Holton v. Physician Oncology Services
292 Ga. 864
| Ga. | 2013Background
- Holton was hired in Aug 2009 as VP/COO of Physician Oncology Services with a 25-mile, one-year noncompete and a two-year confidentiality covenant.
- In 2011, Physician Oncology Services merged with Vantage Oncology, expanding Holton’s scope to facilities in multiple states.
- Holton was terminated by Vantage on Oct 4, 2011, and soon after took a CEO role at ROSA, a direct competitor with several Atlanta-area centers.
- Vantage sought an injunction arguing noncompete and confidentiality covenants were breached and that Holton would misappropriate or inevitably disclose trade secrets.
- The trial court granted an interlocutory injunction prohibiting Holton from serving in an executive capacity for ROSA and from certain activities, including use or disclosure of confidential information.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the inevitable disclosure doctrine can be pursued as an independent claim | Vantage argues inevitable disclosure supports relief | Holton contends doctrine is not an independent claim under Georgia law | Doctrine not an independent claim; reverse injunction on inevitable disclosure |
| Whether the one-year noncompete injunction remains moot after expiration | Vantage asserts ongoing injunction protections | Holton contends term expired, mootness applies | Moot; appeal on that portion dismissed |
| Whether the confidentiality injunction is overbroad and improperly defined | Vantage seeks broad protection of confidential and personal information | Holton challenges breadth but invites narrowing at final hearing | Partially affirmed; confidentiality injunction upheld while noting potential overbreadth to be addressed in trial |
Key Cases Cited
- Essex Group v. Southwire Co., 269 Ga. 553 (Ga. 1998) (logistics system as trade secret upheld; tension with public-domain components considered)
- Kellam v. Guthman Laundry and Dry Cleaning Co., 147 Ga. 133 (Ga. 1917) (mootness after time for injunction expires)
- Hampton Island Founders v. Liberty Capital, 283 Ga. 289 (Ga. 2008) (preliminary injunction standards and status-quo preservation)
- Byelick v. Michel Her-belin USA, 275 Ga. 505 (Ga. 2002) (abuse of discretion standards for injunctions)