Jones v. Hamilton

53 So. 3d 134, 2010 Ala. Civ. App. LEXIS 23, 2010 WL 245584
CourtCourt of Civil Appeals of Alabama
DecidedJanuary 22, 2010
Docket2081077
StatusPublished
Cited by3 cases

This text of 53 So. 3d 134 (Jones v. Hamilton) is published on Counsel Stack Legal Research, covering Court of Civil Appeals of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Jones v. Hamilton, 53 So. 3d 134, 2010 Ala. Civ. App. LEXIS 23, 2010 WL 245584 (Ala. Ct. App. 2010).

Opinion

THOMAS, Judge.

In May 2008, William L. Jones, Carbon Processing and Reclamation, LLC (“CPR”), and Mid-West Energy, Inc. (“Mid-West”) (CPR and Mid-West are hereinafter collectively referred to at times as “the companies”), sued Peggy Hamilton, alleging that Hamilton, a former employee of the companies and a former majority stockholder of CPR, had violated a confidentiality agreement contained in a 2007 settlement agreement between Hamilton, Jones, and the companies; that Hamilton had violated the Alabama Trade Secrets Act (“the ATSA”), codified at Ala.Code 1975,. § 8-27-1 et seq.; that Hamilton had breached a fiduciary duty to Jones and the companies; and that Hamilton had invaded the privacy of Jones and the companies. Hamilton filed a motion for a summary judgment, and, after considering a response by Jones and the companies and conducting a hearing on the motion, the trial court entered a summary judgment in favor of Hamilton. Jones and the companies appealed to the Alabama Supreme Court, which transferred the appeal to this court, pursuant to Ala.Code 1975, § 12-2-7(6).

The factual allegations giving rise to Jones and the companies’ claims arose out of an incident on April 7, 2008, when Hamilton, at the request of Channon Edwards (“Channon”), provided a key to open a 2000 Toyota Land Cruiser vehicle owned by the companies. Channon was married to, but in the process of a divorce from, Jesse Edwards (“Edwards”), Jones’s half brother and a consultant for the companies. Edwards had been provided access to and was driving the Land Cruiser owned by the companies.

On or about March 31, 2008, Edwards drove Jones to the airport in the Land Cruiser; Jones was leaving for a two-week safari trip to Africa. Once at the airport, Jones noticed that he had left a box of documents containing financial statements and quarterly tax information from the companies, contracts between CPR and/or Mid-West and other companies, and insurance policies behind the backseat of the Land Cruiser. According to the deposition testimony of both Jones and Edwards, Jones told Edwards to be sure to lock the Land Cruiser because those documents were inside. Neither man testified that Jones instructed Edwards to return the documents to either of the companies’ offices, although Edwards returned to one of [137]*137the companies’ offices after leaving the airport.

In his deposition testimony, Edwards said that he did not drive the Land Cruiser “continuously” between March 31 and April 7, 2008, the date Hamilton provided the key to Channon so that Channon could enter the vehicle. Edwards said that, when he was not driving the vehicle during that week-long period, he left the Land Cruiser parked at one of the companies’ offices. He and Jones also testified that the keys to the companies’ vehicles, including the Land Cruiser, were kept at one or the other of the companies’ offices on a peg or “in the front of the office” and were not regularly kept secured.

On April 7, 2008, Edwards drove the Land Cruiser to his residence and began loading some personal and business records related to one of his former businesses into the back of the vehicle. Chan-non arrived at the residence and became upset over Edwards’s actions. Because she believed that the records that Edwards was loading into the vehicle might be relevant to their divorce, Channon demanded that Edwards not remove the records from the residence. Edwards, however, continued loading the records into the Land Cruiser over Channon’s objections. An altercation between Edwards and Channon ensued, resulting in a 911 telephone call to the police and, ultimately, Edwards’s arrest for domestic violence. Before being taken from the residence via police vehicle, Edwards insisted that the police officer lock the Land Cruiser. The police officer complied with this request and instructed Channon to stay away from the Land Cruiser, an instruction that she did not heed.

Channon consulted an attorney friend, who would not advise her, and then telephoned Hamilton. Channon hoped that Hamilton might still have a set of keys to the Land Cruiser because that vehicle had been Hamilton’s company vehicle when Hamilton was employed by the companies. Channon said that she begged Hamilton to assist her in accessing the records that Edwards had placed in the vehicle. Chan-non indicated that Hamilton seemed reluctant to provide the keys; Channon said she based her inference of Hamilton’s reluctance on the fact that Hamilton had not offered the keys on her own and the fact that there was a pause during the conversation after Channon begged Hamilton to help her get into the Land Cruiser.

According to Hamilton, on April 7, 2008, Channon called her, upset about Edwards’s placing boxes of his personal and business records in the back of the Land Cruiser. Hamilton said Channon had asked her if she had the keys to the vehicle and that she had told Channon that she would look for the keys. Hamilton said that she found several Toyota keys in a drawer and that she took all the keys to Channon to see if one might open the Land Cruiser. Hamilton testified that she had not returned the keys to the Land Cruiser after her separation from the companies because no one had ever asked her to do so. Hamilton said that one of the keys opened the Land Cruiser. According to Hamilton and Channon, Hamilton did not approach the Land Cruiser at any time and Hamilton did not assist Channon in removing any boxes from the vehicle. In fact, Hamilton and Channon both testified that Hamilton left soon after Channon was able to open the Land Cruiser.

Jones said that he was informed by Edwards that the box of company documents was taken from the vehicle on April 7, 2008, when Channon removed Edwards’s personal and business records from the vehicle. According to Jones and the companies, Hamilton’s actions in providing the keys to the Land Cruiser and assisting in [138]*138the removal of the confidential documents were a breach of her confidentiality agreement, which required her to keep confidential “all information identified as secret or confidential,” any information pertaining to the business operations of the companies or their financial affairs, and any other information that “from the circumstances ought in good faith and good conscience to be treated as confidential.”1 Jones and the companies also accused Hamilton of disclosing the confidential information contained in the documents she had allegedly removed from the Land Cruiser. Jones and the companies further alleged in the complaint that Hamilton made disparaging remarks about Jones and the companies, which, they asserted, further breached the prohibition on making disparaging statements contained in the November 2007 settlement agreement.2

The trial court’s summary-judgment order did not state the specific basis for the judgment. However, in her motion for a summary judgment, Hamilton made several arguments regarding the claims asserted by Jones and the companies. Hamilton specifically argued that she could not have breached the confidentiality agreement because there was no disclosure, the information was not confidential, and the information had not been maintained as confidential. She further argued that Jones’s failure to take appropriate measures to ensure the confidentiality of the alleged trade secrets prevented him and the companies from succeeding on their claim under the ATSA.

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Bluebook (online)
53 So. 3d 134, 2010 Ala. Civ. App. LEXIS 23, 2010 WL 245584, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jones-v-hamilton-alacivapp-2010.