Omicron Systems, Inc. v. Weiner

860 A.2d 554, 2004 Pa. Super. 389, 2004 Pa. Super. LEXIS 3424
CourtSuperior Court of Pennsylvania
DecidedOctober 7, 2004
StatusPublished
Cited by90 cases

This text of 860 A.2d 554 (Omicron Systems, Inc. v. Weiner) is published on Counsel Stack Legal Research, covering Superior Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Omicron Systems, Inc. v. Weiner, 860 A.2d 554, 2004 Pa. Super. 389, 2004 Pa. Super. LEXIS 3424 (Pa. Ct. App. 2004).

Opinion

*557 OLSZEWSKI, J.

¶ 1 Fred Weiner (appellant) appeals the judgment of the Court of Common Pleas of Philadelphia County (Cohen, J.), finding that appellant violated the non-compete and confidentiality agreements with Omicron Systems (appellee). The trial court awarded Omicron $238,000.00 in liquidated damages and $185,916.50 in attorney’s fees. We affirm the $238,000.00 award and reverse the $185,916.50 award.

¶ 2 In 1987, Omicron Systems, an information technology company, hired Fred Weiner. In 1993, in connection with an “Executive Management Plan,” Weiner signed a document entitled “Confidentiality, Discoveries, Restrictive Covenant and Release Agreement,” which, inter alia, prohibited him from disclosing confidential Omicron materials and from leaving Omicron to work for a competitor company.

¶ 3 In 2001, Proscape Technologies and Mr. Weiner entered into negotiations for employment. Ultimately, Mr. Weiner left Omicron and began working for Proscape in July of 2001. Omicron promptly filed a writ of summons in August of 2001, followed by a civil complaint alleging violations of the above agreement in November of 2001.

¶ 4 In December of 2001, Omicron, Pros-cape, Mr. Weiner, Randy Pritzker, and Valerie DeRusso entered into a “Confidentiality Agreement and Release”, which permitted the discovery of confidential Pros-cape information by Omicron and released Proscape of all liability from legal action arising out of Mr. Weiner’s employment with Proscape.

¶ 5 After a bench trial in April of 2003, the trial court found that Mr. Weiner breached the 1993 agreement, ordered Mr. Weiner to pay damages in the amount of $238,000.00 1 to Omicron, as well as attorney’s fees and costs in the amount of $185,916.50. 2

¶ 6 Mr. Weiner raises six issues on appeal: (1) whether Omicron proved that it suffered actual harm as a result of Mr. Weiner’s move to Proscape; (2) whether the trial court improperly used “equitable accounting” in calculating the award of damages; (3) whether the award of attorney’s fees was proper; (4) whether the non-compete clause was enforceable, and if so, whether the clause was breached; (5) whether Mr. Weiner breached his confidentiality obligations to Omicron; and, (6) whether Omicron waived any and all claims against Mr. Weiner by signing the December 2001 “Confidentiality Agreement and Release.” Appellant’s brief, at ii.

¶ 7 Our standard of review in equity matters is well settled.

In equity matters, appellate review is based on a determination by the appellate court of such questions as whether (1) sufficient evidence supports the findings of the judge; (2) the factual inferences and legal conclusions based on those findings are correct; [and] (3) there has been an abuse of discretion or an error of law. Generally, in an appeal from a trial court sitting in equity, the standard of review is rigorous. The function of this Court on an appeal from an adjudication in equity is not to substitute its view for that of the lower tribunal; our task is rather to determine whether “a judicial mind, on due consideration of all the evidence, as a whole, *558 could reasonably have reached the conclusion of that tribunal.”

Hess v. Gebhard & Co., 570 Pa. 148, 808 A.2d 912, 920 (2002) (citations omitted). Further, our review is plenary when the question is one of law. Id. (citation omitted).

¶8 We begin with Mr. Weiner’s sixth claim.

OMICRON/PROSCAPE RELEASE AGREEMENT

¶ 9 Mr. Weiner argues that the December 2001 release agreement not only released Proscape from all liability arising from his change of employment, but released Mr. Weiner as well.

¶ 10 The clause at issue in the release agreement is paragraph XIV.

XIV. Release. Based upon the representation of Timothy Healy that as of June 29, 2001, he, and, to the best of his knowledge, Proscape Management, were not aware of the existence, or terms and conditions of any agreement between Omicron and Mr. Weiner containing restrictive covenant and/or confidentiality language that would prevent Mr. Weiner from working for Proscape, Omicron and PBR 3 , for good and sufficient consideration, do hereby remise, release and forever discharge Proscape, from any and all claims, causes of action, suits, judgments, rights, liability, damages and demands of any kind whatsoever, in law or equity, known or unknown that Omicron and PBR now have, ever had, or may at any time hereafter have against Pros-cape, arising out of or in any way connected with or related to Weiner’s employment contract with Omicron and PBR, Proscape’s employment of Weiner or any actions taken by Weiner as an employee of Proscape, including but not limited to, claims under any federal, state or local law or regulation, or under any common law theory, including but not limited to, intentional or negligent (tortuous) interference with contractual/business relations, breach of contract, or any other common law theory, through September 13, 2001. Omicron acknowledges and agrees that this Release covers any and all claims it could assert against Proseape for tortuous interference with contractual relations relating to Proscape’s employment of Mr. Weiner, and represents that it will not file such a claim at anytime in the future.

Confidentiality Agreement and Release (hereinafter “Proscape Agreement”), dated December 2001, at 11-12.

¶ 11 Mr. Weiner’s argument that “Pros-cape,” as used in this agreement, includes him, and that Omicron waived its claims against him has superficial appeal. At the beginning of the agreement, Proscape Technologies includes its “respective parents, affiliates, subsidiaries and related organizations, its and their officers, directions, employees, trustees, agents, representatives, predecessors, successors and assigns.” Proscape Agreement, at 1 (emphasis added). Because Mr. Weiner was an employee of Proscape at the time Omicron signed the agreement, it appears that Omicron did waive its claims against Mr. Weiner for breach of contract.

¶ 12 A more thorough reading of the entire agreement, however, indicates otherwise.

In Pennsylvania, it is well settled that the effect of a release is to be determined by the ordinary meaning of its language. Parties with possible claims *559 may settle their differences upon such terms as are suitable to them. They may agree for reasons of their own that they will not sue each other, or anyone else, for the event in question. When the parties to a release agree not to sue each other or anyone else for a given event, this can effect a discharge of others who have not contributed consideration for the release. This is trae even if the language of the release is general, releasing, for example, “any and all other persons” rather than specifically naming the persons released.

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Bluebook (online)
860 A.2d 554, 2004 Pa. Super. 389, 2004 Pa. Super. LEXIS 3424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/omicron-systems-inc-v-weiner-pasuperct-2004.