Leventhal & Associates, Inc. v. Thomson Central Ohio

714 N.E.2d 418, 128 Ohio App. 3d 188, 1998 Ohio App. LEXIS 2447
CourtOhio Court of Appeals
DecidedJune 4, 1998
DocketNo. 97APE08-1011.
StatusPublished
Cited by13 cases

This text of 714 N.E.2d 418 (Leventhal & Associates, Inc. v. Thomson Central Ohio) 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
Leventhal & Associates, Inc. v. Thomson Central Ohio, 714 N.E.2d 418, 128 Ohio App. 3d 188, 1998 Ohio App. LEXIS 2447 (Ohio Ct. App. 1998).

Opinion

Petree, Judge.

Plaintiff, Leventhal and Associates, Inc., appeals from a decision of the Franklin County Court of Common Pleas granting summary judgment in favor of defendant, Thomson Central Ohio. Plaintiff sets forth four assignments of error, as follows:

“[I.] The trial court erred in granting appellee’s motion for summary judgment; therefore, the summary judgment should be overruled and the case remanded.
“[II.] Count one of the appellant’s complaint is based on a cause of action under common law deceptive trade practices and R.C. 4165.02, not on misappro *191 priation of trade secrets, thus the trial court erred by applying the wrong legal standard and summary judgment should be overruled and the case remanded.
“[III.] The trial court erred in finding that appellee did not engage in acts of unfair competition; therefore, summary judgment should be overruled.
“[IV.] The trial court ignored count three of appellant’s complaint; therefore, summary judgment should be overruled, and should be remanded to trial on the merits.”

Since 1988, plaintiff has published a children’s magazine called Kids Connection. Kids Connection is published three or four times a year and is distributed free of charge in five or six central Ohio counties. In Franklin County, it is distributed primarily through the Columbus Public Schools, Columbus Metropolitan Libraries, and Columbus recreation centers. Outside Franklin County, it is distributed primarily through sponsors and advertisers. There are no paid subscribers to Kids Connection.

Kids Connection is financed entirely by advertisers and sponsors. An advertiser pays for an advertisement and, in exchange, receives copies of the magazine for distribution to its customers and/or employees. A sponsor pays a larger sum of money than an advertiser and, in exchange, is featured more prominently in the magazine. Specifically, a sponsor is featured, by name and logo, on the cover, in the table of contents, and on the top of the page that it sponsors. A sponsor receives large quantities of the magazine for distribution.

Kids Connection is targeted at children ages five through twelve and is composed of creative materials submitted by children in the central Ohio area. Kids Connection also includes a calendar of upcoming children’s events in the community.

Defendant is a division of Thomson Newspapers, Inc., which is part of Thomson Enterprises, a multinational company. Thomson Newspapers, Inc. publishes both daily and weekly newspapers, numerous magazines, and other publications. Sharon Whalen is the Vice-President of defendant’s Business Development Division and is primarily responsible for developing new publications within central Ohio.

In September 1995, Whalen began surveying the central Ohio area to develop new publications for defendant. Defendant was particularly interested in entering the specialty publishing area. In November 1995, Thomson Target Media, a product development division of Thomson Newspapers, Inc., informed Whalen of a children’s magazine called Curiocity For Kids, which Thomson Target Media had developed and which Thomson Newspapers, Inc. had begun publishing in Wisconsin. In December 1995, Whalen met with representatives of Thomson Target Media to explore the possibility of defendant’s publishing a similar *192 magazine in the central Ohio area. At that meeting, Whalen and the Thomson Target Media representatives discussed the concept of financing the magazine through underwriters.

In December 1995, Whalen and her staff began conducting market research in the central Ohio area to determine whether there existed enough community support and advertising interest to support a children’s magazine. This market research did not uncover the existence of Kids Connection or any other children’s publication in the central Ohio area.

In mid-January 1996, Whalen learned of the Kids Connection publication and the fact that it was for sale. Whalen obtained a copy of Kids Connection at a branch of the Columbus Metropolitan Library. She arranged a meeting with Aaron Leventhal, plaintiffs president, on January 31, 1996 to discuss the possibility of purchasing Kids Connection. During the course of this meeting, Whalen did not mention that defendant was in the process of developing a competing children’s publication. Leventhal explained to Whalen how he operated Kids Connection, including the use of sponsors to underwrite the magazine. Leven-thal gave Whalen several items to take with her for review, including back issues of Kids Connection and advertising rate sheets. These same materials had been given to other potential purchasers. Whalen was not asked to treat the materials as confidential, nor was she requested to sign a confidentiality agreement. Whalen was informed that the purchase price of Kids Connection was $80,000. Whalen told Leventhal she would discuss the matter with her boss and get back with him as quickly as possible.

Sometime between the January 31, 1996 meeting and February 8, 1996, Whalen met with her boss and discussed the possibility of purchasing Kids Connection. Defendant decided against the purchase for financial reasons. Thereafter, Whalen communicated this decision to Leventhal by letter dated February 8, 1996. This letter did not mention that defendant was in the process of developing a competing publication. The Kids Connection materials were returned to Leventhal.

In April 1996, defendant produced and distributed promotional materials that described the content of and proposed distribution system for a children’s magazine called Columbus Curiocity For Kids, set forth advertising specifications and rates, and listed underwriting opportunities that were available with respect to the publication. These promotional materials were distributed to a very limited number of persons who had been targeted as potential advertisers for Columbus Curiocity For Kids. Defendant also produced and distributed a prototype edition of Columbus Curiocity For Kids to small focus groups of parents and children. According to Whalen, the model for the prototype edition *193 of Columbus Curiocity For Kids was Thomson Newspapers, Inc.’s Wisconsin Curiocity For Kids, not Kids Connection.

The promotional materials referenced above stated that Columbus Curiocity For Kids was “Columbus’ only magazine for kids!” Within forty-eight hours after Whalen became aware of the potential problem associated with using that statement, she eliminated the problem by ordering revised promotional materials that did not contain that wording.

Based on focus group results, defendant went ahead with publication of Columbus Curiocity For Kids. The first issue was distributed in June 1996.

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Bluebook (online)
714 N.E.2d 418, 128 Ohio App. 3d 188, 1998 Ohio App. LEXIS 2447, Counsel Stack Legal Research, https://law.counselstack.com/opinion/leventhal-associates-inc-v-thomson-central-ohio-ohioctapp-1998.