Premier Associates, Ltd. v. Loper

778 N.E.2d 630, 149 Ohio App. 3d 660
CourtOhio Court of Appeals
DecidedOctober 11, 2002
DocketC.A. Case No. 2002 CA 8, T.C. Case No. 99 CV 00217.
StatusPublished
Cited by25 cases

This text of 778 N.E.2d 630 (Premier Associates, Ltd. v. Loper) 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
Premier Associates, Ltd. v. Loper, 778 N.E.2d 630, 149 Ohio App. 3d 660 (Ohio Ct. App. 2002).

Opinion

Wolff, Presiding Judge.

{¶ 1} Premier Associates, Ltd. (“Premier”) appeals from a judgment of the Champaign County Court of Common Pleas, which granted summary judgment on behalf of Thomas E. Loper (“Loper”). Loper has also filed a cross-appeal.

*664 {¶ 2} The undisputed facts of this case are as follows.

{¶ 3} Loper, a psychologist, had been employed by Geri-Tech, Inc. (“Geri-Tech”), which was owned by Rita Baumeister. Upon Rita’s death in September 1995, Geri-Tech was purchased by Premier, owned by her husband Leroy Baumeister (“Baumeister”). Premier contracted with nursing homes to provide psychological services to their residents. It employed psychologists, such as Loper, to provide these services. To this end, Loper entered into an employment contract with Premier on September 18, 1995, the • same day on which his employment with Geri-Tech was terminated. The contract between Loper and Premier contained ■ several clauses relevant to this appeal: a covenant not to compete, an arbitration clause, and a controlling-law provision.

{¶4} On June 9, 1998, Baumeister apparently decided to close Premier. According to his daughter, Melinda Langston (“Langston”), also the company’s director of finance, Baumeister ordered her to “shut things down.” On June 10, 1998, Premier sent letters to all of its employees, including Loper, which stated:

{¶ 5} “This letter is to inform you that your employer, PREMIER Associates, Ltd., will cease business operations and begin winding up its corporate affairs effective immediately. According to your employment contract, paragraph 11(c) [sic], this letter shall serve as PREMIER Associates, Ltd.’s intent to terminate your employment contract. As that paragraph requires ten (10) days notice, your employment shall cease at close of business day on June 22,1998.”

{¶ 6} The only employees who did not receive this letter were those few necessary to finish winding up the financial affairs of the company. Pursuant to Loper’s employment contract, he was entitled to thirty days’ notice for termination without cause; however, under paragraph 9(c) of the employment contract, Premier could terminate him with only ten days’ notice in the event that it made a decision to “terminate its business and liquidate its assets.” Premier invoked this provision and terminated Loper and its other employees with only ten days’ notice.

{¶ 7} Premier also sent letters to its nursing home customers terminating those contracts. These letters stated: “This letter shall serve as Premier Associates, Ltd.’s thirty (30) day notice of intent to terminate its services with your facility. Services from Premier Associates, Ltd. shall cease on July 12, 1998.” This letter was sent to all of the approximately eighty nursing homes that were under contract with Premier in June 1998.

{¶ 8} Premier also instructed its director of marketing to “pitch” all of her marketing materials and customer files. The Regional Chief Administrative Officer for Eastern Ohio, Glyn Borden (“Borden”), was ordered to throw away all of her personnel files. Furthermore, Borden and the Regional Chief Administra *665 tive Officer for Western Ohio, Jeff Weiner (“Weiner”), were directed to tell the psychologists that their employment was immediately terminated and that the company would not seek to enforce the covenants not to compete if the psychologists wished to continue providing services to the nursing homes. According to Loper, he was so advised by Weiner and thereafter arranged to continue providing services to the nursing homes where he had previously worked.

{¶ 9} The following week, Premier sent a letter to its psychologists, which stated:

{¶ 10} “If you have any interest in continuing to provide services directly to the skilled nursing facilities in which you currently operate, then you may contact the corporate office to discuss this matter further before June 30, 1998.”

{¶ 11} This letter was apparently the result of a discussion between Baumeis-ter, Langston, and Premier’s attorney, Jeff Rengle (“Rengle”), in which the three discussed that the covenants may have some value to the company. Baumeister was apparently beginning to entertain ideas of selling the company at this point rather than shutting down. Loper did not respond to the letter. Rengle sent another letter to former employees of Premier, including Loper, on July 27,1998, advising them that Premier was still a “viable” company and demanding that they cease and desist violating the covenant not to compete. This letter also expressed an interest in “continuing” Loper’s employment with Premier.

{¶ 12} Premier did not go out of business. Rather, Baumeister sold the business to Jackson Properties, Ltd., a limited liability company owned by Rengle. The name of the company did not change. Premier filed a complaint against Loper in the Erie County Court of Common Pleas on July 29, 1999, alleging that Loper had breached the employment agreement between the parties by violating the covenant not to compete and a covenant not to disclose confidential information. The complaint also alleged that Loper had taken trade secrets of Premier in violation of R.C. 1333.61 and 1333.81 and had misappropriated Premier’s insurance and Medicaid billing number. Among other things, Premier requested that Loper be enjoined from competing with Premier.

{¶ 13} Loper filed a motion to transfer venue on September 9, 1999. On November 30, 1999, the Erie County Court of Common Pleas granted Loper’s motion and transferred the case to the Champaign County Court of Common Pleas. On December 20, 1999, Loper filed a motion requesting attorney fees and costs accrued in connection with the motion to transfer venue. The trial court denied that motion on June 27, 2001.

{¶ 14} Loper filed a motion for summary judgment on December 22, 2000, with respect to all four claims in Premier’s complaint. The trial court denied that motion on June 27, 2001. Following some discovery, Loper filed a renewed *666 motion for summary judgment on January 9, 2002. That motion addressed only Premier’s argument that Loper had violated the covenant not to compete. Premier responded on January 24, 2002, and Loper filed a reply on January 29, 2002. On January 30, 2002, the trial court granted Loper’s motion for summary judgment, dismissing all four claims.

{¶ 15} Premier appeals, raising two assignments of error.

{¶ 16} “I. The Champaign County Common Pleas Court erred when it granted summary judgment to Tom E. Loper.”

{¶ 17} Our review of the trial court’s decision to grant summary judgment is de novo. See Helton v. Scioto Cty. Bd. of Commrs. (1997), 123 Ohio App.3d 158, 162, 703 N.E.2d 841. Civ.R. 56(C) provides that summary judgment may be granted when the moving party demonstrates that (1) there is no genuine issue of material fact; (2) the moving party is entitled to judgment as a matter of law; and (3) viewing the evidence most strongly in favor of the nonmoving party, reasonable minds can come to but one conclusion and that conclusion is adverse to the party against whom the motion for summary judgment is made. See State ex rel. Grady v. State Emp.

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Cite This Page — Counsel Stack

Bluebook (online)
778 N.E.2d 630, 149 Ohio App. 3d 660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/premier-associates-ltd-v-loper-ohioctapp-2002.