Life Line Screening of America, Ltd. v. Calger

2006 Ohio 7322, 881 N.E.2d 932, 145 Ohio Misc. 2d 6
CourtCuyahoga County Common Pleas Court
DecidedJune 19, 2006
DocketNo. CV 06 580982
StatusPublished
Cited by1 cases

This text of 2006 Ohio 7322 (Life Line Screening of America, Ltd. v. Calger) is published on Counsel Stack Legal Research, covering Cuyahoga County Common Pleas Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Life Line Screening of America, Ltd. v. Calger, 2006 Ohio 7322, 881 N.E.2d 932, 145 Ohio Misc. 2d 6 (Ohio Super. Ct. 2006).

Opinion

Boyle, Judge.

{¶ 1} This matter came before the court for oral hearing upon plaintiff Life Line Screening America, Ltd.’s January 5, 2006 motion for preliminary injunction, opposed by defendants Frank R. Calger and Melissa Calger in their February 10, 2006 brief in opposition. On March 1, 2006, the parties commenced the preliminary injunction hearing. Due to this court’s criminal docket and the schedules of the attorneys, the preliminary injunction proceeding was heard over several sessions and concluded on April 5, 2006. The parties submitted exhibits, and the court heard testimony from Tim Phillips, Linda Fedor, Rena Law (Life Line Director of Clinical Operations), Dinah Vince (former Life Line Director of Clinical Operations), and Frank and Melissa Calger. After having heard and reviewed the testimony, pleadings, and evidence, the court hereby grants plaintiffs motion for preliminary injunction.

I. PROCEDURAL HISTORY

{¶ 2} In this case, plaintiff Life Line Screening of America, Ltd. (“Life Line”) seeks to enforce the terms of two identical noncompete contracts (“the agreements”) entered into between Life Line and the defendants, Frank Calger and Melissa Calger. Life Line filed its verified complaint against the Calgers on January 5, 2006, in which it asserted claims of breach of contract (Count I), [12]*12misappropriation of trade secrets (Count II), and breach of the duty of loyalty (Count III). Also on January 5, Life Line filed a motion for preliminary injunction and an application for a temporary restraining order, seeking to enjoin the Calgers from (1) breaching the terms of the agreement for two years from the conclusion of this action, (2) soliciting Life Line’s customers and/or employees, and (3) using Life Line’s trade secrets or confidential information on behalf of any competitive entity.

{¶ 3} On January 9, 2006, the parties convened for a hearing regarding the application for a temporary restraining order. At that hearing, the court heard testimony from Life Line Executive Vice President Tim Phillips, Life Line Midwest Regional Manager Linda Fedor, and Frank and Melissa Calger. On January 13, 2006, this court issued a temporary restraining order, ordering the Calgers and Health Choice to cease providing health-screening tests in violation of the agreements. On January 31, 2006, this court extended the temporary restraining order an additional 14 days.

II. FINDINGS OF FACT

{¶ 4} Life Line was founded in Cleveland, Ohio, in 1997 and now operates in all states except Hawaii and Alaska. Life Line provides health screenings for vascular diseases, using ultrasound technology. These screenings are designed to detect cerebrovascular disease, aortic aneurism, peripheral vascular disease, and osteoporosis. Specifically, Life Line performs four health screening tests: (1) an ultrasound scan for carotid artery stenosis, (2) an ultrasound scan for abdominal aorta aneurysm, (3) an Ankle-Brachial Index to screen for peripheral artery disease, and (4) a Bond Density scan to screen for osteoporosis.

{¶ 5} Life Line delivers its health screenings on a mobile basis, having mobile units that travel to destinations throughout communities across the continental United States. The vans are staffed with four to five employees, usually two ultrasound sonographers and two or three medical technologists. Life Line has approximately 70 such teams deployed throughout the country.

{¶ 6} Life Line offers the screenings to the public at different venues located throughout communities in which Life Line is active. The venues are often associated with community organizations — e.g., churches, whose participation has been achieved through Life Line marketing and outreach efforts. Once a site and screening date have been established, Life Line markets the event to individual participants. Life Line marketing is done largely through the distribution of flyer inserts in local print media, through direct mail, and through its website.

{¶ 7} When conducting the screenings, Life Line personnel follow screening protocols developed by the company. The protocols were developed primarily by [13]*13former Life Line Director of Clinical Operations Dinah Vince, along with significant input from consulting physicians. The protocols outline procedures whereby accurate screening results may be obtained for a participant in approximately five minutes. Use of the protocols allows Life Line to screen up to 90 persons per day at a particular site.

{¶ 8} Life Line also presented other evidence of business processes that it deems confidential and protectable. These include its methods of marketing and its operational procedures, including patient-information forms and screening logistics. Life Line also asserted that its training program, which Frank and Melissa Calger played leadership roles in, is protectable.

{¶ 9} Frank and Melissa Calger each worked at Life Line for approximately eight years. Frank was Melissa’s supervisor, and they were married in 2003.

{¶ 10} Frank Calger joined Life Line in November 1997 as an ultrasound-screening technician. Mr. Calger had no prior professional experience in the field of preventive health testing, but had completed an 18-month course in diagnostic medical ultrasound at the Sanford Brown Institute in Cleveland. During his Life Line employment, Mr. Calger progressed upward, attaining the positions of team manager in Northeast Ohio and later national trainer. In the latter-position, Mr. Calger estimates that he trained between 50 to 75 percent of current Life Line ultrasound technicians. Mr. Calger also became a registered vascular technologist while working at Life Line. When Mr. Calger left Life Line in April of 2005, he was among the most experienced Life Line employees and was earning over $70,000 annually.

{¶ 11} Melissa Calger also joined Life Line in 1997 after she completed the 18-month Sanford Brown course. Mrs. Calger did not have any testing experience prior to Sanford Brown. After completing her training at Sanford Brown, Mrs. Calger was employed for a few months with another testing company. Like Mr. Calger, Mrs. Calger progressed in her employment at Life Line. She was an assistant team manager (although she was usually referred to as a co-team manager) when she resigned in April 2005. She also participated in the national training program. When she resigned, Mrs. Calger was earning approximately $60,000 per year with Life Line.

{¶ 12} Since leaving Life Line, both Frank and Melissa Calger have secured full-time employment as sonographers at medical facilities in Northeast Ohio.

{¶ 13} The Calgers began to explore the option of starting their own company in October and November 2004. The Calgers testified that they sought, in part, to enjoy a more regular work schedule than they had at Life Line, and they felt they had the expertise to establish a successful health-screening business. Initially, they considered establishing a fetal imaging business, providing pregnant [14]*14women sonographic images of their fetuses. By November 2004, however, they decided to start a business directly in competition with Life Line.

{¶ 14} In November 2004, Mr. Calger told Life Line Midwest Regional Manager, Linda Fedor, that he and Mrs. Calger expected to resign from Life Line in the near term. In both November and December, Fedor asked Mr. Calger directly whether he planned to compete with Life Line. On both occasions he responded that he did not plan to do so.

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Bluebook (online)
2006 Ohio 7322, 881 N.E.2d 932, 145 Ohio Misc. 2d 6, Counsel Stack Legal Research, https://law.counselstack.com/opinion/life-line-screening-of-america-ltd-v-calger-ohctcomplcuyaho-2006.