Ross Equipment Corporation v. Riggs, Unpublished Decision (2-12-1999)
Ross Equipment Corporation v. Riggs, Unpublished Decision (2-12-1999)
Opinion of the Court
Ross filed a complaint against appellees, Martha Riggs, Elder High Lift, and Lammbros, Inc. dba Elder Rubber Co., alleging breach of a covenant not to compete and improper use of trade secrets. Ross is an Ohio corporation, based in Cleveland, engaged in the sale and rental of new and used aerial equipment. Ms. Riggs is a former employee of Ross who, upon termination, began her own business refurbishing and selling aerial equipment out of her home, in Chesterland, Ohio, as Elder High Lift, a division of Lammbros, Inc. In its complaint, appellant sought compensatory damages, punitive damages, disgorgement of profits, and an injunction restraining appellees from using trade secrets and enforcing the covenant not to compete.
After a hearing, the trial court, finding no basis for its issuance, denied appellant's motion for preliminary and permanent injunctions. In its judgment entry, filed May 23, 1997, the court concluded that there was sufficient consideration for the covenant not to compete, but that the covenant was invalid because its description of the restricted geographical territory, as the "immediate Cleveland area," was ambiguous. The court asserted that it had the power to modify the agreement under the authority of Raimonde v. Van Vlerah (1975),
On January 15, 1998, the parties entered the following joint stipulations1 with the court:
"1. Defendant Martha Riggs did offer at least one vertical lift machine for sale within Geauga County on May 31, 1997 and June 1, 1997 by displaying it in a parking lot with a For Sale sign and agrees not to continue the practice.
"2. There is no evidence that any of the Defendants have sold any of the equipment that is subject of this action within the geographic area set forth in the Decision and Judgment Entry filed May 23, 1997.
"4. The Defendants ceased doing business from Defendant Riggs' office in Chesterland, Ohio in June 1997.
"3. Within the parameters set by the Decision and Judgment Entry dated May 23, 1997, Plaintiff is unable to present any evidence of damages in any future hearing.
"4. The parties are in agreement that the Court should enter a final order dismissing the Complaint."
Pursuant to the recommendation set forth in the joint stipulations, the trial court dismissed the matter with prejudice, at appellant's costs.
Appellant raises the following two assignments of error for our review:
"[1.] The trial court erred to the prejudice of Plaintiff-Appellant by failing to enforce the covenant not to compete between Plaintiff and Defendant Martha Riggs as proposed to be modified to the Court."
"[2.] The trial court erred in finding that Defendants had not misappropriated trade secrets in violation of O.R.C.
1333.61 ."
These assignments of error deal with the merits of the rulings on the injunction and not the dismissal order, which it is appealing. This appeal appears to be an attempt by appellant to have us review the trial court's order denying its motion for an injunction. According to R.C.
Contrary to appellant's belief, nothing in the trial court's decision precluded it from going forward at trial. An injunction and a trial serve two distinct purposes. The purpose of an injunction is to restrain the commission or continuance of an act which would produce great or irreparable injury to the plaintiff, or when, during litigation, it appears defendant is doing such act in violation of the plaintiff's rights respecting the subject of the action, and tending to render any subsequent judgment ineffectual. R.C.
In appellee's pro se brief, she correctly points out that, in joint stipulations, appellant agreed it could not prove damages and that the case should be dismissed. This has the effect of a settlement agreement and the trial court did not err by interpreting them as such. A settlement agreement or stipulation, voluntarily entered into, cannot be repudiated by either party and will be summarily enforced by the court. Spercel v. SterlingIndustries, Inc. (1972),
Based on the foregoing analysis, the judgment of the trial court is affirmed. ________________________ JUDGE ROBERT A. NADER
CHRISTLEY, P.J.,
O'NEILL, J., concur.
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