Polyone Corp. v. Kutka

67 F. Supp. 3d 863, 2014 U.S. Dist. LEXIS 164337, 2014 WL 6673858
CourtDistrict Court, N.D. Ohio
DecidedNovember 24, 2014
DocketCase No. 1:13 CV 2717
StatusPublished
Cited by2 cases

This text of 67 F. Supp. 3d 863 (Polyone Corp. v. Kutka) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Polyone Corp. v. Kutka, 67 F. Supp. 3d 863, 2014 U.S. Dist. LEXIS 164337, 2014 WL 6673858 (N.D. Ohio 2014).

Opinion

MEMORANDUM OPINION AND ORDER OF PRELIMINARY INJUNCTION

DONALD C. NUGENT, District Judge.

This matter comes before the Court upon the Report and Recommendation of Magistrate Judge William H. Baughman, Jr. The Report and Recommendation (ECF #90), submitted on October 31, 2014, recommends that Plaintiffs Motion for a Preliminary Injunction (ECF #21) be granted in part as agreed to by Defendant Kutka except for the demand that Mr. Kutka by enjoined from continuing his employment at PolyMax. Magistrate Judge Baughman found that Plaintiff did not establish a strong case with clear and convincing evidence that it will be irreparably damaged without an injunction preventing Mr. Kutka from continuing his employment at PolyMax as vice president of operations.

Plaintiff has filed an objection to the Report and Recommendation asking this Court to enter a preliminary injunction enjoining Mr. Kutka from working for or otherwise providing services on behalf of PolyMax until trial and a ruling on Plaintiffs motion for a permanent injunction. Plaintiff asserts that the Magistrate Judge’s decision is based upon his acceptance of Mr. Kutka’s representations that he has returned all PolyOne information and that he will abide by his obligations not to disclose, use or keep PolyOne confidential and trade secret information in his employment with PolyMax. Plaintiff contends that Mr. Kutka’s word cannot be trusted.

Standard of Review for a Magistrate Judge’s Report and Recommendation

The applicable district court standard of review for a magistrate’s report and recommendation depends upon whether objections were made to that report. When objections are made to a report and recommendation of a magistrate judge, the district court reviews the case de novó. Fed. R. Civ. P. 72(b) provides this standard of review. It states, in pertinent part, the following:

The district judge to whom the case is assigned shall make a de novo determination upon the record, or after additional evidence, of any portion of the magistrate judge’s disposition to which specific written objection has been made in accordance with this rule. The district judge may accept, reject, or modify the recommended decision, receive further evidence, or recommit the matter to the magistrate judge with instructions.

Accordingly, this Court will review the Report and Recommendation, to which timely objections have been filed, de novo. See Dacas Nursing Support Sys., Inc. v. NLRB, 7 F.3d 511 (6th Cir.1993).

Conclusion

The Court has reviewed the Réport and Recommendation of Magistrate Judge Baughman de novo. See Massey v. City of Ferndale, 7 F.3d 506 (6th Cir.1993). The Court has also considered all of the pleadings, affidavits, motions, and filings of the parties. After careful evaluation of the record, the Report and Recommendation, and the objections filed by Plaintiff, this Court finds the Report and Recommendation issued by Magistrate Judge Baugh-man to be well supported and correct.

Accordingly, the Court hereby ADOPTS the Report and Recommendation issued by .Magistrate Judge Baughman and grants Plaintiffs Motion for a Preliminary Injunction with some modifications as follows:

1. Mr. Kutka is enjoined from using or disclosing any of PolyOne’s confidential or [866]*866proprietary trade secrets, or information obtained in violation of the Computer Fraud and Abuse Act;

2. Mr. Kutka is compelled to perform all the covenants in the non-compete agreement;

3. Mr. Kutka is to “preserve and return to PolyOne any and all property of PolyOne;”

4. Mr. Kutka will not contact any Poly-One customer or potential customer until after the trial in this action has been completed; and

5. Mr. Kutka will remain in his present role as vice president of operations-and not assume a sales or product development role-until the trial in this matter has been completed.1

A trial in this matter is set for January 5, 2015 at 8:30 a.m.

IT IS SO ORDERED.

REPORT & RECOMMENDATION

WILLIAM H. BAUGHMAN, JR., United States Magistrate Judge.

Introduction

Before me by referral1 in this diversity action by PolyOne Corporation against its former employee, Joseph Kutka, and others (the PolyMax defendants), is Poly-One’s motion for a preliminary injunction.2 In the underlying matter, PolyOne raises various claims arising from Kutka’s business relationship with the PolyMax defendants and here seeks to enjoin Kutka from continuing that relationship, as well as other relief.3 Kutka, in his answer, opposes the request for a preliminary injunction.4 The parties have participated in oral arguments on the motion.5 Following that argument, PolyOne and Kutka have submitted proposed findings of fact and conclusions of law.6 Moreover, as concerns PolyOne’s proposed findings, the Po-lyMax defendants have filed an objection7 that PolyOne has moved to strike or, in the alternative, to file a response.8 In addition, PolyOne and Kutka have submitted joint stipulations of fact.9

For the reasons that follow, I will recommend that PolyOne’s motion for a preliminary injunction be granted as modified below.

Facts

The facts essential to adjudicating the motion for a preliminary injunction are briefly stated and mostly not in dispute.

[867]*867On November 18, 2013, Kutka left Poly-One and accepted employment at PolyMax USA.10 The position at PolyMax USA that he took then and still holds is Vice President of Operations.11 Immediately prior to joining PolyMax USA, Kutka was employed as a business manager for healthcare at PolyOne Geon12 under the terms of an employment agreement signed by Kut-ka and PolyOne in 2011.13

That employment agreement contains restrictions on competition with PolyOne after Kutka’s employment with PolyOne came to an end. The agreement states at paragraph 5 that Kutka was prohibited from competing with PolyOne after concluding his employment there as set forth in an attachment to the employment agreement, which attachment provides different restrictions, such as geographic and temporal, based on the different kinds of jobs the employee may have held at Poly-One at the time he left.14 The agreement further states at paragraph 6 that Kutka was also prohibited for one year from “directly or indirectly” interfering with Poly-One’s business by “hiring, raiding or soliciting” PolyOne’s employees, consultants, agents, representatives or vendors.15 It further states at paragraph 7 that Kutka would be in violation of the agreement if he took any prohibited action either directly as an individual, or indirectly as a member of a group.16

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67 F. Supp. 3d 863, 2014 U.S. Dist. LEXIS 164337, 2014 WL 6673858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/polyone-corp-v-kutka-ohnd-2014.