PTSI, Inc. v. Haley

71 A.3d 304, 35 I.E.R. Cas. (BNA) 1380, 2013 Pa. Super. 130, 2013 WL 2285109, 2013 Pa. Super. LEXIS 751
CourtSuperior Court of Pennsylvania
DecidedMay 24, 2013
StatusPublished
Cited by37 cases

This text of 71 A.3d 304 (PTSI, Inc. v. Haley) 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
PTSI, Inc. v. Haley, 71 A.3d 304, 35 I.E.R. Cas. (BNA) 1380, 2013 Pa. Super. 130, 2013 WL 2285109, 2013 Pa. Super. LEXIS 751 (Pa. Ct. App. 2013).

Opinions

OPINION BY SHOGAN, J.:

Appellant, PTSI, Inc. (“PTSI”), appeals from the order granting summary judgment in favor of Appellees Cole Haley (“Haley”), Anthony Piroli (“Piroli”), and Evolution Sports Institute LLC (“ESI”). For the reasons that follow, we affirm.

PTSI provides sports training to professional and youth athletes under the trade name Power Train Sports Institute. Haley and Piroli are both certified personal trainers. Haley worked for PTSI as its Director of Operations for the Pittsburgh market. Piroli worked for PTSI as a personal trainer. Both men worked at PTSI’s facility in Wexford, Pennsylvania. They were both at-will employees and not subject to non-compete, nondisclosure, or non-solicitation agreements.

Sometime before March 2011 and while still employed by PTSI, Haley and Piroli decided to open their own sports training facility. To that end and before they resigned from PTSI on April 29, 2011, Haley and Piroli incorporated ESI, leased a location in Bridgeville, Pennsylvania as of May [307]*3072, 2011, and informed PTSI clients that they were starting their own business.

In response to the creation of ESI, PTSI filed a multi-count action against Haley, Piroli, and ESI, averring, inter alia, conversion, breach of duty of loyalty, and. breach of fiduciary duty of loyalty. During the course of discovery, PTSI requested sanctions for the personal defendants’ alleged spoliation of evidence, ie., the deletion of electronic files’.' Following an extended discovery period, PTSI and the defendants filed separate motions for summary judgment. The trial'.court denied PTSI’s motion and granted the defendants’ motion. PTSI- appealed. PTSI and the trial court have complied with Pennsylvania Rule of Appellate Procedure- (“Pa. R.A.P.”) 1925. -

On appeal, PTSI presents the following issues:1

A. Whether the trial court, erred in dismissing PTSI’s breach of duty of . loyalty claim.
B. Whether the trial court erred in dismissing PTSI’s breach of fiduciary duty claim.
C. Whether the triál court erred in dismissing'ÍTSI’s conversion claim.
D. Whether the court erred in denying PTSI’s motion for sanctions after violation of court order to preserve evidence by completely erasing critical electronic records.

PTSI’s Brief at 21, 25,'.26, and 29 (full capitalization omitted). ...

PTSI challenges the entry of summary judgment in favor'of ‘ Haley, Piroli', and ESI, which resulted in the dismissal of its claims: ■ The following standards govern our review of the trial court’s order:

A reviewing court may disturb the order of the trial court only where it is established that the court committed an error of law or abused'its discretion. Capek v. Devito [564 Pa. 267], 767 A.2d 1047, 1048, n. 1 ,(Pa.2001). As with all questions rOf law, our review is plenary. Phillips v. A-Best Products Co., 542 Pa. 124, 665 A.2d 1167, 1170 (1995).
In evaluating the trial court’s decision to enter summary judgment, we focus on the legal standard articulated in the summary judgment rule. Pa.R.C.P. 1035.2. The ’ rule states that where there is no genuine issue of m'aterial fact and the moving party is entitled to'relief 'as a matter of law, summary judgment may be entered. Where the non-moving party bears the burden of proof on an ■issue, he may not merely rely on his pleadings or answers in order to survive summary judgment. “Failure of a non-moving party to adduce sufficient evidence'on an issue essential to his ease and on which it bears the burden of proof.... establishes the entitlement of ■the moving-party to judgment as a matter of law.” Young v. Penn. DOT, 560 Pa. 373, 744 A.2d 1276, 1277 (2000). Lastly, we will view the record in the light most favorable to the non-moving party, and all doubts-as to the existence of a genuine issue of material fact must be resolved against the moving party. Pennsylvania State University v. County of Centre, 532 Pa. 142, 615 A.2d 303, 304 (1992).

Murphy v. Duquesne University of the Holy Ghost, 565 Pa. 571, 590, 777 A.2d 418, 429 (2001).

[308]*308PTSI first challenges the dismissal of its breach of duty of loyalty claim against Haley and Piroli. According to PTSI, “[u]nder Pennsylvania law, Haley and Pi-roli owed PTSI a duty of undivided loyalty while employed by PTSI.” PTSI’s Brief at 21 (citing Basile v. H. & R. Block, Inc., 563 Pa. 359, 761 A.2d 1115 (2000)). Specifically, PTSI claims that Haley and Piroli breached their duty of loyalty by improperly soliciting PTSI’s clients while still employed by PTSI. Id. at 21-22. PTSI bases its solicitation claim on the following assertions:

Nearly all of ESI’s initial clientele were former PTSI clients. Further, Haley and. Piroli took affirmative steps prior to their April 29, 2011 resignation date to develop closer relationships with PTSI clients by deviating from PTSI’s policy of rotating clients and personal trainers and instead provided exclusive training services to certain PTSI clients. Prior to leaving PTSI, Haley and Piroli scheduled appointments for PTSI’s clients at ESI for the week of its start-up. Finally, on their April 29, 2011 resignation date, Haley and Piroli took the only copies of more than 40 client training files, depriving . PTSI of the information in those files.

PTSI’s Brief at 22 (citations omitted); see also PTSI’s Reply Brief at 1-6 (regarding breach of duty of loyalty claim). By concluding that “the above evidence demonstrating solicitation by Haley and Piroli of PTSI’s clients while still employed by PTSI was merely ... speculation and conjecture,” PTSI continues, the trial court “improperly supplanted the jury as factfin-der.” PTSI’s Brief at 22.

The Pennsylvania Supreme Court has addressed the solicitation of customers by an employee who seeks to compete with his former employer as follows:

The rule is quite clear that the. solicitation of customers and use of customers lists is permissible unless there is a breach of an express contract or violation of some confidence. There must be some element of fraud or trade secrecy involved [.] [Wiegand Co. v. Harold E. Trent Co., 122 F.2d 920, 924 (3rd Cir. 1941).]
* * *
Even before the termination of the agency he is entitled to make arrangements to compete, except that he cannot properly use confidential information peculiar to his employer’s business and acquired therein. Thus, before the end of his employment, he can properly purchase a rival business and upon termination of employment immediately compete[.] [Restatement (2d) of Agency, § 393 comment e.]
Nor is the fact that the new company may acquire some of the plaintiffs former customers contrary to law.

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Bluebook (online)
71 A.3d 304, 35 I.E.R. Cas. (BNA) 1380, 2013 Pa. Super. 130, 2013 WL 2285109, 2013 Pa. Super. LEXIS 751, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ptsi-inc-v-haley-pasuperct-2013.