Skycasters, L.L.C. v. Kister

2021 Ohio 4154
CourtOhio Court of Appeals
DecidedNovember 24, 2021
Docket29660
StatusPublished
Cited by4 cases

This text of 2021 Ohio 4154 (Skycasters, L.L.C. v. Kister) 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
Skycasters, L.L.C. v. Kister, 2021 Ohio 4154 (Ohio Ct. App. 2021).

Opinion

[Cite as Skycasters, L.L.C. v. Kister, 2021-Ohio-4154.]

STATE OF OHIO ) IN THE COURT OF APPEALS )ss: NINTH JUDICIAL DISTRICT COUNTY OF SUMMIT )

SKYCASTERS, LLC, et al. C.A. No. 29660

Appellants

v. APPEAL FROM JUDGMENT ENTERED IN THE MICHAEL KISTER, et al. COURT OF COMMON PLEAS COUNTY OF SUMMIT, OHIO Appellees CASE No. CV-2016-04-1899

DECISION AND JOURNAL ENTRY

Dated: November 24, 2021

TEODOSIO, Judge.

{¶1} Skycasters, LLC and Satventures Management, LLC (collectively “Skycasters”)

appeal from the judgment of the Summit County Court of Common Pleas. We affirm.

I.

{¶2} Skycasters, LLC, is an internet service provider that provides satellite-based

internet connections to its customers. Satventures Management, LLC, provides employees,

management services, and other services to Skycasters, LLC. Richard McKinney was employed

as a salesperson by Skycasters from December 2001 through June 2014 and signed a

Confidentiality Noncompetition and Nonsolicitation Agreement (“Noncompetition Agreement”)

in 2011. Michael Kister was hired by Skycasters in January 2008 as the vice-president of

marketing and operations and was promoted to president within six months.

{¶3} While working for Skycasters, Mr. McKinney began developing a new business

enterprise called Acceleration Systems and developed a software technology that would 2

compress data files to allow for the faster transmission of data through the internet. Mr.

McKinney approached Mr. Kister with the idea for Acceleration Systems in October 2010, after

which the two began working together on the project while they were both employed by

Skycasters. Mr. Kister resigned from Skycasters in March 2013 and Mr. McKinney resigned in

June 2014, with the two formally launching Acceleration Systems in 2014. Skycasters contends

that the actions of Mr. McKinney in secretly developing Acceleration Systems during his

employment with Skycasters violated the Noncompetition Agreement he had signed, alleging

that Mr. McKinney had used and shared confidential information, solicited customers, and

competed with Skycasters.

{¶4} In April 2016, Skycasters filed its original complaint against Mr. McKinney and

Mr. Kister, with an amended complaint having been filed in December 2016. The case was

stayed as to Mr. Kister due to the filing of bankruptcy. In September 2018, a second amended

complaint was filed naming only Mr. McKinney and Kelly Olsen (who was later voluntarily

dismissed by Skycasters) as defendants, alleging claims for breach of contract, breach of duty of

loyalty and good faith, fraud, tortious interference with contract and business relations, and civil

conspiracy.

{¶5} Prior to trial, Mr. McKinney filed a motion for summary judgment that was

denied by the trial court. Mr. McKinney also filed a motion in limine to exclude evidence

related to the claim of civil conspiracy, which was granted off the record, with the trial court

further dismissing the claim for civil conspiracy. Also prior to trial, Skycasters filed a motion for

a jury instruction on adverse inference, which was not included in the instructions given by the

trial court. 3

{¶6} At trial, after Skycasters presented its case-in-chief, the trial court granted a

motion for directed verdict on the claims for fraud and tortious interference. The remaining

claims for breach of contract and breach of duty of loyalty and good faith were sent to the jury

for deliberation. The jury answered interrogatories indicating that it found that Mr. McKinney

had breached both his contract and his duty of loyalty and good faith. In answering the

interrogatories, the jury further found that Skycasters had not suffered any damages as a direct

and proximate result of either breach. Although the jurors had been instructed that if no damages

were found, they were to sign the verdict forms in favor of the defendant, the jurors instead

signed the verdict forms in favor of the plaintiffs. The trial court judge indicated that he would

enter judgment in favor of the defendant in accordance with the interrogatories. Initially, the

trial court filed an entry granting judgment in favor of the plaintiffs in the amount of $0.00. Four

days later, the trial court filed a nunc pro tunc judgment entry granting judgment in favor of the

defendant in accordance with the interrogatories.

{¶7} An attempted appeal to this Court was dismissed because the trial court had not

journalized an entry resolving the claims for civil conspiracy, fraud, and tortious interference.

The trial court subsequently entered judgment indicating that it had issued a direct verdict on the

claims of fraud and tortious interference and that the claim for civil conspiracy had been

dismissed prior to trial as “a matter of law.” Skycasters now appeals, raising five assignments of

error that have been reordered for the purposes of this analysis.

II.

ASSIGNMENT OF ERROR ONE

THE TRIAL COURT ERRED IN GRANTING A DIRECTED VERDICT ON APPELLANTS’ CLAIMS OF FRAUD (COUNT III) AND TORTIOUS INTERFERENCE WITH CONTRACT AND BUSINESS RELATIONS (COUNT V) ON THEIR SECOND AMENDED COMPLAINT. 4

{¶8} In its first assignment of error, Skycasters argues the trial court erred in granting a

directed verdict on their claims for fraud and tortious interference with contract and business

relations.

{¶9} A motion for directed verdict tests the legal sufficiency of the evidence supporting

a claim. Ruta v. Breckenridge-Remy Co., 69 Ohio St.2d 66, 68 (1982). “Under Civ.R. 50(A)(4),

a motion for directed verdict can only be granted when, having construed the evidence most

strongly in favor of the nonmoving party, the court concludes that reasonable minds could only

reach one conclusion upon the evidence submitted and that conclusion is adverse to the

nonmoving party.” Woodside Mgt. Co. v. Bruex, 9th Dist. Summit No. 29179, 2020-Ohio-4039,

¶ 50. “By the same token, if there is substantial competent evidence to support the party against

whom the motion is made, upon which evidence reasonable minds might reach different

conclusions, the motion must be denied.” Hawkins v. Ivy, 50 Ohio St.2d 114, 115 (1977).

Because a motion for directed verdict presents a question of law, this Court’s review is de novo.

Jackovic v. Webb, 9th Dist. Summit No. 26555, 2013-Ohio-2520, ¶ 6.

{¶10} At the conclusion of Skycasters’ presentation of its case at trial, the trial court

granted a direct verdict on the claims for fraud and tortious interference with contract and

business relations. In issuing the verdict, the trial court noted that the case involved an

employment dispute claim and found that the law relative to employment encompassed the

claims for tortious interference and fraud. The trial court further found the claims for fraud and

tortious interference were “evidentiary matters” contained within the claims for breach of the

employment agreement and breach of fiduciary duty of good faith and fair dealing and that “to

have four separate claims would be an overlap and confusing to any jury.” 5

{¶11} As we have noted, “a motion for directed verdict can only be granted when,

having construed the evidence most strongly in favor of the nonmoving party, the court

concludes that reasonable minds could only reach one conclusion upon the evidence submitted

and that conclusion is adverse to the nonmoving party.” Woodside Mgt. at ¶ 50. It is apparent

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