Joseph, L. v. O'Laughlin, J.

CourtSuperior Court of Pennsylvania
DecidedAugust 22, 2017
DocketJoseph, L. v. O'Laughlin, J. No. 1706 WDA 2015
StatusUnpublished

This text of Joseph, L. v. O'Laughlin, J. (Joseph, L. v. O'Laughlin, J.) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joseph, L. v. O'Laughlin, J., (Pa. Ct. App. 2017).

Opinion

J-A20015-16

NON-PRECEDENTIAL DECISION - SEE SUPERIOR COURT I.O.P. 65.37

LAURIE A. JOSEPH IN THE SUPERIOR COURT OF PENNSYLVANIA v.

JOHN B. O’LAUGHLIN,

Appellant No. 1706 WDA 2015

Appeal from the Order September 30, 2015 In the Court of Common Pleas of Fayette County Civil Division at No(s): 1691 of 2015 G.D.

BEFORE: BOWES, STABILE AND MUSMANNO, JJ.

MEMORANDUM BY MUSMANNO, J.: FILED AUGUST 22, 2017

John B. O’Laughlin (“O’Laughlin”) appeals from the trial court’s Order

permanently enjoining O’Laughlin from engaging in activities related to the

future operation of a veterinary clinic within a fifty mile radius of the Grace

Veterinary Clinic, Inc. (“Grace Veterinary Clinic”),1 which is owned by Laurie

Joseph (“Joseph”). We affirm.

On December 23, 2014, O’Laughlin and Joseph executed an asset

transfer agreement (“the Agreement”) outlining Joseph’s purchase of the

Grace Veterinary Clinic. The Agreement included the following restrictive

covenant:

[O’Laughlin] acknowledges and agrees that he will not be involved in any of the following activities at any location within fifty (50) miles of the veterinary clinic (“Geographic Area”). [O’Laughlin] covenants and agrees that for a period of five (5) ____________________________________________

1 Grace Veterinary Clinic is located at 1565 Route 31 in Westmoreland County, Pennsylvania. J-A20015-16

years following the execution of this Agreement, he shall not directly or indirectly, as an employer, employee, principal, agent, consultant, partner, stockholder, creditor or in any other capacity, engage or participate in any business or practice within the Geographic Area that is in competition in any manner whatsoever with the Buyer. Further, [O’Laughlin] shall not contact, solicit, or engage in any activity to contact or solicit, indirectly or directly, any client, past, present, or future, during that five (5) year period.

Agreement, 12/24/14, ¶ 3 (at unnumbered page 3). The restrictive

covenant, which expires on December 24, 2019, comprised $17,973.50 of

the $750,000 sale price.2 Id. at ¶ 4.

Approximately six months later, on July 2, 2015, O’Laughlin filed a

Petition for Special Exemption with the Fayette County Zoning Hearing

Board, wherein he requested permissive use to operate a veterinary clinic at

114 Eannotti Road, Dawson Pennsylvania, which is approximately eight

miles from the Grace Veterinary Clinic. The zoning hearing was scheduled

for August 26, 2015. Meanwhile, O’Laughlin formed a limited liability

company (O’Laughlin Veterinary Services), created a Facebook page of the

same name, and purchased equipment. The Facebook page included a link

that advised followers that the clinic was, “coming soon,” and when

activated, the link directed users to the business’s location on a map.

____________________________________________

2 Each of the remaining intangible assets involved in the sale, i.e., goodwill, use of the brand name for six months, and customer base, were also valued at $17,973.50. See Agreement, ¶ 3 (at unnumbered page 3).

-2- J-A20015-16

On August 25, 2015, Joseph filed an action for injunctive relief,

seeking to enforce the Agreement’s restrictive covenant. Specifically,

Joseph sought to permanently enjoin O’Laughlin from operating a veterinary

clinic and prohibit him from seeking the zoning variance that was scheduled

for a hearing the following day. On the same date, Joseph filed a self-styled

Motion for Preliminary/Permanent Injunction requesting the identical relief.

On August 27, 2015, the trial court entered a preliminary injunction

against O’Laughlin, ordering him to “cease and desist any veterinary

operations at … 114 Eannotti Road,” and suspending the zoning hearing

pending disposition of the permanent injunction action. Thereafter, following

an evidentiary hearing, the trial court entered the permanent injunction at

issue in this appeal. Specifically, the court prohibited O’Laughlin from

operating a veterinary clinic within fifty miles of Grace Veterinary Clinic,

canceled the zoning hearing, dismissed O’Laughlin’s petition for a special

exemption, directed O’Laughlin to cease operations at the 114 Eannotti Road

facility, and enjoined O’Laughlin “from engaging in any activity that would

violate the [] Agreement[.]” Trial Court Order, 9/30/15, at 2. Thereafter,

O’Laughlin filed the instant timely appeal, followed by a court-ordered

Pa.R.A.P. 1925(b) Concise Statement of matters complained of on appeal.3

3 O’Laughlin initially leveled three claims; however, he filed an Amended Concise Statement, which included an additional claim.

-3- J-A20015-16

O’Laughlin presents the following claims for our review:

1. Did the [trial] court err in entering the permanent injunction order in favor of [Joseph] by citing to and relying upon as precedential authority in its opinion an unpublished memorandum decision of the Pennsylvania Superior Court.

2. Did the [trial] court err in entering the permanent injunction order when the prerequisite legal elements for the issuance of such an injunction [were never established]?

3. Did the [trial] court err in entering the permanent injunction order in favor of [Joseph,] based on proof of [O’Laughlin’s] preliminary actions in preparing to compete against [Joseph] at a future point in time?

4. Did the [trial] court err in entering the permanent injunction order in favor of [Joseph] as the order exceeded the scope of the proof advanced by [Joseph] at the permanent injunction hearing?

Brief of Appellant at 4 (issues renumbered for ease of disposition).

O’Laughlin first claims that the trial court erred in relying upon this

Court’s unpublished decision in Atkinson & Mullen Travel, Inc., et al. v.

O’Brien, et al, 2944 EDA 2012 (Pa. Super. filed May 5, 2014) (unpublished

memorandum), as authoritative precedent in rendering its decision. In that

case, we inferred a need, in light of that appellant’s past litigiousness, for a

permanent injunction to prevent the appellant from engaging in serial

litigation against a defendant, even though no lawsuit was pending.

Presently, the trial court relied upon our discussion in the unpublished

memorandum to support its analogous rationale that O’Laughlin’s

preparations violated the restrictive covenant because “it [was] improbable

that [O’Laughlin] took all of the aforementioned actions so that he could be

-4- J-A20015-16

ready to compete on December 24th, 2019, and not before.” Trial Court

Opinion, 9/30/15, at 5.

As O’Laughlin accurately observes, Superior Court Internal Operating

Procedure § 65.37 precludes any court or party from citing or relying upon

an unpublished memorandum decision except in limited situations that are

not implicated in this case. Specifically, the proviso states,

A. An unpublished memorandum decision shall not be relied upon or cited by a Court or a party in any other action or proceeding, except that such a memorandum decision may be relied upon or cited (1) when it is relevant under the doctrine of law of the case, res judicata, or collateral estoppel, and (2) when the memorandum is relevant to a criminal action or proceeding because it recites issues raised and reasons for a decision affecting the same defendant in a prior action or proceeding. When an unpublished memorandum is relied upon pursuant to this rule, a copy of the memorandum must be furnished to the other party to the Court.

Superior Court IOP § 65.37(A).

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Bluebook (online)
Joseph, L. v. O'Laughlin, J., Counsel Stack Legal Research, https://law.counselstack.com/opinion/joseph-l-v-olaughlin-j-pasuperct-2017.