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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 signed a non-competition agreement with the company before accepting work with Glass America. Robert Staples signed an "Invention, Declaration, Confidentiality and Non-Competition Agreement" with Guardian Auto Glass in November of 2010.
According to Staples' petition for declaratory judgment, he "left Guardian Glass because he became uncomfortable with certain practices of the respondent which he believed to be unethical and probably unlawful."
Staples later accepted work at a Glass America location in Fairfax, Va, which is within one hundred mile radius of the Guardian location where he was employed. Staples and Glass America received a communication from Guardian's solicitor requesting "enforcement of the provisions of the non-competition agreement" and caution 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 massive damage award for violating the terms and conditions of the non-competition agreement and can't afford to litigate this case in the courts of the state of Michigan, approximately 400 miles away," reads Staples petition.
Staples says that the agreement prohibited him from work in any capacity with a rival, even in a position like a cleaner or janitor. He claims that there is no effort to determine whether the prohibited activity is the same kind of work as that done for the former employer.
Glass America also filed an identical petition backing Staples' claims.
Guardian replied with a motion to dismiss the complaint stating that, "the court should, in the interests of justice, enter an order staying plaintiff's complaint for declaratory relief pending the resolution in the parallel litigation before the Michigan Fed district court of Mr. Staples' outstanding motion for a section 1404 ( a ) discretionary transfer."
Guardian's motion states that Staples filed a legal action on the same afternoon as Guardian's suit was filed.
"One such equitable factor that strongly lessens in favor of dismissal of a declaratory action is, where, as here, a petitioner preemptively files for declaratory relief responding to a particular threat of a later-filed state-court action on the merits. Mr. Staples obviously filed the opening action that is now before this court in Virginia Circuit Court on April 4, 2012 in an attempt to avoid the appliance of Michigan law, to which he contractually concluded in November 2010, after receiving notice that he was going to be sued in Michigan thru Guardian's April 2, 2012 cease and refrain 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 should not 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 requires that Staples complies with the requirements listed in the non-competitive agreement, which includes returning all documents and private info to Guardian Auto Glass.
Guardian is requesting 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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