L-S Industries, Inc. v. Matlack

641 F. Supp. 2d 680, 2009 U.S. Dist. LEXIS 9721, 2009 WL 331385
CourtDistrict Court, E.D. Tennessee
DecidedFebruary 9, 2009
Docket3:07-cv-273
StatusPublished
Cited by1 cases

This text of 641 F. Supp. 2d 680 (L-S Industries, Inc. v. Matlack) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L-S Industries, Inc. v. Matlack, 641 F. Supp. 2d 680, 2009 U.S. Dist. LEXIS 9721, 2009 WL 331385 (E.D. Tenn. 2009).

Opinion

MEMORANDUM OPINION

LEON JORDAN, District Judge.

This civil action is before the court for consideration of “Counter-Defendant, L-S Industries, Inc.’s Motion for Summary Judgment Pursuant to FRCP 56(b)” 1 [doc. 20] and the “Motion for Partial Summary Judgment” filed by defendant/counter-plaintiff Christopher Matlack [doc. 26]. The parties have submitted their responses, and the motions are ripe for the court’s consideration.

I.

Background

In January 2000, defendant/eounterplaintiff, Christopher Matlack (“Matlack”), began working for plaintiffieounter-defendant, L-S Industries (“LSI”). LSI is a manufacturer and supplier of specialized plastic products, like plastic mail totes. Matlack, who had experience in the plastic industry, was hired to work in sales and marketing. During his employment, he worked out of his home in the Atlanta area. Matlack and LSI did not enter into a non-compete agreement during their relationship. Matlack and counter-defendant William Hughes (“Hughes”), president of LSI, entered into a commission agreement on July 20, 2001, the final version of which calls for Matlack to receive a commission on 10% of net profit. On April 27, 2007, Matlack completed his last day of work with LSI; however, he was officially on the payroll until May 4, 2007. Thereafter, counsel for LSI wrote a letter to an individual at Composit Containers, LLC, inquiring about Matlack’s alleged conflict of interest based on Matlack’s activities *682 prior to leaving LSI. Also after Matlack’s departure from LSI, Bonnie Finchum (“Finchum”), CEO at LSI, sent an email to three individuals at a company named Inteplast World-Pak commenting on Mat-lack’s business conduct.

On June 12, 2007, LSI filed suit against Matlack in the Chancery Court for Knox County, Tennessee, asserting several causes of action: breach of employee fiduciary duty of loyalty; tortious interference with business; intentional interference with contracts; violation of Tennessee uniform trade secrets act; and unfair competition. LSI contends that Matlack used confidential information obtained while an LSI employee to pursue vendors and customers of LSI following his employment. LSI also contends that Matlack was representing other business interests while still employed by LSI.

Matlack removed the case to this court. Upon filing his answer, Matlack asserted a counter complaint against LSI and named Hughes as a counter-defendant as well [doc. 7]. In his counter-complaint, Matlack asserted a claim for false light invasion of privacy, intentional interference with business relationship, and breach of contract and accounting. Matlack contends that the letter sent to Composite Containers and the email sent by Finchum placed him in a false light and that LSI interfered with his business relationships. Matlack also contends that his commission was not correctly calculated because Hughes took a large payment at the end of the year that he characterized as “salary” rather than bonus to justify reducing the net profits, thus affecting Matlack’s commission.

II.

Summary Judgment Standard

Pursuant to Federal Rule of Civil Procedure 56(c), summary judgment “should be rendered if the pleadings, the discovery and disclosure materials on file, and any affidavits show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The moving party may discharge its burden by demonstrating that the non-moving party has failed to establish an essential element of that party’s case for which he or she bears the ultimate burden of proof at trial. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party need not support its motion with affidavits or other materials negating the opponent’s claim. Id. at 323, 106 S.Ct. 2548. Although the moving party has the initial burden, that burden may be discharged by a “showing” to the district court that there is an absence of evidence in support of the non-moving party’s case. Id. at 325, 106 S.Ct. 2548 (emphasis in original).

After the moving party has carried its initial burden of showing that there are no genuine issues of material fact in dispute, the burden shifts to the non-moving party to present specific facts demonstrating that there is a genuine issue for trial. Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586-87, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). “The ‘mere possibility’ of a factual dispute is not enough.” Mitchell v. Toledo Hosp., 964 F.2d 577, 582 (6th Cir.1992) (citing Gregg v. Allen-Bradley Co., 801 F.2d 859, 863 (6th Cir.1986)). In order to defeat the motion for summary judgment, the non-moving party must present probative evidence that supports its complaint. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249-50, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The non-moving party’s evidence is to be believed, and all justifiable inferences are to be drawn in that party’s favor. Id. at 255, 106 S.Ct. 2505. The court determines whether the evidence requires submission to a jury or whether one party must prevail as a matter of law because *683 the issue is so one-sided. Id. at 251-52, 106 S.Ct. 2505.

III.

Analysis

Matlack’s Motion for Partial Summary Judgment

Matlack has moved for summary judgment on two of the five counts in the complaint. For the reasons discussed below, his motion will be denied.

Count 2 — Tortious Interference toith Business

LSI alleges in count 2 of the complaint its claim for “tortious interference with business” as follows:

After pursuing an employment relationship with Del-Tec Corporation, but while still employed by LSI in April and May, 2007, Matlack continued to solicit, manage and accept purchase orders from customers for LSI plastic products, without securing these purchase orders for the benefit of LSI. Instead, Matlack solicited these customer orders for himself and/or his subsequent employer, Del-Tec, while being employed by LSI. During and subsequent to his LSI employment, Matlack has attempted to establish for himself and/or DelTec certain vendor relationships and open account credit terms, with LSI’s key vendors of LSI’s plastic products, for the purchase of unique Materials.

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Cite This Page — Counsel Stack

Bluebook (online)
641 F. Supp. 2d 680, 2009 U.S. Dist. LEXIS 9721, 2009 WL 331385, Counsel Stack Legal Research, https://law.counselstack.com/opinion/l-s-industries-inc-v-matlack-tned-2009.