Qorvis Communications, LLC v. Wilson

549 F.3d 303, 2008 U.S. App. LEXIS 24376, 91 Empl. Prac. Dec. (CCH) 43,403, 2008 WL 5077823
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 3, 2008
Docket07-1967
StatusPublished
Cited by18 cases

This text of 549 F.3d 303 (Qorvis Communications, LLC v. Wilson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Qorvis Communications, LLC v. Wilson, 549 F.3d 303, 2008 U.S. App. LEXIS 24376, 91 Empl. Prac. Dec. (CCH) 43,403, 2008 WL 5077823 (4th Cir. 2008).

Opinion

Affirmed by published opinion. Judge NIEMEYER wrote the opinion, in which Judge AGEE and Judge VOORHEES joined.

OPINION

NIEMEYER, Circuit Judge:

By order dated August 20, 2007, the district court entered judgment on an arbitration award in favor of Qorvis Communications, LLC, a public relations firm, and against Christopher Wilson, a former public affairs executive with Qorvis, in the amount of $366,037.22. This amount represented damages resulting from Wilson’s breach of an employment agreement with Qorvis. Wilson appeals the judgment, contending that the arbitration clause in the employment agreement did not provide for the entry of a judgment on the award as required by § 9 of the Federal Arbitration Act (“FAA”), 9 U.S.C. § 9, and therefore that the district court lacked authority under the FAA to confirm the award through entry of judgment. He also contends that the district court erred in failing to vacate the arbitration award on the grounds that (1) the arbitrator manifestly disregarded the law of damages, rendering an award that failed to draw its essence from the employment agreement; (2) the arbitrator exceeded his authority, in violation of §§ 10(a)(4) and 11(b) of the FAA, 9 U.S.C. §§ 10(a)(4), 11(b), by including revenues of a non-party to the arbitration proceeding; and (3) the arbitrator denied Wilson “the opportunity to substantially and meaningfully present evidence” when it excluded the testimony of a witness, in violation of § 10(a)(3) of the FAA, 9 U.S.C. § 10(a)(3).

The FAA authorizes courts to enter judgments on arbitration awards “[i]f the parties in their agreement have agreed that a judgment of the court shall be entered upon the award.” 9 U.S.C. § 9. While the employment agreement at issue in this case does not explicitly contain the statutory language, it nonetheless clearly specifies that arbitration, in accordance with specified rules that authorize judicial enforcement, be the exclusive means of resolving disputes relating to the employment agreement or Wilson’s employment. In view of this manifest intent, coupled with Wilson’s conduct in pursuing court-ordered arbitration, we conclude that Wilson impliedly agreed to entry of a judgment on the award. Because we also reject Wilson’s other challenges to the arbitration award itself, we affirm.

I

Christopher Wilson is a “consultant with expertise in research, polling, and political consulting,” which earned him a “national *306 reputation” in political circles. In July 2001, he went to work as a public affairs executive with Qorvis Communications, LLC, to “organize, develop and build the business of [Wilson Research Strategies] (a division of Qorvis)” and to serve as the division’s chief executive officer. Under the initial arrangement between the parties, Wilson provided consulting services not only through Qorvis, but also directly to other persons and entities that he invoiced separately. In December 2003, however, Qorvis and Wilson entered into a new employment agreement, which provided that Wilson would continue to serve as president and chief executive officer of Wilson Research Strategies, but would “devote his full time, attention, skill, and energy” to the business of developing and building that division. The new agreement also obligated Wilson not to solicit Qorvis’ clients, prospective clients, and employees for his own account during his employment and for 18 months after he left the employ of Qorvis and to preserve the confidentiality of Qorvis’ trade secrets and other proprietary information. The new agreement included an arbitration clause that provided:

[A]ll disputes [with specified exceptions not at issue here] between the parties relating to this Agreement or otherwise arising out of or relating to Executive’s [Wilson’s] employment with [Qorvis] ... shall be resolved exclusively by arbitration in Fairfax County, Virginia or Washington, D.C The arbitration shall be conducted in accordance with the Employment Dispute Resolution Rules of JAMS. 1

Notwithstanding Wilson’s obligation to devote his full time and attention to Qor-vis’ business, Wilson nonetheless continued to provide political consulting outside of his employment with Qorvis and to invoice that work outside of Qorvis’ system. He also began making and implementing plans to leave Qorvis and form his own business. Qorvis became aware of Wilson’s activities by the spring of 2004. When attempts to renegotiate the employment agreement failed, Qorvis terminated Wilson’s employment on October 22, 2004, and commenced this action.

In its complaint, Qorvis alleged that Wilson, along with others, conspired to form their own business in the fall of 2003 and thereafter “proceeded to divert lucrative business opportunities to themselves and divide hundreds of thousands of dollars in proceeds among themselves.” It also alleged that Wilson and others “downloaded over 14 gigabytes (28,404 individual files) of Qorvis’ highly confidential and proprietary information” for purposes of pursuing the new endeavor. The 16-count complaint contended that Wilson breached the 2003 employment agreement, breached his duty of loyalty and duty to maintain confidentiality of employer information, interfered with contractual and business relationships between Qorvis and others, misappropriated trade secrets, converted Qorvis’ property and trade secrets for his own commercial use, and committed computer fraud. The complaint sought a broad range of injunctive relief and damages.

In response to Qorvis’ motion for preliminary injunction, Wilson contended that “[a]ll of Qorvis’ claims (other than for breach of contract) are committed to arbitration ... under Section 17(a) of the 2003 Employment Agreement and therefore, to the extent the agreement is valid those claims will be subject to dismissal by this *307 Court.” Also, in his answer and counterclaim, Wilson asserted as an affirmative defense that “Plaintiff may not recover the damages it seeks because some or all of the claims for relief must be pursued in arbitration.” Finally, at the hearing before the district court on Qorvis’ motion for a preliminary injunction, counsel for Wilson argued, “Fourteen of the sixteen counts that we are here on today are committed to arbitration under the employment agreement.... And [paragraph 17] clearly says that the only thing that the company can do in court is seek relief for violations of Section 6 and Section 8.” The district court agreed and entered an order directing the parties to arbitrate and thereafter to advise the court when a final arbitration award had been entered. The court also granted in part and denied in part Qorvis’ motion for a preliminary injunction and stayed further court proceedings pending the arbitration.

Without objection, the parties pursued arbitration, which progressed smoothly. Only two relevant procedural disagreements arose.

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549 F.3d 303, 2008 U.S. App. LEXIS 24376, 91 Empl. Prac. Dec. (CCH) 43,403, 2008 WL 5077823, Counsel Stack Legal Research, https://law.counselstack.com/opinion/qorvis-communications-llc-v-wilson-ca4-2008.