Kyrkos v. Superior Beverage Group, Ltd.
2013 Ohio 4597
Ohio Ct. App.2013Background
- Kyrkos was hired by Superior as a sales rep and signed a one-year non-compete covering 31 counties.
- During training she received substantial on-the-job exposure, including field calls, travel, and access to sales systems and supplier resources.
- She resigned August 18, 2011 and began working for RC Distributors, a Superior competitor, in September 2011.
- Eight of Kyrkos’ former Superior accounts overlapped with RC Distributors, and Superior claimed revenue loss after her switch.
- Superior sought a preliminary injunction to enforce the non-compete; the court modified it to allow RC work but bar solicitation of Superior accounts for one year, effective upon the injunction.
- Kyrkos appealed, arguing the injunction and security were improper; the court found the injunction overly restrictive and granted relief in part.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was the preliminary injunction improper? | Kyrkos contends injunction was overbroad and harmed her livelihood. | Superior asserts necessity to protect confidential info and customer relationships. | The injunction was an abuse of discretion and should be vacated. |
| Is the one-year non-compete reasonable in time and scope? | One year is too long given market realities and broadened territory. | One year is reasonable to protect business interests. | Reasonableness supports enforcement, but overall injunction is still improper. |
| Is the 31-county territorial restriction overly broad? | Restriction extends beyond Kyrkos’ actual contact area. | Broad territorial protection is necessary due to market reach. | Not dispositive; factors weigh against enforcement when applied to ordinary competition. |
| Was the bond amount properly set under Civ.R. 65(C)? | Bond should reflect substantial anticipated losses to Kyrkos. | Bond amount must be supported by provable damages; $500,000 is unsupported. | Court did not abuse discretion; bond amount deemed reasonable and not set at $500,000. |
Key Cases Cited
- Raimonde v. Van Vlerah, 42 Ohio St.2d 21 (Ohio 1975) (factors for reasonableness of restraints in non-compete; judgment must favor employer only to extent reasonable)
- Rogers v. Runfola & Assoc., 57 Ohio St.3d 5 (Ohio 1991) (reasonableness of non-compete restraints; one year commonly reasonable)
- Fraternal Order of Police v. Cleveland, 141 Ohio App.3d 63 (Ohio App.3d 2001) (irreparable harm and adequacy of legal remedy; injunctive standards applied)
- Crestmont Cadillac Corp. v. GMC, 2004-Ohio-488 (Ohio 8th Dist. 2004) (injunctive relief and irreparable harm standards in corporate restraints)
- Premix, Inc. v. Zappitelli, 561 F.Supp. 269 (N.D. Ohio 1983) (irreparable harm considerations when injunction issued after substantial delay)