Restivo v. Fifth Third Bank

681 N.E.2d 484, 113 Ohio App. 3d 516
CourtOhio Court of Appeals
DecidedAugust 16, 1996
DocketNo. L-95-296.
StatusPublished
Cited by26 cases

This text of 681 N.E.2d 484 (Restivo v. Fifth Third Bank) 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
Restivo v. Fifth Third Bank, 681 N.E.2d 484, 113 Ohio App. 3d 516 (Ohio Ct. App. 1996).

Opinions

*518 Per Curiam.

This is an appeal and cross-appeal from a judgment of the Lucas County Court of Common Pleas in this dispute concerning a restrictive employment covenant. Appellant/cross-appellee, Fifth Third Bank of Northwest Ohio, N.A., sets forth the following three assignments of error:

“I. The trial court erred in awarding plaintiff Anthony J. Restivo judgment as a matter of law on the counterclaim requesting injunctive relief filed by Fifth Third Bank of Northwest Ohio on the ground that the bank had failed to produce evidence of damage. Actual damage is not required in order for a party to be entitled to injunctive relief.
“II. The trial court erred in awarding plaintiff Anthony J. Restivo judgment as a matter of law on the counterclaim requesting injunctive relief filed by Fifth Third Bank of Northwest Ohio, because the trial court previously made findings which establish that irreparable harm will accrue to the bank by virtue of Restivo’s violation of the restrictive employment covenant.
“III. The trial court erred in denying Fifth Third Bank of Northwest Ohio’s motion for sanctions.”

Appellee/cross-appellant, Anthony J. Restivo, sets forth the following four cross-assignments of error:

“First Assignment of Error on Cross-Appeal. The trial court erred in finding as a matter of law that cross-appellant Restivo was not coerced into executing the stock option agreement.
“Second Assignment of Error on Cross-Appeal. The trial court erred in finding that the stock option agreement was supported by consideration.
“Third Assignment of Error on Cross-Appeal. The trial court erred in finding that cross-appellant’s affidavit was not supported by substantive facts.
“Fourth Assignment of Error on Cross-Appeal. The trial court erred in finding that the restrictive employment covenant contained in the stock option agreement is enforceable.”

The following facts are relevant to this appeal. Restivo began his employment with the bank in April 1985. On September 22, 1998, Restivo executed a stock option agreement with the bank; this agreement also contained a postemployment restrictive covenant. Restivo resigned his employment with the bank on July 22, 1994. He began employment with a competitor of the bank in August 1994.

On October 12, 1994, Restivo filed a complaint for declaratory judgment, seeking an order that the restrictive employment covenant was invalid and *519 unenforceable. The bank filed an answer and a counterclaim for injunctive relief. Cross-motions for summary judgment were filed. On September 5, 1995, the trial court granted the bank’s motion for summary judgment, finding that the covenant was enforceable except for the geographical restraint which the court modified. The trial court granted Restivo’s motion for summary judgment on the bank’s counterclaim for injunctive relief. The trial court found that the bank was not entitled to injunctive relief because the one-year period provided for in the restrictive covenant had already passed and the bank had failed to demonstrate any damages or injury caused by Restivo.

Because the first and second assignments of error both concern the trial court’s denial of injunctive relief, we will discuss them together. In its first assignment of error, the bank argues that the trial court erred in granting Restivo summary judgment on its counterclaim on the ground that the bank failed to produce evidence of damage. In its second assignment of error, the bank argues that the trial court erred in granting Restivo summary judgment on its counterclaim because the trial court’s prior findings establish that irreparable harm will accrue to the bank due to Restivo’s violation of the restrictive covenant.

In reviewing the grant of summary judgment, this court must apply the same standard as the trial court. Lorain Natl. Bank v. Saratoga Apts. (1989), 61 Ohio App.3d 127, 129, 572 N.E.2d 198, 199-200. Summary judgment will be granted when there remains no genuine issue of material fact and, when construing the evidence most strongly in favor of the nonmoving party, reasonable minds can only conclude that the moving party is entitled to judgment as a matter of law. Civ.R. 56(C). Restivo moved for and was granted summary judgment as to the bank’s counterclaim for injunctive relief.

In Ohio, an agreement restraining a former employee from competing with his former employer will be enforced under the rule of reasonableness to the extent that the restraint (1) is required to protect the legitimate interests of the employer, (2) does not impose an undue hardship on the employee, and (3) is not injurious to the public. Raimonde v. Van Vlerah (1975), 42 Ohio St.2d 21, 71 O.O.2d 12, 325 N.E.2d 544, paragraphs one and two of the syllabus; Rogers v. Runfola & Assoc., Inc. (1991), 57 Ohio St.3d 5, 8, 565 N.E.2d 540, 543-544: In addition to adducing clear and convincing evidence of each of these three elements, a plaintiff is required to establish actual irreparable harm or the existence of an actual threat of such injury when the equitable remedy of injunction is sought. Ohio Urology, Inc. v. Poll (1991), 72 Ohio App.3d 446, 594 N.E.2d 1027.

In Garono v. State (1988), 37 Ohio St.3d 171, 173, 524 N.E.2d 496, 498, the Ohio Supreme Court stated:

*520 “An injunction is an extraordinary remedy in equity where there is no adequate remedy available at law. It is not available as a right but may be granted by a court if it is necessary to prevent a future wrong that the law cannot. The grant or denial of an injunction is solely within the trial court’s discretion and, therefore, a reviewing court should not disturb the judgment of the trial court absent a showing of a clear abuse of discretion.” (Citations omitted.) See, also, Perkins v. Quaker City (1956), 165 Ohio St. 120, 59 O.O. 151, 133 N.E.2d 595, syllabus.

“The term ‘abuse of discretion’ connotes more than an error of law or judgment; it implies that the court’s attitude is unreasonable, arbitrary or unconscionable.” Blakemore v. Blakemore (1983), 5 Ohio St.3d 217, 219, 5 OBR 481, 482, 450 N.E.2d 1140, 1142. Unless the trial court’s decision to grant or deny injunctive relief is, in some way, unreasonable, arbitrary or unconscionable, it will not be disturbed on appeal. Garono v. State, supra, 37 Ohio St.3d at 173, 524 N.E.2d at 498-499.

The decision as to whether an injunction should be granted depends on the specific facts and circumstances of a given case. Cullen v.

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Bluebook (online)
681 N.E.2d 484, 113 Ohio App. 3d 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/restivo-v-fifth-third-bank-ohioctapp-1996.