738 F.Supp.3d 950
S.D. Ohio2024Background
- Christopher Scott Gibson worked in concrete-pumping for over 20 years before joining Cretor Construction Equipment LLC in 2021, bringing established customer relationships with him.
- Upon joining Cretor, Gibson signed a noncompetition agreement as part of an incentive bonus plan, with a noncompete covenant restricting him from working with competitors within 100 miles of certain Cretor offices for one year after leaving.
- Gibson resigned from Cretor in May 2024 and immediately joined a local competitor, Southeast Ram Concrete Pumping.
- Cretor sought a temporary restraining order and preliminary injunction to enforce the noncompete, alleging potential harm from Gibson soliciting customers and using confidential information.
- The court held a hearing on Cretor’s request for injunctive relief under Ohio law, applying the Raimonde factors for noncompete enforceability.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Enforceability of Noncompete | Noncompete is reasonable in scope and needed to protect Cretor’s interests | Gibson brought his own customer base, did not gain protectable Cretor skills or contacts, and enforcement would bar his livelihood | Noncompete is not enforceable as applied; Cretor did not show a protectable interest, especially regarding preexisting customer relationships |
| Access to Confidential Information | Gibson had access to confidential pricing and customer/job information | Pricing and customer identities are public; no truly confidential info at issue | No protectable confidential information shown; factor favors Gibson |
| Harm and Irreparable Injury | Loss of customer goodwill justifies injunctive relief | Loss of all livelihood if enjoined; Cretor retains business and could not show similar harm | Harm to Gibson outweighs harm to Cretor; element favors Gibson |
| Public Interest | Public interest in enforcing contracts and protecting business interests | Public interest favors competition; consumers benefit from employee mobility | Public interest does not support injunction; enforcement would reduce competition |
Key Cases Cited
- Raimonde v. Van Vlerah, 325 N.E.2d 544 (Ohio 1975) (establishing the multi-factor test for enforceability of noncompetes under Ohio law)
- Lake Land Emp't Grp. of Akron, LLC v. Columber, 804 N.E.2d 27 (Ohio 2004) (reasonableness test for noncompetes)
- Procter & Gamble Co. v. Stoneham, 747 N.E.2d 268 (Ohio Ct. App. 2000) (upholding reasonable geographic/temporal noncompetes)
- Century Bus. Servs., Inc. v. Barton, 967 N.E.2d 782 (Ohio Ct. App. 2011) (burden of proof on employer to show enforceability of restrictive covenant)
- Chicago Title Ins. Corp. v. Magnuson, 487 F.3d 985 (6th Cir. 2007) (reasonableness and burden requirements for noncompetes under Ohio law)