Moore v. Commercial Aircraft Interiors, LLC

278 P.3d 197
Court of Appeals of Washington·Decided May 29, 2012·No. 66279-1-I·Published·Cited by 11 cases

Opinion

278 P.3d 197 (2012)

Robert S. MOORE, Appellant,
v.
COMMERCIAL AIRCRAFT INTERIORS, LLC, and Jerry Welch, Individually and as President and Chief Executive Officer of Commercial Aircraft Interiors, LLC, Respondents.

No. 66279-1-I.

Court of Appeals of Washington, Division 1.

May 29, 2012.

*198 Kelby D. Fletcher, Stokes Lawrence, Seattle, WA, for Appellant.

Don P. Badgley, Badgley Mullins Law Group PLLC, Seattle, WA, for Respondents.

BECKER, J.

¶ 1 Robert Moore appeals a grant of summary judgment in favor of his former employer, Commercial Aircraft Interiors LLC, and its owner, Jerry Welch. Moore claimed they tortiously interfered with his expectation of employment and blacklisted him. We affirm the order of dismissal.

FACTS

¶ 2 Jerry Welch founded International Aero Interiors LLC (IAI), located in Skagit County. In 2003, Welch left IAI to form Commercial Aircraft Interiors LLC (CAI), also in Skagit County. Appellant Robert Moore worked under Welch at IAI as vice president of sales and marketing. In March 2004, Welch hired Moore to serve in the same role at CAI. IAI is now known as Volant Aerospace Holdings LLC. CAI and Volant are competitors in the aircraft interior refurbishment business.

¶ 3 In February 2005, CAI required Moore to sign a document acknowledging that he understood and agreed to abide by CAI's "policy of non-disclosure of any and all company policies, trade secrets, intellectual properties, and customer contacts to outside entities or persons." Moore was asked to sign a second nondisclosure agreement in August 2008. Moore resigned from his position at CAI later in August or September 2008.

¶ 4 In October 2008, Volant expressed interest in purchasing CAI. Volant and CAI hired Moore to serve as an independent consultant to assist them in negotiating the acquisition. Moore signed consulting contracts with both companies that prohibited him from divulging the companies' trade secrets, financial data, and other know-how to third parties.

¶ 5 The negotiation was unsuccessful. In March 2009, Moore was rehired by CAI in his former role as vice president of sales and marketing. Several months later, in August 2009, Moore was laid off in a general reduction of force.

¶ 6 Moore was not asked to sign a noncompete covenant or other postemployment restraint at any of the times he entered or left CAI's employment. CAI explained in interrogatory answers that it did not seek such a covenant because "Moore had worked for CAI and with Jerry Welch for many years so a level of trust had been developed."

¶ 7 After being laid off by CAI, Moore looked to Volant for employment. Volant agreed to hire Moore. Before finalizing the hire, however, Volant president Ian Rollo sent a letter to Welch. Rollo related Volant's *199 interest in hiring Moore and asked Welch to agree that CAI had no objection to Moore working for Volant. Rollo's letter stated:

Mr. Moore has requested that Volant extend an offer of employment to him and Volant has agreed to do so, but only if said offer of employment does not violate any non-compete or other restrictive covenants existing between Mr. Moore and CAI.
... I am requesting that you acknowledge and agree on behalf of CAI that Volant's offer of employment to Mr. Moore is not objectionable to CAI and will not violate any agreement to which Mr. Moore may be a party in favor of CAI.

¶ 8 Through counsel, CAI objected. CAI's letter explained that Volant's plan to employ Moore would necessarily result in Moore's disclosure of CAI's trade secrets and other confidential information to Volant:

As you are aware, Mr. Moore has a long employment relationship with CAI and is intimately familiar with all aspects of the business of CAI, including its confidential information, practices, finances, employees, customers, and trade secrets. Mr. Moore's consulting agreement with CAI... acknowledges that all trade secrets and know-how of the Parties are confidential and the sole Property of the Parties.
Employment of Mr. Moore by Volant in any capacity; as consultant, employee, independent contractor or otherwise would necessarily result in his breach of his common law duty not to violate his position of trust and confidence with CAI inasmuch as the companies are competitors and Mr. Moore could not avoid the use of or disregard the infinite knowledge he possesses of CAI confidential information and trade secrets. Such employment would constitute actionable unfair competition by Volant. If Mr. Moore is employed by Volant, CAI will institute legal action to protect its confidential information and trade secrets and to prohibit the unfair competition by Volant that would result from such employment.

¶ 9 Moore responded through counsel to CAI's letter. Moore asserted that CAI held no covenant restricting Moore's ability to work for competitors, and moreover, CAI possessed no confidential information or trade secrets that it had not already shared with Volant by means of the recent negotiation and due diligence process.

¶ 10 After receiving CAI's letter, Volant did not hire Moore. In January 2010, Volant wrote to Moore and expressed its continued interest in hiring him, subject to "CAI releasing both you and Volant of any potential liability related [to] your hiring."

¶ 11 On March 2, 2010, Moore sued CAI and Welch (collectively CAI) claiming that they had unlawfully interfered with his prospects of employment with Volant and had also violated RCW 49.44.010, a statute that imposes criminal penalties for "wilfully and maliciously" blacklisting a worker. In answer, CAI joined Volant as a third party defendant and asserted counterclaims against Moore and Volant, including breach of contract, misappropriation of trade secrets, conversion, and negligent misrepresentation.

¶ 12 CAI and Moore filed cross motions for summary judgment. The court granted CAI's motion and dismissed Moore's suit. The court found Moore had produced no evidence that CAI acted in bad faith or with malice, while CAI had produced evidence to show its letter was an assertion of "a legally protected interest in maintaining its trade secrets from disclosure." This appeal followed.

TORTIOUS INTERFERENCE

¶ 13 This court reviews summary judgment orders de novo, engaging in the same inquiry as the trial court. Cornish Coll. of the Arts v. 1000 Virginia Ltd. P'ship, 158 Wash.App. 203, 216, 242 P.3d 1 (2010), review denied, 171 Wash.2d 1014, 249 P.3d 1029 (2011). Summary judgment is appropriate where there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law. CR 56(c). If the plaintiff fails to make out a prima facie case on the essential elements of his claim, summary judgment for the defendant is appropriate because a complete failure of proof concerning an essential element of the nonmoving party's case necessarily renders all other facts immaterial. *200 Boguch v. Landover Corp., 153 Wash. App. 595, 609, 224 P.3d 795 (2009). We construe the evidence and inferences from the evidence in favor of the nonmoving party. Cornish Coll., 158 Wash.App. at 216, 242 P.3d 1.

Plaintiff's Case

¶ 14 To prevail on a claim of tortious interference with a business expectancy, a plaintiff must prove five elements:

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Moore v. Commercial Aircraft Interiors, LLC, 278 P.3d 197 (Wash. Ct. App. 2012).

278 P.3d 197 (Moore v. Commercial Aircraft Interiors, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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