Lake Land Employment Group v. Columber, Unpublished Decision (10-16-2002)
Lake Land Employment Group v. Columber, Unpublished Decision (10-16-2002)
Opinion of the Court
This cause was heard upon the record in the trial court. Each error assigned has been reviewed and the following disposition is made: {¶ 1} Appellant, Lake Land Employment Group of Akron, LLP, appeals from the decision of the Summit County Court of Common Pleas granting summary judgment in favor of Appellee, Lee Columber. We affirm.
{¶ 2} On September 5, 2001, Appellant filed a complaint against Appellee alleging that Appellee violated a covenant-not-to-compete agreement and, therefore, Appellant sought damages, a temporary restraining order, a preliminary injunction, and a permanent injunction. Subsequently, Appellee moved for summary judgment. A magistrate determined that no genuine issue of material fact existed and entered his proposed decision granting Appellee's motion for summary judgment. Appellant objected to the magistrate's decision. The trial court overruled Appellant's objections and adopted the magistrate's proposed decision, thereby granting Appellee's motion for summary judgment. Appellant appeals from the trial court's decision and raises one assignment of error for review.
{¶ 4} In its sole assignment of error, Appellant contends that the trial court improperly granted summary judgment in favor of Appellee. Specifically, Appellant contends that the trial court erroneously relied on Prinz Office Equipment Co. v. Pesko (Jan. 31, 1990), 9th Dist. No. 14155 to render its decision that Appellant was required to offer Appellee additional consideration, beyond a mere promise of continued employment, to validate the covenant-not-to-compete agreement, which Appellee signed subsequent to his initial hire. Rather, Appellant contends that the trial court should have applied the law outlined in Bruner-Coxv. Dimengo (Feb. 12, 1997), 9th Dist. No. 17732, and, therefore, found that Appellant was not required to offer Appellee additional consideration other than continued employment to support the covenant-not-to-compete agreement. Appellant's contentions lack merit.
{¶ 5} Pursuant to Civ.R. 56(C), summary judgment is appropriate when: "(1) No genuine issue as to any material fact remains to be litigated; (2) the moving party is entitled to judgment as a matter of law; and (3) it appears from the evidence that reasonable minds can come to but one conclusion, and viewing such evidence most strongly in favor of the party against whom the motion for summary judgment is made, that conclusion is adverse to that party." Temple v. Wean United, Inc. (1977),
{¶ 6} We begin our analysis by examining Prinz and Bruner-Cox to determine whether continued employment alone is adequate consideration to support a covenant-not-to-compete agreement that an employee signs after the commencement of employment.
{¶ 9} In the case sub judice, the record indicates that Appellant employed Appellee beginning in 1988 on an at-will basis. Thereafter, in 1991, Appellee signed a covenant-not-to-compete agreement that was presented by Appellant. In exchange for his signature, Appellant admitted that it did not provide Appellee any additional consideration or benefit, but it did acknowledge that it continued to employ him with the company.
{¶ 10} Based upon the facts in this case, Appellant urges this court to follow Bruner-Cox and find that continued employment alone is sufficient consideration to support a covenant-not-to-compete agreement executed after employment has begun; however, we find that Appellant's interpretation of the Bruner-Cox decision is incorrect. Specifically, inBruner-Cox, this court did not uphold the covenant-not-to-compete provision based solely on the employee's continued employment, but additionally considered the terms of the settlement agreement, i.e., the severance pay, a favorable letter of reference, and an endorsement of any application for unemployment benefits.
{¶ 11} Therefore, we hold that a covenant-not-to-compete agreement entered into after an employee's initial hire is invalid if the agreement is merely supported by a promise of continued employment. See Prinz, supra, at 8. Consequently, Appellant was required to give Appellee additional consideration beyond continued employment and, accordingly, we find that the trial court properly granted summary judgment in favor of Appellee. Appellant's assignment of error is overruled.
{¶ 12} Appellant's sole assignment of error is overruled. The judgment of the Summit County Court of Common Pleas is affirmed.
BAIRD, J., WHITMORE, J. CONCUR.
Dissenting Opinion
{¶ 1} I respectfully dissent. The majority holds that a covenant-not-to-compete agreement signed by an employee after his or her initial hire is invalid if the agreement is solely supported by the employer's promise of continued employment. As I find that an employer's promise of continued employment is adequate consideration, I would sustain Appellant's sole assignment of error.
{¶ 2} To hold that an employer's promise of continued employment is not adequate consideration to support a covenant-not-to-compete agreement completely erodes the concept of at-will employment. Specifically, a distinction does not lie between an indefinite promise of employment made when an employee is initially hired and an indefinite promise of employment to an existing employee. Trugreen v. Richwine (June 29, 1994), 2nd Dist. No. 3098. See, also, Copeco, Inc. v. Caley (1992),
{¶ 3} As either party can easily terminate the at-will employment agreement, employers who find a legitimate need for a covenant-not-to-compete agreement will simply terminate its employees and require these employees to execute a covenant-not-to-compete agreement as a condition of being re-hired. In this situation, the agreement would be enforceable because the employer's promise to employ the employee would constitute consideration. See Custom Fountains v. Bryant (July 18, 1994), 12th Dist. No. CA93-12-097 (declaring that employer's promise of employment is sufficient consideration to support a covenant-not-to-compete agreement when the agreement and employment relationship were entered into contemporaneously). This requires both employers and employees to jump through unnecessary hoops to alter the factual pattern to create a situation where the covenant-not-to-compete agreement and employment relationship are entered into contemporaneously. Despite the show that is performed by the employer and the employee, the end result is identical to the result in the present case: the employer continues to employ the employee and the employee has signed a covenant-not-to-compete agreement. Finally, requiring employers and employees to jump through these unnecessary hoops may disrupt a congenial working relationship between employer and employee.
{¶ 4} Therefore, I find that an at-will employee's continued employment is sufficient consideration to support a covenant-not-to-compete agreement executed subsequent to the initial hire. Canter,
Case-law data current through December 31, 2025. Source: CourtListener bulk data.