Osborn v. Bell Helicopter Textron, Inc.

828 F. Supp. 446, 27 Fed. R. Serv. 3d 408, 1993 U.S. Dist. LEXIS 10954, 1993 WL 293766
CourtDistrict Court, N.D. Texas
DecidedAugust 5, 1993
DocketCiv. A. No. 4:91-CV-118-Y
StatusPublished

This text of 828 F. Supp. 446 (Osborn v. Bell Helicopter Textron, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Osborn v. Bell Helicopter Textron, Inc., 828 F. Supp. 446, 27 Fed. R. Serv. 3d 408, 1993 U.S. Dist. LEXIS 10954, 1993 WL 293766 (N.D. Tex. 1993).

Opinion

ORDER GRANTING MOTION FOR PARTIAL SUMMARY JUDGMENT, GRANTING MOTION FOR SANCTIONS, AND DENYING MOTION TO DISMISS

MEANS, District Judge.

Pending before the Court is a Motion to Dismiss and Motion for Partial Summary Judgment filed by defendant Bell Helicopter Textron, Inc. (“BHT”) on April 7,1992, and a Motion for Sanctions filed by BHT on May 26, 1992. BHT seeks summary judgment or dismissal of Plaintiffs claims under the Texas Free Enterprise and Antitrust Act of 1983, Tex.Bus. & Com.Code §§ 15.01-51 and various common law claims asserted in Plaintiffs First Amended Complaint. After careful consideration of said motions, responses, reply, surreply, and all evidence submitted in support thereof, this Court is of the opinion that the motion for partial summary judgment and motion for sanctions are meritorious and should be GRANTED, and that because the Court looks to matters outside the pleadings, the motion to dismiss should be DENIED.

I. SUMMARY JUDGMENT STANDARD

Pursuant to Fed.R.Civ.P. 56, summary judgment is appropriate if the movant establishes, through the pleadings, depositions, answers to interrogatories, and admissions on file, together with affidavits, that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law. Celotex Corp. v. Catrett, 477 U.S. 317, 324, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986). BHT has supported its motion for summary judgment with pleadings; the affidavit of K. Roger Williams; excerpts from the depositions of George Powell, Ray Kennedy, K. Roger Williams, and William O. Osborn; portions of business records of Schick Shadel Hospital; and various documents of BHT.

When the moving party has carried its summary judgment burden, the respondent “must do more than simply show there is some metaphysical doubt as to the material facts.” Matsushita Elec. Indus. Co. v. Zenith Radio Corp., 475 U.S. 574, 586, 106 S.Ct. 1348, 1355, 89 L.Ed.2d 538 (1986). The respondent must produce evidence, not merely argument, in response to a movant’s properly supported motion for summary judgment. See Foval v. First Nat’l Bank of Commerce, 841 F.2d 126, 129 (5th Cir.1988); Martin v. John W. Stone Oil Distrib., Inc., 819 F.2d 547, 549 (5th Cir.1987). The introduction of a mere scintilla of evidence is not sufficient to avoid summary judgment. Rather, the non-movant must come forward with sufficient evidence that, if admitted at trial, a verdict in his favor would be possible. See Spiller v. Ella Smithers Geriatric Ctr., 919 F.2d 339, 343 (5th Cir.1990). Plaintiff, the non-moving party, has responded to Defendant’s motion by presenting his pleadings on file; excerpts from the depositions of Osborn, George Powell, and K. Roger Williams; and the declaration of William O. Osborn.

[449]*449II. SUMMARY OF THE FACTS

Because this Court set out a detailed description of the facts of this case in its June 24, 1993 memorandum opinion and order, only a summary of the facts is provided here. Defendant BHT, headquartered in Tarrant County, Texas, is in the business of manufacturing, distributing, and servicing helicopters worldwide. Its customers are both military and commercial users of helicopters. BHT employed plaintiff William O. Osborn in its Customer Service and Support Division. Osborn’s job duties required him to plan, budget, staff, train, and direct a worldwide staff of customer support representatives (“CSRs”).

Prior to 1989, BHT employed as many as 46 CSRs throughout the world. In 1987, three persons, including Osborn, shared supervisory responsibility over the CSRs. By June 1989, BHT determined that it could function efficiently with only one supervisor over the CSRs. This decision was made for two reasons: 1) BHT’s continuing efforts to streamline its operations, and 2) the number of CSRs had shrunk to just 23 or 24.

On June 2, 1989, BHT terminated Osborn and retained Vaughn Corneby as the sole supervisor of the CSRs. Shortly after Osborn’s separation from BHT, he formed two businesses, Worldwide Helicopters, Inc. (“Worldwide”) and Centralized Procurement Services. Each business was intended to market products and services to owners and prospective purchasers of helicopters. Osborn then contacted CSRs who were still employed by BHT and sought to enlist them as sales representatives on behalf of his own company.

Osborn’s communications to the CSRs were sent without BHT’s knowledge or approval and were transmitted via BHT’s “Quik-Com” computer system. Quik-Com is a communications network, established at Osborn’s initiative while he was working at BHT, to transmit and access messages worldwide at BHT-established terminals. During August and September 1989, Osborn admits sending at least fifteen to twenty unauthorized communications to CSRs through the Quik-Com system in the Middle East, Far East, and elsewhere, for the purpose of inducing BHT employees to breach their duty of loyalty to BHT and represent Osborn’s new business. In October 1990, BHT learned of Osborn’s unauthorized communications and notified its CSRs that company policy prohibited them from representing other interests while dealing with BHT customers.

Osborn re-applied for a position with BHT in November 1990, but did not receive an offer of employment. This Court issued summary judgment against Plaintiffs age discrimination and retaliation claims in a June 24, 1993 opinion and order. Remaining are Plaintiffs antitrust and common law claims, as well as Defendant’s counterclaims (only Plaintiffs claims are addressed in this opinion).

III. NO GENUINE ISSUE OF MATERIAL FACT IN DISPUTE

A. Antitrust Claim

Osborn purports to bring a claim against BHT under the Texas Free Enterprise and Antitrust Act of 1983, Tex.Bus. & Com.Code § 15.01-.51, apparently for damages suffered by the businesses in which he holds or held an ownership interest. Osborn alleges that BHT “enter[ed] into and attempted] to enforce an agreement not to compete which is a restraint of trade.” Osborn’s claim, however, fails for several reasons. First, the law is clear that Osborn lacks standing to bring an antitrust claim on behalf of Worldwide. Solinger v. A & M Records, Inc., 718 F.2d 298, 299 (9th Cir. 1983). Even Assuming that Worldwide, a business in which Osborn has or held ownership interests, were in competition with BHT, this corporation, not Osborn personally, would be the party suffering any antitrust injury for which a suit might be brought. Shareholders, officers, and directors cannot personally assert antitrust claims against a corporation’s competitors.

The convenience and immunities that arise from doing business through corporate entities carry with them the cost of having these corporate entities seek their remedies in court for injuries to their business

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828 F. Supp. 446, 27 Fed. R. Serv. 3d 408, 1993 U.S. Dist. LEXIS 10954, 1993 WL 293766, Counsel Stack Legal Research, https://law.counselstack.com/opinion/osborn-v-bell-helicopter-textron-inc-txnd-1993.