Photon Interactive UK, Ltd. v. Robinson

2024 Ohio 5465
CourtOhio Court of Appeals
DecidedNovember 20, 2024
Docket24 CAE 03 0017
StatusPublished

This text of 2024 Ohio 5465 (Photon Interactive UK, Ltd. v. Robinson) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Photon Interactive UK, Ltd. v. Robinson, 2024 Ohio 5465 (Ohio Ct. App. 2024).

Opinion

[Cite as Photon Interactive UK, Ltd. v. Robinson, 2024-Ohio-5465.]

COURT OF APPEALS DELAWARE COUNTY, OHIO FIFTH APPELLATE DISTRICT

JUDGES: PHOTON INTERACTIVE UK : Hon. W. Scott Gwin, P.J. LIMITED, ET AL : Hon. John W. Wise, J.. : Hon. Craig R. Baldwin, J. Plaintiffs-Appellants : : -vs- : Case No. 24 CAE 03 0017 : JERRY ROBINSON : : OPINION Defendant-Appellee

CHARACTER OF PROCEEDING: Appeal from the Delaware County Court of Common Pleas, Case No. 22 CV H 07 0374

JUDGMENT: Affirmed

DATE OF JUDGMENT ENTRY: November 20, 2024

APPEARANCES:

For Plaintiffs-Appellants For Defendant-Appellee

MYRON MOSKOVITZ JOHN MARSH 90 Crocker Avenue 10 West Broad Street. Suite 2100 Piedmont, CA 94611 Columbus, OH 43215 [Cite as Photon Interactive UK, Ltd. v. Robinson, 2024-Ohio-5465.]

Gwin, P.J.

{¶1} Appellants appeal the February 20, 2024, judgment entry of the Delaware

County Court of Common Pleas granting appellee’s motion for summary judgment.

Facts & Procedural History

{¶2} Appellee Jerry Robinson was employed at appellants Photon International

UK, Limited, and Photon Infotech (collectively, “Photon”) from 2006 to 2020. Photon is a

California company with its principal place of business in Dallas, Texas. Photon is a

digital-technology company that provides project-based services and information-

technology-support services to clients. Photon employees develop mobile and web-

based applications for clients, and sometimes place employees on-site at client facilities.

Sales staff for Photon learn the business of existing clients and identify new projects

wherein Photon could provide the client with additional staffing and new applications.

{¶3} Appellee initially worked in India for Photon. However, in 2012, appellee

moved to the United States when he moved into management of strategic accounts.

From 2017 to 2020, appellee was the Vice-President of Strategic Accounts at Photon.

During this time, appellee managed Photon’s “customer relationship” with two “strategic”

customer accounts located in Ohio, Bank 1 and Bank 2. Photon placed software

developers at Bank 1’s facilities in Ohio, Delaware, and New York, and placed software

developers at Bank 2 facilities in the U.S. and India. Photon never placed workers in

either Africa or Latin America, in-person or remotely.

{¶4} Sometime in mid-2020, Sachin Bhagwat, a former colleague of appellee’s

at Photon, recruited appellee to work at a company named Andela. In September of

2020, Andela interviewed appellee. Andela is a staffing company that provides software Delaware County, Case No. 24 CAE 03 0017 3

developers to the client via a specially developed client portal powered by an algorithm

developed by Andela. Developers work as independent contractors of the client, work

remotely from their homes, and are primarily located in Africa and Latin America. Andela

does not place workers on site at clients’ facilities and does not assume responsibility for

projects or involve itself in work performed by the software engineers. In text messages

dated September 9, 2020, Bhagwat and appellee briefly discussed the possibility of

soliciting business from Bank 1 and 2. However, at that point in time, appellee still worked

for Photon.

{¶5} Appellee resigned his position at Photon on October 30, 2020. He initially

joined Andela in 2020 as a client partner, supporting one large company account with a

company that he never had any dealings with while working for Photon. In July of 2022,

appellee became the Vice-President of Enterprise Sales at Andela. His customers at

Andela do not overlap with his former clients he worked with while working for Photon.

Appellee describes Andela’s business as matchmaking between clients and talent located

in Africa or Latin America via a client portal that Andela designed.

{¶6} Photon filed a complaint against appellee on July 27, 2022, for breach of

contract, unjust enrichment, and seeking a preliminary injunction. Photon sought to enjoin

and collect damages for appellee’s alleged violation of a non-compete agreement

contained in a document dated October 1, 2019, and entitled “Photon Interactive UK

Limited Stock Option Agreement” (“Agreement”).

{¶7} The relevant portion of the Agreement provides as follows:

In consideration of the Option, the Participant agrees and covenants not to: Delaware County, Case No. 24 CAE 03 0017 4

Contribute his or her knowledge, directly, or indirectly, in whole or in part,

as an employee, officer, owner, manager, advisor, consultant, agent,

partner, director, shareholder, volunteer, intern or in any other similar

capacity to an entity engaged in the same or similar business as the

Company and its Affiliates (the “Group”), including those engaged in the

business of designing, developing, and marketing software for mobile or

Web applications or providing skilled software developers to perform client

software projects, in each case in the United States of America, for a period

of two (2) years following the Participant’s termination of Continuous

Service * * *.

{¶8} The Agreement contains a choice of law provision that specifically provides

that Section 11, the section containing the non-compete provision, “shall be governed by

the laws of the State of Texas if the Participant primarily works in the United States * * *.”

There is no dispute that appellee primarily works in the United States, and both parties

agree that Texas law governs in this case.

{¶9} The magistrate conducted a hearing on Photon’s motion for preliminary

injunction. Multiple people testified at the hearing, including Hariprasad Ramakrishnan,

the Executive Vice-President at Photon, Photon’s Chief Financial Officer Sanjiv Lochan,

appellee, and Bruce Tizes, Andela’s Vice-President of Strategy.

{¶10} The magistrate denied the preliminary injunction on December 29, 2022,

finding: (1) Andela has a different business model than Photon because Andela

exclusively operates in the IT staffing business and workers are independent contractors

who work remotely for Andela customers, (2) Photon has no evidence that appellee Delaware County, Case No. 24 CAE 03 0017 5

solicited or serviced any of Photon’s customers on behalf of Andela, (3) revenue for Bank

2 actually increased after appellee’s resignation, and (4) while revenue for Bank 1

decreased immediately after appellee’s resignation, it increased several months later.

The trial court adopted the magistrate’s decision denying the preliminary injunction on

March 21, 2023.

{¶11} Appellee filed a motion for summary judgment on December 15, 2023.

Photon filed a memorandum contra on January 19, 2024, arguing (1) there is a genuine

issue of material fact whether Photon and Andela are competitors and (2) as a matter of

law (applying Texas law) the non-compete clause was not overbroad. Photon attached

to the memorandum contra the affidavit of Sanjiv Lochan, appellant’s Chief Financial

Officer, stating there are several technology companies that are not “engaged in the same

or similar business” as Photon and its affiliates, and that he “reviewed” documents from

Andela, including transcripts of text messages between appellee and Bhagwat. Photon

also attached to the memorandum in opposition multiple deposition transcripts, the

transcript of the preliminary injunction hearing, the stock option agreement, and several

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2024 Ohio 5465, Counsel Stack Legal Research, https://law.counselstack.com/opinion/photon-interactive-uk-ltd-v-robinson-ohioctapp-2024.