinion/intepros-inc-v-athy-masssuperct-2013.