Levine v. Beckman

548 N.E.2d 267, 48 Ohio App. 3d 24, 1988 Ohio App. LEXIS 1756
CourtOhio Court of Appeals
DecidedMay 3, 1988
Docket87AP-837
StatusPublished
Cited by69 cases

This text of 548 N.E.2d 267 (Levine v. Beckman) 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
Levine v. Beckman, 548 N.E.2d 267, 48 Ohio App. 3d 24, 1988 Ohio App. LEXIS 1756 (Ohio Ct. App. 1988).

Opinion

Strausbaugh, J.

This is an appeal by plaintiff from a judgment of the court of common pleas denying injunc-tive relief. The court, upon plaintiff’s motion for preliminary injunctive relief, consolidated the hearing as to the preliminary injunction with the merits for permanent injunctive relief. At the close of plaintiff’s case, the trial court dismissed that branch of the complaint on defendant’s oral motion.

Plaintiff, Stewart Levine, d.b.a. Teletrend, is a manufacturer of heat-applied graphics, known as “transfers.” The transfer business consists of creating designs and printing them in a manner that allows them to be transferred to textiles used by customers. Although there are various processes used in the industry, Teletrend uses a silkscreen process and markets its products nationally through trade magazines, catalogs, trade shows, and so forth.

Teletrend has developed a unique product within the transfer industry. These transfers are marketed by Tele-trend under the trade name “Genesis,” which transfers constitute the majority of Teletrend’s sales. Because of the unique quality of the Genesis transfers, Teletrend is able to command an unusually high price for these products. The Genesis transfers, as the name indicates, use a method developed by Teletrend over a period of several years through trial and error experimentation. As such, the methods developed by Teletrend are carefully guarded. This secrecy is maintained by Teletrend via physical segregation of *26 the various departments and through the use of its corporate structure.

Defendant, Michael Beckman, was hired by Teletrend as an artist in January 1986. He was later promoted to art supervisor and apparently had access to all production areas as well as the art department. In short, defendant was familiar with the various aspects of the Genesis manufacturing process, including specific materials and techniques used to make the transfers. Subsequently, in March 1987, defendant voluntarily resigned. Currently, defendant is an independent contractor, but sells his work to a company which competes with Teletrend. Plaintiff maintains that this company now has the ability to use defendant’s knowledge to avoid the laborious and expensive development work performed by Teletrend to develop the Genesis transfer process.

When he was hired, Beckman executed an agreement which contained two restrictive covenants. The first covenant provided that defendant would not work for a competitive company for two years after leaving Teletrend. The second covenant prohibited defendant from revealing plaintiffs secret manufacturing process. When plaintiff discovered that defendant was, in effect, working as an independent contractor for his competitor, suit was filed to enforce both covenants. The complaint sought both temporary and permanent injunctive relief regarding each of the two covenants.

At a hearing on plaintiffs motion to preliminarily enjoin defendant from either divulging trade secrets or working for a competitor, defendant moved the court to dismiss the complaint at the close of plaintiffs case. Defendant maintained that plaintiff had failed to establish irreparable harm. The court consolidated the hearing as to the preliminary injunction regarding the noncompetition covenant with the trial on the merits for permanent injunctive relief as to that covenant and dismissed that branch of plaintiffs complaint, finding no just reason for delay. The court did, however, grant plaintiffs motion for temporary relief as to the nondisclosure of information. Plaintiff now appeals and assigns one error for review:

“The Trial Court abused its discretion in denying injunctive enforcement of the non-competition covenant.”

It is plaintiff’s position that the trial court abused its discretion in denying injunctive enforcement of the noncompetition agreement. Specifically, plaintiff maintains that the evidence adduced at trial established that the restraint sought was no greater than necessary to protect plaintiff’s legitimate business interests and that the effect of such enforcement would not be unduly harsh on defendant.

Initially, we note that this matter is before the court apparently as the result of an involuntary dismissal pursuant to Civ. R. 41(B)(2). That section reads:

“After the plaintiff, in an action tried by the court without a jury, has completed the presentation of his evidence, the defendant, without waiving his right to offer evidence in the event the motion is not granted, may move for a dismissal on the ground that upon the facts and the law the plaintiff has shown no right to relief. The court as trier of the facts may then determine them and render judgment against the plaintiff or may decline to render any judgment until the close of all the evidence. If the court renders judgment on the merits against the plaintiff, the court shall make findings as provided in Rule 52 if requested to do so by any party.”

Although provided for by the rule, neither party requested that the court make findings of fact or conclusions of *27 law. As such, our review of the dismissal is not limited to a specific issue.

In ruling upon a Civ. R. 41(B)(2) motion, it is the function of the trial court to review the evidence and the law. Civ. R. 41(B)(2). In this respect, the trial court is not required to construe the evidence in favor of the non-moving party, but rather may weigh the evidence and render judgment. Central Motors Corp. v. Pepper Pike (1979), 63 Ohio App. 2d 34, 47-49, 13 O.O. 3d 347, 356-357, 409 N.E. 2d 258, 270-271; Hamilton Acceptance Corp. v. National Dealer Services, Inc. (June 23, 1981), Franklin App. No. 81AP-79, unreported, at 3. Where plaintiffs evidence is insufficient to sustain plaintiff’s burden in the matter, the trial court may dismiss the case. See Civ. R. 42(B)(2); Hamilton Acceptance Corp., supra. While dismissal is discretionary with the trial court, that discretion is not absolute. Rather, the decision to dismiss must be guided by the evidence in the case and the pertinent law. Cf. Jacobs v. Auglaize Cty. Bd. of Commrs. (1971), 27 Ohio App. 2d 63, 65, 56 O.O. 2d 245, 246, 272 N.E. 2d 635, 636-637; Ahern v. Ehrie (Aug. 30, 1984), Franklin App. No. 83AP-223, unreported, at 6.

As to this latter requirement, the case law relevant to the instant matter is composed of three elements. The first of these requires that the non-competition agreement be valid. Raimonde v. Van Vlerah (1975), 42 Ohio St. 2d 21, 71 O.O. 2d 12, 325 N.E. 2d 544. In Raimonde, the Supreme Court of Ohio set forth a rule of reasonableness with respect to the enforcement of noncompetition agreements between employees and their employer. Such an agreement is reasonable if: (1) it is no greater than is required for the protection of the employer; (2) it does not impose undue hardship on the employee; and (3) it is not injurious to the public. Id. at paragraph two of the syllabus. Second, the plaintiff is required to adduce clear and convincing evidence as to each of these factors in order to overcome a defendant’s Civ. R. 41(B)(2) motion. Cf. Apronstrings, Inc. v. Tomaric (Aug. 7, 1987), Lake App. No.

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Bluebook (online)
548 N.E.2d 267, 48 Ohio App. 3d 24, 1988 Ohio App. LEXIS 1756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levine-v-beckman-ohioctapp-1988.