Marshall Hunn v. Dan Wilson Homes, Incorporated, e

789 F.3d 573, 2015 WL 3687674
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 15, 2015
Docket13-11297, 14-10365
StatusPublished
Cited by47 cases

This text of 789 F.3d 573 (Marshall Hunn v. Dan Wilson Homes, Incorporated, e) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Marshall Hunn v. Dan Wilson Homes, Incorporated, e, 789 F.3d 573, 2015 WL 3687674 (5th Cir. 2015).

Opinion

JENNIFER WALKER ELROD, Circuit Judge:

Appellee Ben Lack, who was employed as a draftsman at Appellant Marshall Hunn’s architectural design firm, resigned from his position while in the middle of a project for Hunn’s client, Appellee Dan Wilson. Homes. After Lack resigned from Hunn’s employ, Dan Wilson hired Lack to complete the project. Hunn, alleging that Lack and Wilson secretly agreed to this arrangement in advance — ie., that Lack and Wilson secretly agreed to cut Hunn out of the business relationship — brought numerous claims against Lack and Wilson. The district court granted summary judgment to Lack and Wilson on many of the claims and, after a bench trial, ruled in favor of Lack and Wilson on the remaining claims. Because the district court did not clearly err in finding that Lack and Wilson never made the alleged secret agreement, and because Hunn’s legal theories lack merit, we AFFIRM.

I.

Dan Wilson is the owner and president of Dan Wilson Homes, Inc., which is a custom home construction company. 1 As relevant here, Wilson contracted with Hunn Designs, an architectural design firm owned by Marshall Hunn, to produce plans for four custom homes. 2 Wilson hired Hunn’s firm because he wanted the plans to be drafted by Ben Lack, who was employed on an at-will basis by Hunn. 3

Wilson and Hunn agreed to a fee amount of $1.25 per square foot of air- *577 conditioned living space for plans drafted by Lack. Wilson made clear to Hunn that Wilson would be directing the design work as requested by his clients/homeowners and would not need any pre-designed plans from Hunn. Hunn’s responsibilities were to provide quality plans in a timely manner for Dan Wilson Homes to use to build the custom homes. Lack was to draft the plans as directed by Wilson and the homeowners. Wilson’s responsibility under the parties’ agreement was to pay for the plans.

Lack was the only Hunn employee who worked on the four custom plans for Dan Wilson Homes, and Lack served as a representative for Hunn Designs at weekly meetings with Wilson and the homeowners. At these weekly meetings, Lack delivered paper copies of the plans to Wilson and the homeowners. After Lack commenced work on all four of the plans— but before he completed any of the plans— Lack decided to resign from his position at Hunn Designs. On October 5, 2011, Lack informed Hunn of his desire to resign. Hunn and his wife initially feared that Lack had agreed to work in-house for Dan Wilson Homes, but the next day, Lack told Wilson that he had no job offer from Dan Wilson Homes. Hunn, upon hearing that Lack did not have an offer from Wilson, asked Lack to take the weekend to consider his options, and Lack continued to work for Hunn on that day and also the next day (Friday) from the office and home.

During this period, Lack believed that even if he gave official notice of his intent to resign from his employment with Hunn, he would be expected and permitted to continue working for two more weeks before his employment ended. Thus, Lack believed and intended that he would be able to complete the Wilson projects during his remaining two weeks of employment with Hunn. Indeed, Lack notified Wilson that he was considering resigning, but assured Wilson that he (ie., Lack) intended to complete the drafting of Wilson’s plans (as an employee of Hunn’s).

Over the weekend, and still under the impression that he would be allowed to continue working at Hunn Designs on the projects he had been assigned, Lack requested by email that a friend of his convert some of the Wilson project (virtual) files from the 2008 version of AutoCAD to the 2006 version. This conversion was required because Lack maintained his own copy of AutoCAD software on his home computer in the 2006 version and the version at Hunn’s offices was the 2008 version. Hunn permitted draftsmen to take files home because draftsmen often worked on projects on their own home computers as well as on the work computers contained in Hunn’s office. Hunn does not dispute that Lack had permission to work on the files at home and was expected to do so in order to ensure timely completion of projects.

After an exchange between Lack and the Hunns on the morning of Monday, October 10, 2011, relating to Lack’s decision about whether he would remain employed at Hunn Designs, Lack was asked to discontinue employment immediately. The Hunns asked Lack to. return the Dan Wilson Home project (physical) files, which were at Lack’s house. The Hunns did not ask Lack to return the AutoCAD (virtual) files. Lack retrieved the physical files and then cleaned out his office and left Hunn Designs.

When Lack’s employment with Hunn ended, the home plans at issue were not’ yet completed. At that time, the Winder/McGee and Brown plans were approximately 90-95 percent complete, the Jeffers plan was approximately 30-40 percent complete, and the Showcase plan was only at the hand-sketch stage. At the time Lack’s employment ended, Wilson had *578 physical drafts of all four plans in the same stage of completion as those Lack maintained on his computer. Nothing new had been added to the plans between the time when Lack delivered the latest version of the plans to Wilson and the day when Lack resigned.

Upon learning that Lack was no longer employed with Hunn, Wilson asked Hunn who would.be completing the custom home plans and when the completion could be expected. Hunn, who was angry with Wilson for what he perceived as a secret plan between Wilson and Lack for Lack to become employed by Dan Wilson Homes, informed Wilson that he (ie., Hunn) did not know when he could complete the plans because he was busy on other projects. The Hunns also suggested that the draft plans were their property and that Wilson would violate copyright laws if he used the copies of the plans he had in his possession to complete the homes for his clients. Wilson proposed several ideas to Hunn about how the plans could timely be completed, including: (1) bringing the drafts in their then-current states of completion to Hunn to complete; (2) Hunn employing Lack a short time more so that Lack could finish the plans; (3) offering to pay for the percentage of completion in which the drafts stood in relation to the fully completed contract amount; and (4) offering to have the plans finished and then brought back to Hunn so that Hunn could copyright them to alleviate Hunn’s contentions about asserted copyright claims. Hunn, however, rejected all of the ideas. Mrs. Hunn informed Wilson that he should hire an attorney, and the Hunns’ attorney sent a letter to Wilson that included a statement that “the ability of Hunn to complete the existing designs” had been impaired. Hunn later applied for copyright protection on the plans, even though he had never before registered or applied for copyrights on any other set of home plans. Wilson, after failing to convince Hunn to accept one of his proposals and receiving the letter from the Hunns’ attorney, asked Lack to complete the plans. At the time Wilson asked Lack to complete the plans, Wilson was unaware of any non-compete clause Lack may have entered into with Hunn. Both Wilson and Lack believed that the plans were the property of the homeowners because the designs were based on the homeowners’ ideas and concepts.

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Bluebook (online)
789 F.3d 573, 2015 WL 3687674, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marshall-hunn-v-dan-wilson-homes-incorporated-e-ca5-2015.