732 S.E.2d 676
Va.2012Background
- PSS sued GP after GP terminated its subcontract and joined Accenture for similar DLA work.
- Noncompete covenants prohibited GP from certain Accenture/DLA work for 12 months post-termination.
- Trial court found GP breached the noncompete by working for Accenture on DLA BSM-related tasks; awarded damages.
- Trade secrets claim dismissed; tortious interference claim not proven; injunctive relief denied.
- GP and PSS both appealed; court affirmed circuit court’s ruling on liability and damages.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is the noncompete enforceable or overbroad? | GP argues overbreadth/ambiguity. | PSS argues clause narrowly drawn to protect legitimate business. | Noncompete is unambiguous and enforceable. |
| Did GP breach the noncompete by working for Accenture on BSM-related work? | GP breached by providing similar support to Accenture for DLA BSM. | GP contends work was not on BSM program. | GP breach supported by evidence that BSM and EBS were interconnected; liability found. |
| Was Cuccia's testimony admissible and properly weighty? | Cuccia's testimony supported damages and funding basis. | Testimony contained hearsay/speculative elements. | Court did not err in admitting and weighing Cuccia's testimony; objections preserved and resolved. |
| Are lost profits damages for breach of noncompete proper and adequately proven? | PSS entitled to lost profits for future DLA work. | Damages speculative; no guaranteed future orders. | Damages supported by track records and preponderance of evidence; not speculative. |
| Should injunctive relief be granted given damages? | Inadequacy of monetary damages warrants injunction. | No irreparable harm; damages adequate. | No abuse of discretion; no irreparable harm shown. |
Key Cases Cited
- Omniplex World Servs. v. U.S. Investigations Servs., 270 Va. 246, 618 S.E.2d 340 (2005) (Va. 2005) (restraint on trade must be narrowly drawn for reasonableness)
- Home Paramount Pest Control Cos. v. Shaffer, 282 Va. 412, 718 S.E.2d 762 (2011) (Va. 2011) (narrowly drawn reasonableness factors for covenants not to compete)
- Appalachian Power Co. v. John Stewart Walker, Inc., 214 Va. 524, 201 S.E.2d 758 (1974) (Va. 1974) (damages measure for lost profits under contracts)