Willis Refrig., A/C Heating v. Maynard, Unpublished Decision (1-18-2000)

CourtOhio Court of Appeals
DecidedJanuary 18, 2000
DocketCase No. CA99-05-047.
StatusUnpublished

This text of Willis Refrig., A/C Heating v. Maynard, Unpublished Decision (1-18-2000) (Willis Refrig., A/C Heating v. Maynard, Unpublished Decision (1-18-2000)) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law.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
Willis Refrig., A/C Heating v. Maynard, Unpublished Decision (1-18-2000), (Ohio Ct. App. 2000).

Opinion

OPINION
Plaintiff-appellant, Willis Refrigeration, Air Conditioning Heating, Inc. ("Willis"), appeals the decision of the Clermont County Court of Common Pleas denying its motion for preliminary injunction against defendants-appellees, Floyd E. "Jack" Maynard, Jr. ("Maynard"), John Isaacs ("Isaacs"), and Maynard Heating Cooling Company ("Maynard Heating Cooling").

Willis is an Ohio corporation which provides heating, ventilation, and air conditioning ("HVAC") sales and services primarily to builders of new residential homes. While Willis did not have an exclusive contract with any builder, Willis was the exclusive supplier of HVAC services to many of those builders until the fall of 1998. From 1962 to 1992, Maynard was the owner of Willis. In 1992, Maynard transferred all of his interest in Willis primarily to his son, Floyd M. "Mike" Maynard ("Mike Maynard"). Following the transfer, Maynard remained an employee of Willis. In November 1997, Mike Maynard sold his entire interest in Willis to a Texas corporation, Group Maintenance America Corp. ("Group MAC"). Mike Maynard remained in a management position pursuant to a written contract while his father, Maynard, stayed on as an at-will employee. Maynard did not sign a covenant not to compete.

Early September 1998, Mike Maynard's employment with Group MAC ended under contested circumstances. On September 16, 1998, Maynard was terminated. In October 1998, Maynard started his own HVAC company, Maynard Heating Cooling. Maynard eventually hired five former Willis at-will employees, including Isaacs and Mark Ernst. Maynard and Isaacs are both officers and shareholders of Maynard Heating Cooling.

The record shows that Ernst started working for Willis in September 1991. On December 7, 1993, he signed a nondisclosure and nonsolicitation agreement. Ernst resigned on October 28, 1998 and went to work for Maynard. Isaacs first started working for Willis in 1993. In 1995, he left Willis to work for a competing company. On March 5, 1996, Isaacs was rehired by Willis. That same day, Isaacs signed a nondisclosure and nonsolicitation agreement. Isaacs resigned on October 22, 1998 and went to work for Maynard.

Isaacs' agreement stated that Isaacs acknowledged that "all information obtained, produced, or developed during the course of his employment is considered to be the private and confidential information of [Willis]." The agreement further restricted Isaacs, both during and after employment with Willis, from "directly or indirectly" (1) making known or divulging any of this confidential information, (2) calling on, soliciting, taking away, or attempting any of these actions against any Willis customers, either for himself or for another, for one year from the date of termination of employment, and (3) soliciting, inducing or attempting to solicit or induce any employees of Willis to either divulge confidential information or leave Willis' employment for himself or another organization. The agreement signed by Ernst is identical to Isaacs' agreement.

On December 10, 1998, Willis filed a complaint against appellees alleging misappropriation of trade secrets, breach of fiduciary duty, interference with business relationships, unfair competition, conspiracy, conversion, and deceptive trade practices. That same day, Willis also filed a motion for a temporary restraining order and preliminary injunction. The motion sought to enjoin appellees from (1) obtaining, using, or disclosing Willis' trade secrets or other confidential information, (2) soliciting or servicing additional business from construction companies or builders that were customers of Willis as of September 9, 1993, and (3) soliciting or contacting any current Willis employees. On December 14, 1998, the trial court issued a temporary restraining order, preventing appellees from soliciting or initiating contact with Willis employees pending the trial court's decision on the preliminary injunction motion. Such motion was heard on March 11 and 12, 1999. By decision filed April 13, 1999, the trial court denied Willis' motion for preliminary injunction. Willis timely filed this accelerated appeal and raises two assignments of error.

In its first assignment of error, Willis argues that the trialcourt erred in not finding the nondisclosure and nonsolicitationagreements presumptively valid for preliminary injunction purposes.

In its motion for preliminary injunction, Willis claimed,inter alia, that Isaacs had breached his agreement and that Maynard and his company had tortiously interfered with both Isaacs' and Ernst's agreements. In denying Willis' motion, the trial court first stated that it was "inappropriate for the Court to make a decision as to the contract's validity at this time because the purpose of a preliminary injunction is to preserve the status quo pending trial — here, to prevent [appellees] from soliciting or causing others to solicit Willis' customers pending determination of [Willis'] breach of contract and tortious interference claims."

The trial court then stated that in light of "a serious lack of accord" among Ohio appellate courts as to whether continued employment alone constitutes consideration for a restrictive covenant, it could not find that Willis was likely to prevail on the merits of its claims.

The function of a preliminary injunction is to maintain the status quo pending trial on the merits. Consun Food Industries,Inc. v. Fowkes (1991), 81 Ohio App.3d 63, 69. In determining whether to grant a preliminary injunction, a trial court must consider whether (1) there is a substantial likelihood that the movant will prevail on the merits, (2) the movant will suffer irreparable injury if the injunction is not granted, (3) third parties will be unjustifiably harmed if the injunction is granted, and (4) the public interest will be served by granting the injunction. Vanguard Transp. Sys., Inc. v. Edwards Transfer Storage Co., Gen. Commodities Div. (1996), 109 Ohio App.3d 786,790. Each element, if found by the court, must be established by clear and convincing evidence. Id.

It is well-established that the grant or denial of an injunction is solely within the trial court's discretion and will not be disturbed on appeal absent a clear abuse of discretion.Garono v. State (1988), 37 Ohio St.3d 171, 173. A reviewing court should presume that the trial court's findings are accurate since the trial court is best able to view the witnesses and observe their demeanor, gestures, and voice inflections and use these observations in weighing the credibility of the witnesses.In re Jane Doe 1 (1991), 57 Ohio St.3d 135, 138. Thus, we accept the trial court's findings of fact unless clearly erroneous.Basicomputer v. Scott (C.A.6, 1992), 973 F.2d 507, 511.

We note at the outset that the trial court erred in finding that Isaacs executed his agreement "in the midst of his employment with Willis[.]" While Ernst did not sign his agreement until two years after he started working for Willis, such was not the case for Isaacs. The record clearly shows that Isaacs signed his 1996 agreement on the day he was rehired by Willis. Thus, the trial court's foregoing finding of fact is clearly erroneous. That being said, we now turn to Willis' first assignment of error.

Willis first argues that pursuant to Arthur Young Co. v.

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Willis Refrig., A/C Heating v. Maynard, Unpublished Decision (1-18-2000), Counsel Stack Legal Research, https://law.counselstack.com/opinion/willis-refrig-ac-heating-v-maynard-unpublished-decision-1-18-2000-ohioctapp-2000.