Safelite Glass Corp. v. Clara Kagy, Unpublished Decision (6-1-2000)

CourtOhio Court of Appeals
DecidedJune 1, 2000
DocketNo. 99AP-875
StatusUnpublished

This text of Safelite Glass Corp. v. Clara Kagy, Unpublished Decision (6-1-2000) (Safelite Glass Corp. v. Clara Kagy, Unpublished Decision (6-1-2000)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Safelite Glass Corp. v. Clara Kagy, Unpublished Decision (6-1-2000), (Ohio Ct. App. 2000).

Opinion

OPINION
Safelite Glass Corporation ("Safelite"), plaintiff-appellant, appeals a judgment of the Franklin County Court of Common Pleas granting a motion for summary judgment and a motion to dismiss filed by defendants-appellees, Clara Kagy, Terri Kagy, and Auto Glass R US, Inc. ("Auto Glass").

In mid-1995, Clara Kagy and Terri Kagy worked for an auto glass company and signed employment agreements pursuant to their employment. The agreements designated US Auto Glass Centers, Inc. ("USAG") as the appellees' "employer." At the time the appellees signed the agreements, USAG was a wholly owned subsidiary of Globe Glass Mirror Co. ("Globe"). The agreements included a restrictive covenant prohibiting the employees from "directly or indirectly, as an owner, shareholder partner, or employee, engag[ing] in the Area in the * * * auto glass or auto trim business" for one year after termination of their employment. The employment agreements also contained a choice of law provision indicating that they were to be construed under Illinois law.

In March 1996, Globe merged with Windshields America, Inc. and changed its name to Vistar, Inc. On December 18, 1997, Vistar and Safelite merged, with Safelite being the surviving corporation. The appellees resigned from Safelite in June 1998 and formed Auto Glass, a corporation that also engaged in the auto glass industry.

On July 9, 1998, USAG filed a complaint against appellees. The complaint stated causes of action for breach of the employment agreements and tortious interference. Each cause of action alleged that appellees' actions caused Safelite to suffer damages but did not allege any damages on behalf of USAG. Also on July 9, 1998, USAG filed a motion for a temporary restraining order, which specifically alleged irreparable harm to USAG while not alleging any harm to Safelite. The trial court granted the motion and issued a temporary restraining order on July 10, 1998. On July 16, 1998, appellees moved to dissolve the restraining order, which the trial court granted. On July 31, 1998, Safelite moved to intervene as a new-party plaintiff. Also on that date, USAG filed an amended complaint and alleged that harm would occur to Safelite "and/or" its subsidiary USAG.

On August 19, 1998, USAG filed a motion to substitute Safelite as the party plaintiff and for leave to file a second amended complaint naming Safelite as the party plaintiff. On October 13, 1998, USAG merged with and into Safelite. On December 1, 1998, the trial court allowed Safelite ("appellant") to be substituted as the real party interest in place of USAG, and on December 9, 1998, appellant filed a second amended complaint. The second amended complaint asserted that appellant held the employment agreements by assignment and requested injunctive and monetary relief against appellees for breach of the restrictive covenants and breach of the common law duty of loyalty and against Clara Kagy and Auto Glass for tortious interference.

On December 28, 1998, appellees filed a motion to dismiss the second amended complaint. On April 15, 1999, appellees filed a motion for summary judgment. On June 29, 1999, the court filed a judgment granting appellees' motion for summary judgment and motion to dismiss. The trial court found that: (1) appellees were never employed by USAG; (2) the restrictive covenants were not assignable to appellant; (3) appellees had no notice of the assignments; and (4) because the claims for breach of duty of loyalty and tortious interference arose out of the restrictive covenants, which were unenforceable by appellant, appellant could not recover based upon these claims. Appellant appeals the trial court's judgment, and appellees have filed a cross-appeal. Appellant asserts the following assignments of error:

I. THE TRIAL COURT ERRED WHEN IT GRANTED DEFENDANTS' MOTION TO DISMISS AND DEFENDANTS' MOTION FOR SUMMARY JUDGMENT WITH RESPECT TO THE BREACH OF CONTRACT CLAIMS.

II. THE TRIAL COURT ERRED WHEN IT GRANTED DEFENDANTS' MOTION FOR SUMMARY JUDGMENT WITH RESPECT TO THE TORTIOUS INTERFERENCE WITH CONTRACT AND THE BREACH OF DUTY OF LOYALTY CLAIMS, WHICH WERE NOT PROPERLY BEFORE THE COURT.

Appellant asserts in its first assignment of error that the trial court erred in granting appellees' motion for summary judgment and motion to dismiss. We will first address appellees' motion for summary judgment. Pursuant to Civ.R. 56, summary judgment is appropriate when (1) there is no genuine issue of material fact; (2) the moving party is entitled to judgment as a matter of law; and (3) reasonable minds can come to but one conclusion and that conclusion is adverse to the nonmoving party, said party being entitled to have the evidence construed most strongly in his favor. Zivich v. Mentor Soccer Club, Inc. (1998),82 Ohio St.3d 367, 369-370. "When reviewing a trial court's ruling on summary judgment, the court of appeals conducts an independent review of the record and stands in the shoes of the trial court." Mergenthal v. Star Banc Corp. (1997), 122 Ohio App.3d 100,103.

In Dresher v. Burt (1996), 75 Ohio St.3d 280, the Supreme Court of Ohio explained the respective burdens of parties when a motion for summary judgment is filed. The Supreme Court stated that the moving party, on the ground the nonmoving party cannot prove its case, has the initial burden of informing the trial court of the basis for the motion and identifying those portions of the record that demonstrate the absence of a genuine issue of material fact on the essential elements of the nonmoving party's claim. The moving party cannot discharge its initial burden under the rule with a conclusory assertion that the nonmoving party has no evidence to prove its case. Kulch v.Structural Fibers, Inc. (1997), 78 Ohio St.3d 134, 147; Dresher,supra, at 293. Rather, the moving party must specifically refer to the "pleadings, depositions, answers to interrogatories, written admissions, affidavits, transcripts of evidence in the pending case, and written stipulations of fact, if any," which affirmatively demonstrate that the nonmoving party has no evidence to support their claims. Civ.R. 56(C); see, also, Dresher, supra, at 293. Once the moving party satisfies its initial burden by affirmatively demonstrating that the nonmoving party lacked the evidence to support its claims, the nonmoving party is required to set forth specific facts showing that there is indeed a genuine issue. Id. at 293. In accordance with Civ.R. 56(E), "a nonmovant may not rest on the mere allegations or denials of his pleadings, but must set forth specific facts showing that there is a genuine issue for trial." Chaney v. Clark Cty. Agricultural Soc., Inc. (1993), 90 Ohio App.3d 421, 424.

Appellant asserts that genuine issues of material fact remain as to the identity of appellees' employer and whether appellees acquiesced to the assignment of their employment contracts. We will first address whether appellees acquiesced to the assignment of their employment agreements because our determination of this issue renders the identification of appellees' employer moot. Appellant asserts that there was a genuine issue of material fact as to whether appellees acquiesced to the assignment of their employment contracts and that the trial court improperly construed evidence most strongly in favor of appellees.

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Safelite Glass Corp. v. Clara Kagy, Unpublished Decision (6-1-2000), Counsel Stack Legal Research, https://law.counselstack.com/opinion/safelite-glass-corp-v-clara-kagy-unpublished-decision-6-1-2000-ohioctapp-2000.