Restorative Care of America, Inc. v. Josloff

CourtDistrict Court, M.D. Florida
DecidedMarch 31, 2025
Docket8:22-cv-01404
StatusUnknown

This text of Restorative Care of America, Inc. v. Josloff (Restorative Care of America, Inc. v. Josloff) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Restorative Care of America, Inc. v. Josloff, (M.D. Fla. 2025).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA TAMPA DIVISION

RESTORATIVE CARE OF AMERICA, INC.,

Plaintiff,

v. Case No. 8:22-cv-1404-KKM-AEP

DEAN JOSLOFF,

Defendant. ____________________________________ ORDER Restorative Care of America, Inc., (RCAI), a Florida-based company that manufactures and sells orthopedic devices, sues its former president, Dean Josloff, for violations of the Defend Trade Secrets Act (DTSA) and the Florida Uniform Trade Secrets Act (FUTSA) along with six counts for various state law torts. Am. Compl. (Doc. 18). Josloff brings counterclaims against RCAI alleging defamation, religious discrimination under the Florida Civil Rights Act (FCRA) and the New Jersey Law Against Discrimination (NJLAD), fraud, and negligent misrepresentation. Am. Counterclaim (Doc. 67). RCAI moves for summary judgment on its claims and on Josloff’s counterclaims. MSJ (Doc. 144). Josloff responded, Resp. (Doc. 169), and RCAI replied, Reply (Doc. 172). For the reasons below, I grant in part and deny in part the motion. I. BACKGROUND

RCAI manufactures and sells orthopedic and rehabilitative products. MSJ at 1; Resp. at 2. After working at RCAI for many years, RCAI promoted Josloff to National Sales Manager in 2017. MSJ at 1. After the company’s president retired in 2019,

RCAI’s Chairman and sole shareholder, Mark Turnbull, promoted Josloff to the position of Executive Vice President. Turnbull Decl. (Doc. 144-1) ¶¶ 4, 11–12. In this position, Josloff was the highest-ranking employee at RCAI. MSJ at 2. On October 4, 2021,

Turnbull appointed Josloff as President. Turnbull Decl. ¶ 10. The events giving rise to this litigation occurred over the course of Josloff’s tenure as President and Executive Vice President. Four days after promoting Josloff to President,

Turnbull asserts that he discovered that Josloff directed RCAI’s controller, Heidi Rodriguez, to pay him “unauthorized commissions, bonuses, and salary increases,” which Turnbull asserts was in “direct contravention” of Board directives. MSJ at 5, 20;

Turnbull Decl. ¶¶ 13–32. This was “unauthorized,” according to Turnbull, because Turnbull was the “sole individual with authority” to alter compensation, and he had made that “clear” to Josloff. . ¶¶ 10, 12–13. Josloff disputes the characterization as

“unauthorized” because RCAI’s controller approved them, and Josloff states that Turnbull was aware of his compensation. Resp. at 4–5. Believing Josloff’s actions to be unauthorized, Turnbull admonished him and ordered Josloff to cease giving himself compensation increases. Turnbull Decl.¶ 15. RCAI states that during this meeting, Josloff asked to raise

his salary and Turnbull refused. . ¶ 21. Turnbull told Josloff that he would develop a new compensation package to be finalized after RCAI’s performance was assessed at the end of the first quarter of 2022, ., but Turnbull discovered that soon thereafter Josloff again

directed the controller to raise his salary without Turnbull’s approval, . ¶ 22. According to RCAI, throughout Josloff’s tenure as President, Josloff continued to direct RCAI’s controller to award him compensation increases. . ¶¶ 22–23.

From 2020 to 2022, Josloff also allegedly engaged in other financial improprieties, including taking unauthorized car and phone allowances, using company funds for personal purchases, and hiring his wife as a salaried employee without director permission. .

¶¶ 24–32. Turnbull learned from the controller that Josloff had directed the controller to approve his wife with company health insurance. . ¶ 38. When the RCAI Treasurer, RCAI Secretary, and Turnbull confronted Josloff in April 2022, Josloff protested that his

wife was a “temporary, part-time” employee and that she did not receive benefits. . ¶ 38. To hire his wife at RCAI, Josloff directed the controller to add her to payroll under her maiden name. . ¶¶ 27, 38. Josloff does not dispute this fact but asserts that he had “full

authority” and “would have no reason to conceal his wife’s name when she had been using it all along.” Resp. at 6–7. Josloff maintains that the “personal purchases” he made were for company purposes only, that the car he used was “shared,” and that it was within Josloff’s authority to alter cell phone allowances. . at 5. The personal charges to company credit

cards, according to RCAI, included personal medical expenses, “personal and recreational travel, gifts, flowers, and baked goods for family members.” Turnbull Decl. ¶ 30. After Turnbull rebuked Josloff for hiring his wife without authorization, on or about

April 8, 2022, Josloff allegedly transferred confidential information from company emails and accounts to his personal email account, including vendor information, sales data, and more. Turnbull Decl. ¶¶ 40–44. Josloff responds that he sent himself the information while

he was still employed and therefore “his actions were done through proper means for the purpose of doing his job.” Resp. at 13. After meeting with RCAI employees to learn more about Josloff’s actions, Turnbull terminated Josloff’s employment on April 14, 2022,

Turnbull Decl. ¶¶ 39, 44. After his termination, RCAI “also learned that [Josloff] had unilaterally, and without any legitimate business reason, ordered the destruction” of documents “to support RCAI’s ISO 9001 Certification.” MSJ at 5; Turnbull Decl.

¶ 33. Josloff denies those allegations, arguing that those files were on the controller’s computer, which he could not access. Resp. at 9. Because Josloff called the controller before his termination to report Turnbull for discrimination based on Turnbull calling him a

“f...ing Jew” earlier in April 2022, at 7, Josloff maintains that he was terminated “for reporting religious discrimination,” at 1. II. LEGAL STANDARD

Summary judgment is appropriate if no genuine dispute of material fact exists and the moving party is entitled to judgment as a matter of law. FED. R. CIV. P. 56(a). A fact is material if it “might affect the outcome of the suit under the governing law.”

, 477 U.S. 242, 248 (1986). The movant always bears the initial burden of informing the district court of the basis for its motion and identifying those parts of the record that demonstrate an absence

of a genuine issue of material fact. , 929 F.2d 604, 608 (11th Cir. 1991). When that burden is met, the burden shifts to the nonmovant to present evidentiary materials (e.g., affidavits, depositions, exhibits, etc.) demonstrating that there

is a genuine issue of material fact which precludes summary judgment. A moving party is entitled to summary judgment if the nonmoving party “fail[s] to make a sufficient showing on an essential element of her case with respect to which she has the burden of

proof.” , 477 U.S. 317, 323 (1986). The Court reviews the record evidence as identified by the parties and draws all legitimate inferences in the nonmoving party’s favor. , 946 F.3d

1256, 1262 (11th Cir. 2020); , 527 F.3d 1253, 1268 (11th Cir. 2008). “[W]hen the question before the district court is purely a question of law,” summary judgment may be appropriately granted. , 91 F.4th 1061, 1070 (11th Cir. 2024). “The mere existence of a scintilla of evidence in support of the [nonmovant’s]

position will be insufficient; there must be evidence on which the jury could reasonably find for the [nonmovant].” , 169 F.3d 1310, 1321 (11th Cir.

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