ILNews

Summary judgment improper in non-compete clause appeal

Dave Stafford
September 30, 2013
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A trial court erred in granting summary judgment in favor of a former employer that sought to exercise a non-compete clause in the contract of an airline mechanic who went to work for another company.

The Indiana Court of Appeals reversed summary judgment in favor of the company and reinstated the worker’s claim of tortious interference with a contract in Joseph M. Guinn v. Applied Composites Engineering, Inc., 49A02-1303-CC-239.

Applied Composites Engineering demanded that Guinn be terminated after he was hired to work by AAR Aircraft Services. His contract with ACE had contained a “non-competition covenant” that said he could not work for any company “in the same of substantially similar business” as ACE for six months. AAR ultimately fired Guinn after ACE forwarded the non-compete language to AAR and threatened litigation.

“We conclude that the designated evidence presented by the parties demonstrates that a genuine issue of material fact exists with respect to whether or not ACE’s conduct in connection with Guinn’s employment relationship with AAR was justified or fair and reasonable under the circumstances,” Judge Elaine Brown wrote for the panel. “Accordingly, we cannot conclude that ACE is entitled to summary judgment as a matter of law on Guinn’s claim for tortious interference.”

The panel that also included judges Paul Mathias and Edward Najam noted that “ACE and Guinn were not on equal footing in terms of sophistication or the ability to protect their interests,” and that Guinn wasn’t asked to sign the contract until about 10 months after he started working for the company. Guinn testified he was told the agreement was a formality and “didn’t necessarily apply” to mechanics but had to be on file.

Judges used the 33-page opinion to cite more than six decades of caselaw taking an unfavorable view of non-compete clauses. Brown reached back to Donahue v. Permacel Tape Corp., 234 Ind. 398, 411, 127 N.E.2d 235, 241 (1955), “noting that an employer ‘has no right to unnecessarily interfere with the employee’s following any trade or calling for which he is fitted and from which he may earn his livelihood and he cannot preclude him from exercising the skill and general knowledge he has acquired or increased through experience or even instructions while in the employment.’”

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  1. All the lawyers involved in this don't add up to a hill of beans; mostly yes-men punching their tickets for future advancement. REMF types. Window dressing. Who in this mess was a real hero? the whistleblower that let the public know about the torture, whom the US sent to Jail. John Kyriakou. http://www.nytimes.com/2013/01/26/us/ex-officer-for-cia-is-sentenced-in-leak-case.html?_r=0 Now, considering that Torture is Illegal, considering that during Vietnam a soldier was court-martialed and imprisoned for waterboarding, why has the whistleblower gone to jail but none of the torturers have been held to account? It's amazing that Uncle Sam's sunk lower than Vietnam. But that's where we're at. An even more unjust and pointless war conducted in an even more bogus manner. this from npr: "On Jan. 21, 1968, The Washington Post ran a front-page photo of a U.S. soldier supervising the waterboarding of a captured North Vietnamese soldier. The caption said the technique induced "a flooding sense of suffocation and drowning, meant to make him talk." The picture led to an Army investigation and, two months later, the court martial of the soldier." Today, the US itself has become lawless.

  2. "Brain Damage" alright.... The lunatic is on the grass/ The lunatic is on the grass/ Remembering games and daisy chains and laughs/ Got to keep the loonies on the path.... The lunatic is in the hall/ The lunatics are in my hall/ The paper holds their folded faces to the floor/ And every day the paper boy brings more/ And if the dam breaks open many years too soon/ And if there is no room upon the hill/ And if your head explodes with dark forbodings too/ I'll see you on the dark side of the moon!!!

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  5. My mother got temporary guardianship of my children in 2012. my husband and I got divorced 2015 the judge ordered me to have full custody of all my children. Does this mean the temporary guardianship is over? I'm confused because my divorce papers say I have custody and he gets visits and i get to claim the kids every year on my taxes. So just wondered since I have in black and white that I have custody if I can go get my kids from my moms and not go to jail?

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