New Castle Industries Inc. v. Behm

40 Pa. D. & C.4th 544, 1998 Pa. Dist. & Cnty. Dec. LEXIS 8
CourtPennsylvania Court of Common Pleas, Lawrence County
DecidedDecember 23, 1998
Docketno. 40219 of 1996, EQ
StatusPublished

This text of 40 Pa. D. & C.4th 544 (New Castle Industries Inc. v. Behm) is published on Counsel Stack Legal Research, covering Pennsylvania Court of Common Pleas, Lawrence County primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Castle Industries Inc. v. Behm, 40 Pa. D. & C.4th 544, 1998 Pa. Dist. & Cnty. Dec. LEXIS 8 (Pa. Super. Ct. 1998).

Opinion

PRATT, J.,

The underlying dispute between the plaintiff and the defendants arises out of the defendants’ access to certain confidential information of the plaintiff. Defendant Jay Behm was employed by plaintiff as a sales engineer, from June 15, 1992 until his voluntary resignation on October 2, 1995. During his employment, defendant Jay Behm made sales calls on existing and potential customers to solicit orders and promote the products of the plaintiff. Defendant Jennifer B. Behm began working for the plaintiff, on an independent contractor basis, as a computer consultant on August 6, 1992 and ended her relationship on July 21, 1995. Both defendants had possession of, or access to, various trade secrets and customer information, which was the confidential property of plaintiff.

PROCEDURAL HISTORY

The plaintiff initiated its cause of action by a complaint in equity on June 13, 1996, seeking to enjoin [546]*546the defendants from the unlawful conversion and misuse of the plaintiff’s trade secrets and other confidential information and defendants’ tortious interference with the plaintiff’s existing and prospective business relations and unfair competition; and, seeking relief from a civil conspiracy to commit these acts. The plaintiff also sought replevin relief regarding its confidential customer and trade secret information which was in the defendants’ possession. Simultaneously with the filing of its complaint, and in response to a motion by plaintiff, entitled “motion for order of court directing preservation of documents, software and things by defendants” (motion to preserve), but without notice to defendants, the court entered an order, dated June 13, 1996. The order directed that the defendants preserve, maintain, and protect in their present state from destruction, modification or alteration, each and any of the documents, software and things described in plaintiff’s “request for production of documents, software and things,” previously served upon the defendants, which were in the possession, custody or control of the defendants, pending disposition of the plaintiff’s complaint in equity. The court further ordered that it would conduct a hearing of the motion to preserve at the same time of the hearing of plaintiff’s motion for expedited discovery, scheduled for June 21, 1996. On June 13, 1996, the defendants were properly served with plaintiff’s complaint and various other pleadings, as well as the plaintiff’s motion to preserve and ensuing order of court, dated June 13, 1996.

On June 21, 1996, as scheduled, the court heard arguments of the plaintiff’s motion for expedited discovery and, by appropriate order, established a discovery schedule, which included inspection and examination of the defendants’ computers, hardware and software, [547]*547by Price Waterhouse on behalf of the plaintiff. Following the inspection on June 24, 1996, and the taking of the depositions of the defendants on June 27, 1996, the plaintiff filed its “motion for discovery sanctions and petition for adjudication of civil contempt for violation of order directing preservation of documents, software and things” (motion for sanctions and contempt), alleging that the defendants violated the court’s June 13, 1996 order by deleting the subject files from their computer after they were appropriately served with notice of the court’s order of June 13, 1996.

Subsequent to a full evidentiary hearing on May 23, 1997, the court issued an order on December 30, 1997, granting the plaintiff’s motion for sanctions and contempt, and adjudicating the defendants in indirect civil contempt of court. The court found that the defendants had intentionally and willfully violated the court’s June 13, 1996 order by deleting files from their computer’s memory containing the plaintiff’s confidential business information and discarding a “hard copy” thereof printed from the defendants’ computer’s memory. As discovery sanctions, the court ordered the defendants to pay the plaintiff a fine of $50,000. Plaintiff’s costs, and reasonable attorney’s and expert fees incurred by the plaintiff, due to the defendants’ noncompliance with the court’s order of June 13, 1996, were also imposed.

On January 27, 1998, the court granted defendants’ motion to stay time for appeal and stayed the time for appeal of the court’s contempt order of December 30, 1997, until such time as the court could dispose of defendants’ objections to the amount plaintiff claimed for attorney’s and expert fees and costs.

After a hearing, the court, by its June 23, 1998 order, awarded the plaintiff $25,000 as reasonable attorney’s [548]*548and expert fees and costs generated by the plaintiff in prosecuting its motion for sanctions and contempt. The defendants, thereafter, filed a timely notice of appeal from this court’s December 30,1997 and June 23,1998 orders and a concise statement of matters complained of on appeal. This opinion is issued in satisfaction of Pa.R.A.P. 1925(a).

DISCUSSION

The court will first address those objectives raised by defendants regarding the court’s contempt order of December 30, 1997, and then those issues relevant to the court’s order of June 23, 1998, awarding plaintiff reasonable attorney’s and expert fees, and costs.

I.

Civil Contempt

The purpose of a proceeding for indirect civil contempt is remedial, and sanctions may be imposed to either coerce the defendant into compliance or compensate the complainant for losses sustained as a result of the defendant’s actions. Township of South Fayette v. The Boys’ Home, 31 Pa. Commw. 254, 263, 376 A.2d 663, 667 (1977). In determining whether to adjudicate a defendant in indirect civil contempt, the court need only resolve whether the defendant, with prior notice, intentionally and willfully violated an order of the court. East Caln Township v. Carter, 440 Pa. 607, 611, 269 A.2d 703, 705 (1970). It is under the umbrella of this standard that this court, in the instant case, must review the defendants’ objections regarding the court’s December 30, 1997 order adjudicating defendants in indirect civil contempt of court.

[549]*549A.

The defendants assert that paragraph 3 of the court’s December 30, 1997 contempt order was erroneous, as the court should have granted the defendants’ oral motion in the nature of an involuntary compulsory nonsuit (motion for compulsory nonsuit) at the close of the plaintiff’s case. The standard of review for the entry of a compulsory nonsuit is well settled:

“[A compulsory nonsuit] is proper only if the fact-finder, viewing all of the evidence in favor of the plaintiff could not reasonably conclude that the essential elements of a cause of action have been established. When a nonsuit is entered, the lack of evidence to sustain the action must be so clear that it admits no room for fair and reasonable disagreement. A compulsory nonsuit can only be granted in cases where it is clear that a cause of action has not been established and the plaintiff must be given the benefit of all favorable evidence along with all reasonable inferences of fact arising from the evidence, resolving any conflict in favor of the plaintiff. The fact-finder, however, cannot be permitted to reach a decision on the basis of speculation or conjecture.” Shannon v. McNulty,

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Bluebook (online)
40 Pa. D. & C.4th 544, 1998 Pa. Dist. & Cnty. Dec. LEXIS 8, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-castle-industries-inc-v-behm-pactcompllawren-1998.