Schimenti Construction Co., LLC v. Schimenti

217 Conn. App. 224
Connecticut Appellate Court·Decided January 17, 2023·No. AC44274·Published·Cited by 4 cases

Opinion

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SCHIMENTI CONSTRUCTION COMPANY, LLC v. JOSEPH SCHIMENTI

(AC 44274) Bright, C. J., and Cradle and Seeley, Js.

Syllabus

The plaintiff construction management firm sought to recover damages from the defendant, a former employee, for, inter alia, breach of contract and breach of the covenant of good faith and fair dealing. The plaintiff hired the defendant in 1998. In 2014, the defendant was promoted and, in connection therewith, received and signed a promotion letter, which confirmed his promotion, described the responsibilities, compensation and benefits of his new position, stated that he remained an at-will employee, and provided that he was required to execute a nondisclosure agreement as a condition of his continued employment. The nondisclosure agreement, which the defendant also signed, included a provision that prohibited him from competing with the plaintiff’s business for the duration of his employment and for two years following the termination of his employment. In 2018, the defendant resigned from his employment with the plaintiff and accepted a position with a competitor construction company. Thereafter, the plaintiff commenced this action, claiming that the defendant had breached the nondisclosure agreement. The defendant filed a motion for summary judgment as to two counts of the plaintiff’s complaint, claiming that the restrictive covenants set forth in the nondisclosure agreement were unenforceable because the agreement lacked consideration. The trial court granted the defendant’s motion, determining that the nondisclosure agreement was unenforceable for a lack of consideration, and it denied the plaintiff’s motion for a determination in favor of an immediate appeal. Thereafter, the plaintiff withdrew the remaining counts of its complaint, and it appealed to this court. Held that the trial court erred in granting the defendant’s motion for summary judgment as there was at least a genuine issue of material fact as to whether the defendant’s continued employment constituted sufficient consideration for the nondisclosure agreement: pursuant to Roessler v. Burwell (119 Conn. 289), which was binding precedent, the continued employment of an at-will employee could constitute sufficient consideration for the execution of a restrictive covenant, and the Superior Court decisions that have held to the contrary since that decision either failed to consider Roessler or distinguished it on the basis of circumstances that were inapplicable to the present case; moreover, the evidence before the trial court, when viewed in the light most favorable to the plaintiff, showed that, by signing the nondisclosure agreement, the plaintiff received the benefit of the defendant’s services and the benefit of the restrictive covenant and the defendant received the benefit of continued employment, as the defendant was an at-will employee who could be terminated at the plaintiff’s discretion, the promotion letter explicitly stated that the execution of the nondisclosure agreement was a condition of the defendant’s continued employment, and the defendant continued his employment with the plaintiff for four years after executing the nondisclosure agreement before he voluntarily resigned; furthermore, the trial court’s reliance on Thoma v. Oxford Performance Materials, Inc. (153 Conn. App. 50), in granting the defendant’s motion for summary judgment, was misplaced because the holding in Thoma that continued employment was insufficient consideration for a restrictive covenant was limited to the facts of that case and was not inconsistent with, nor did it undermine, the reasoning of Roessler, as the court in Thoma did not conclude or suggest that continued employment could not constitute adequate consideration for a restrictive covenant.

Argued May 10, 2022—officially released January 17, 2023

Procedural History

Action to recover damages for, inter alia, breach of contract, and for other relief, brought to the Superior

Court in the judicial district of Danbury and transferred to the judicial district of Hartford, Complex Litigation Docket, where the court, Moukawsher, J., granted the defendant’s motion for summary judgment with respect to certain counts of the complaint; thereafter, the court, Moukawsher, J., denied the plaintiff’s motion for a written determination in favor of an immediate appeal; subsequently , the plaintiff withdrew the remaining counts of the complaint; judgment for the defendant, from which the plaintiff appealed to this court. Reversed; further proceedings.

Robert M. Barrack, with whom, on the brief, was Peter E. Strniste, Jr., for the appellant (plaintiff).

Lori B. Alexander, with whom, on the brief, was Stephen P. Rosenberg, for the appellee (defendant).

Opinion

SEELEY, J. The plaintiff, Schimenti Construction Company, LLC, appeals from the summary judgment rendered by the trial court in favor of the defendant, Joseph Schimenti, on counts one and two of its complaint alleging breach of an employment contract and breach of the covenant of good faith and fair dealing. On appeal, the plaintiff claims that the court erred in determining that continued employment of an at-will employee1 does not constitute consideration for a restrictive covenant.2 We agree with plaintiff’s claim and, therefore, reverse the summary judgment rendered in favor of the defendant and remand the case for further proceedings.

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Schimenti Construction Co., LLC v. Schimenti, 217 Conn. App. 224 (Colo. Ct. App. 2023).

217 Conn. App. 224 (Schimenti Construction Co., LLC v. Schimenti) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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