Scott Process Sys., Inc. v. Mitchell

2012 Ohio 5971
CourtOhio Court of Appeals
DecidedDecember 17, 2012
Docket2012CA00021
StatusPublished
Cited by10 cases

This text of 2012 Ohio 5971 (Scott Process Sys., Inc. v. Mitchell) 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
Scott Process Sys., Inc. v. Mitchell, 2012 Ohio 5971 (Ohio Ct. App. 2012).

Opinion

[Cite as Scott Process Sys., Inc. v. Mitchell, 2012-Ohio-5971.]

COURT OF APPEALS STARK COUNTY, OHIO FIFTH APPELLATE DISTRICT

SCOTT PROCESS SYSTEMS, INC. : JUDGES: : : Hon. Patricia A. Delaney, P.J. Plaintiff-Appellee : Hon. John W. Wise, J. : Hon. Julie A. Edwards, J. -vs- : : Case No. 2012CA00021 SCOTT A. MITCHELL, ET AL. : : : OPINION Defendants-Appellees : : -vs- : : BIZ SALES CO. AND RONALD : GENOVESE : : Non-Parties-Appellants :

CHARACTER OF PROCEEDING: Appeal from the Stark County Court of Common Pleas, Case No. 2010CV04565

JUDGMENT: REVERSED AND REMANDED

DATE OF JUDGMENT ENTRY: December 17, 2012

APPEARANCES:

For Biz Sales Co & Ronald Genovese: For Scott Process Systems, Inc.:

DEBORAH J. MICHELSON GREGORY A. BECK STEVEN J. MILLER ANTHONY E. BROWN 1301 East 9th St., Suite 2700 400 S. Main St. Cleveland, OH 44114-1835 North Canton, OH 44720

Delaney, P.J. {¶1} Non-Party Appellants Biz Sales Co. and Ronald Genovese appeal the

January 18, 2012 judgment entry of the Stark County Court of Common Pleas denying

their Motion to Quash and Protective Order and granting the Motion to Compel of

Plaintiff-Appellee Scott Process Systems, Inc.

FACTS AND PROCEDURAL HISTORY

{¶2} Defendant Scott Mitchell is the founder of Scott Process Systems, Inc., a

company that specializes in the nuclear, power, and process piping industry. Scott

Mitchell sold Scott Process Systems, Inc. to its current owner in 2009. Mitchell

entered into a non-compete agreement with Plaintiff-Appellee Scott Process Systems,

Inc. (“SPSI”).

{¶3} Scott Mitchell started a new business called Mitchell Piping, LLC. On

December 21, 2010, SPSI filed a complaint in the Stark County Court of Common

Pleas against Scott Mitchell and Mitchell Piping, LLC based on the alleged violation of

the non-compete agreement with SPSI by the formation of Mitchell Piping, LLC. SPSI

claimed interference with business relationships, civil conspiracy, misappropriation of

trade secrets, breach of fiduciary duty, and conversion.

{¶4} During the discovery process, SPSI sought the deposition of a non-party

to the action -- Ronald Genovese, president of Biz Sales Co. (hereinafter “Genovese”).

Genovese is a former employee of SPSI. Biz Sales Co. is a supplier of piping

materials and fabrication services. Genovese appeared for the deposition and was

represented by counsel. {¶5} SPSI, Mitchell, and Mitchell Piping, LLC entered into a settlement

agreement and dismissed the case on May 12, 2011. The settlement agreement

contained a non-compete agreement.

{¶6} On September 8, 2011, SPSI filed a Motion for an Order to Show Cause

as to why Mitchell and Mitchell Piping, LLC should not be held in contempt for violating

the settlement agreement. SPSI alleged Mitchell and Mitchell Piping, LLC contacted a

former customer of SPSI. The trial court permitted the parties to conduct discovery

pursuant to the motion.

{¶7} SPSI served Genovese with a subpoena for a deposition to be held on

October 12, 2011. The subpoena included a duces tecum request for Genovese to

bring all computers, computer hard drives, and cell phones utilized by Genovese from

April 1, 2011 to the present. Simultaneous to serving Genovese with the subpoena,

on October 5, 2011, SPSI filed with the trial court a Motion for Production of Computer

Hard Drives and Cell Phones of Ronald Genovese. The motion to compel was only

served upon counsel for Mitchell and Mitchell Piping, LLC. In the motion, SPSI

requested an order from the trial court that Genovese be required to produce for

inspection and copying all computer hard drives and cell phones utilized by Genovese

within the past 180 days. SPSI stated it hired a third party contractor to conduct the

electronic scan and copying. The trial court granted the motion on October 12, 2011.

{¶8} SPSI withdrew its October 5, 2011 Motion to Compel on October 19,

2011. SPSI stated in the notice of withdrawal that it and counsel for Genovese were

in the process of working through Genovese’s voluntary response to its subpoena. {¶9} On November 7, 2011, SPSI filed an Amended Notice to Take

Deposition of Ronald Genovese. The subpoena included a duces tecum request that

Genovese bring the documents listed in “Exhibit A.” Exhibit A states:

All computers, computer hard drives and cell phones utilized by you from

April 1, 2011 to the present. These electronic devices will be scanned

and the following electronically stored information will be copied and

produced to counsel for the issuing party:

(1) All communications with Scott Mitchell;

(2) All communications with Pam Mitchell;

(3) All communications to any person engaged in the nuclear power or

process industries;

(4) All communications regarding Scott Process Systems, Inc.;

(5) Any and all communications referencing January, 2012 (sic) that in

any way relate to Scott Mitchell, Mitchell Piping, SPSI, or the nuclear

power and process industries;

(6) Any and all communications referencing February, 2012 (sic) that in

any way relate to Scott Mitchell, Mitchell Piping, SPSI, or the nuclear

power and process industries.

{¶10} Due to other discovery issues, SPSI did not pursue the November 2011

deposition with Genovese. SPSI filed a second Amended Notice of Deposition of

Genovese with Exhibit A on January 5, 2012. The deposition was to be held on

January 16, 2012. {¶11} On January 17, 2012, Genovese filed a Motion to Quash and Protective

Order. Genovese objected to the date of the deposition, relevancy of the scope of

discovery, and the breadth of the discovery as to the electronic records. SPSI filed a

memorandum in opposition and a Motion to Compel Genovese’s attendance at the

deposition. In its response, SPSI stated that it attempted to work with Genovese by

providing a proposed protective order and a preliminary list of search terms. It stated

the language of Exhibit A was sufficiently limited. Genovese filed a reply on January

18, 2012.

{¶12} On January 18, 2012, the trial court denied the Motion to Quash and

Protective Order. It also granted the Motion to Compel, ordering Genovese to

produce all computers and mobile devices encompassed in Exhibit A. The judgment

entry does not refer to the proposed protective order or list of proposed search terms.

{¶13} It is from this decision Genovese now appeals.

ASSIGNMENTS OF ERROR

{¶14} Genovese raises five Assignments of Error:

{¶15} “I. THE TRIAL COURT COMMITTED REVERSIBLE ERROR BY

ISSUING A DISCOVERY ORDER THAT COMPELS NON-PARTIES TO PRODUCE

ALL THEIR PERSONAL AND PROFESSIONAL ELECTRONIC DEVICES FOR

FORENSIC IMAGING OF THEIR HARD DRIVES, AS PLAINTIFF-APPELLEE FAILED

TO MAKE THE REQUIRED DEMONSTRATION THAT PAPER PRODUCTION OF

APPELLANTS’ ELECTRONICALLY STORED DOCUMENTS WOULD BE

INADEQUATE. [JANUARY 18, 2012 ORDER.] {¶16} “II. THE TRIAL COURT COMMITTED REVERSIBLE ERROR BY

ISSUING A DISCOVERY ORDER THAT COMPELS NON-PARTIES TO PRODUCE

ALL OF THEIR PERSONAL AND PROFESSIONAL ELECTRONIC DEVICES FOR

FORENSIC IMAGING, AS APPELLANTS REPEATEDLY OFFERED TO

COOPERATE VOLUNTARILY WITH REQUESTS FOR DISCOVERABLE

DOCUMENTS AND INFORMATION FROM PLAINTIFF-APPELLEE THAT WERE

REASONABLE AND RELEVANT TO ITS PENDING CLAIMS; AND, THEREFORE,

PLAINTIFF-APPELLEE DID NOT (AND COULD NOT) MAKE THE REQUIRED

DEMONSTRATION THAT APPELLANTS HAD ENGAGED IN WILLFUL DISCOVERY

MISCONDUCT.

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