Glass America and Guardian Auto Glass in Legal Battle Over Non-Competition Agreement
Rob Houglum ZIPGlassNetwork.com Thursday, May 17, 2012
A court action has been filed by a one-time Guardian Auto Glass worker who agreed a non-competition agreement with the company before accepting employment with Glass America. Robert Staples signed an "Invention, Discovery, Confidentiality and Non-Competition Agreement" with Guardian Auto Glass in Nov of 2010.
According to Staples' petition for declaratory judgment, he "left Guardian Glass as he became more uncomfortable with certain practices of the respondent which he said to be immoral and possibly unlawful."
Staples later accepted work at a Glass America location in Fairfax, Va, which is inside one hundred mile radius of the Guardian location where he was employed. Staples and Glass America received a letter from Guardian's solicitor requesting "enforcement of the provisions of the non-competition agreement" and warning of imminent legal action in Michigan.
"The desist letter has had an intended chilling effect on the petitioner in that the petitioner does not wish to risk a large damage award for violating the details of the non-competition agreement and can't afford to litigate this case in the courts of the state of Michigan, roughly four hundred miles away," reads Staples petition.
Staples claims the agreement forbidden him from work in any capacity with a competitor, even in a position like a cleaner or janitor. He claims that there's no effort to determine whether the forbidden activity is the same type of work as that done for the previous employer.
Glass America also filed an identical petition backing Staples' claims.
Guardian responded with a motion to dismiss the complaint saying that, "the court should, in the interests of justice, enter an order staying plaintiff's complaint for declaratory relief outstanding the resolution in the parallel litigation before the Michigan federal district court of Mr. Staples' outstanding motion for a section 1404 ( a ) optional transfer."
Guardian's motion states that Staples filed a lawsuit on the same afternoon as Guardian's suit was filed.
"One such equitable factor that strongly mitigates in favor of dismissal of a declaratory action is, where, as here, a petitioner preemptively files for declaratory relief replying to a particular threat of a later-filed state-court action on the merits. Mr. Staples clearly filed the initial action that is now before this court in Virginia Circuit Court on April 4, 2012 in an effort to avoid the applying of Michigan law, to which he contractually agreed in November 2010, after receiving notice that he was about to be sued in Michigan through Guardian's April two, 2012 cease and desist letter," reads Guardian's motion.
The Michigan court issued a "show cause order" that ordered Staples to show cause before the court as to the reasons why a preliminary injunction shouldn't be issued against him. Guardian claims that Staples didn't show up for that hearing and the court therefore entered an injunctive decree against Staples. This decree specifies that Staples complies with the requirements listed in the non-competitive agreement, which includes returning all documents and confidential info to Guardian Auto Glass.
Guardian is demanding that the Virginia court dismiss Staples' complaint because the Michigan court already has jurisdiction over the issue.
Tags: Guardian Glass, Glass America
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