MEMORANDUM
Presently before the court in the above-captioned matter are the motion (Doc. 63) for summary judgment by defendant and counterclaimant Wells Fargo Insurance Services, USA, Inc. (‘Wells Fargo”) and the motion (Doc. 66) for partial summary judgment by plaintiff and counterdefen-dant Darrell Diodato (“Diodato”), each pursuant to Federal Rule of Civil Procedure 56(a). These motions present manifold issues, several of which are nuanced and complex. For the reasons that follow, the court will grant in part and deny in part each motion.
I. Standard of Review
Through summary adjudication the court may dispose of those claims that do not present a “genuine issue as to any material fact” and for which a jury trial would be an empty and unnecessary formality. See Fed. R. Civ. P. 56(a). The
II. Statement of Material Facts
Darrell Diodato (“Diodato”) was employed by Wells Fargo Insurance Services USA, Inc. (“Wells Fargo”) and its predecessor entities for thirty-six years as an insurance producer. (Doc. 65 ¶ 3; Doc. 73 ¶ 3). In that role, Diodato serviced existing insurance business and originated new insurance business. (Doc. 65 ¶ 4; Doc. 73 ¶ 4). Wells Fargo paid Diodato an annual salary of approximately $230,000, provided benefits, and purportedly covered his overhead costs and business expenses. (Doc. 65 ¶¶ 5-8; Doc. 73 ¶¶ 5(a)). Diodato contends that he paid certain business expenses directly, without reimbursement, including: (1) contributions to support fundraising activities; (2) funds to entertain business contacts at annual meetings of the Bowling Proprietors Association of Pennsylvania (“BPAP”) and the Bowling Proprietors Association of America (“BPAA”); (3) a $12,000 annual deduction from his gross commission revenue to account for costs relating to the annual endorsement of the BPAP; and (4) various amounts paid to maintain the goodwill of the two Wells Fargo account executives (“AEs”) who supported him. (Doc. 73 ¶ 6).
Diodato specialized in brokering insurance for bowling alleys and family entertainment centers. (Doc. 65 ¶ 10; Doc. 73 ¶ 10). Diodato developed “numerous personal and business relationships with owners of family entertainment centers (including bowling centers)” and considers himself to be “the godfather” of the bowling alley insurance industry. (Doc. 65 ¶¶ 10-11; Doc. 73 ¶¶ 10-11). Diodato also developed relationships with the principals of four other entities who were insured as part of a captive insurance program: Car-etti, Inc., Sun Motor Cars, Inc., United Drilling, Inc., and Meckley Limestone Products, Inc. (Doc. 73 ¶ 10). Throughout his employment, Diodato gained an encyclopedic knowledge of bowling center operators and their specific insurance needs and risk management issues. (Doc. 65 ¶ 14; Doc. 73 ¶ 14). Diodato testified that approximately seventy percent (70%) of the revenue he generated was derived from bowling center owners and operators. (Doc. 65 ¶ 15; Doc. 73 ¶ 15).
At the request of his supervisor, James Voltz (“Voltz”), Diodato executed the Wells Fargo Agreement Regarding Trade Secrets, Confidential Information, NonSolici-tation, and Assignment of Inventions (the “TSA”) subject to this litigation on December 17, 2009. (See Doc. 65 ¶ 18; Doc. 73 ¶ 18; see also Doc. 65-3, Diodato Dep. Ex. A at 1-3, July 3, 2013 (“Diodato Dep.”). Diodato simultaneously executed the Wells Fargo Producer Plan (“Producer Plan”). (See Doc. 65 ¶ 19; see also Diodato Dep. Ex.’ E)). According to Diodato, Voltz
The TSA identifies the consideration supporting the agreement as follows: “continued employment by a Wells Fargo company ..., the ability to participate in a new compensation plan containing new and additional benefits which include, but are not limited to, a guaranteed draw and an increased commission percentage for new and net new revenue generated in 2010.” (Diodato Dep. Ex. A at 1). The TSA also contains a confidentiality and non-disclosure provision. This provision expressly identifies the following information as falling within the ambit of protected trade secrets: “the names, address, and contact information for any of the Company’s customers and prospective customers, as well as other personal or financial information relating to any customer or prospect.” (Id.) The TSA further contains a non-solicitation provision, which provides, in pertinent part:
I agree that for a period of two (2) years immediately following termination of my employment for any reason, I will not do any of the following, directly or indirectly or through associates, agents, or employees:
b. solicit, participate in or promote the solicitation of any of the Company’s clients, customers, or prospective customers with whom I had Material Contact and/or regarding whom I received Confidential Information, for the purpose of providing products or services that are in competition with the Company’s products or services (“Competitive Products/Services”). “Material Contact” means interaction between me and the customer, client or prospective customer within one (1) year prior to my last day as a team member which takes place to manage, service or further the business relationship; or
c. Accept insurance business from or provide Competitive Products/Services to customers or clients of the Company:
i. with whom I had Material Contact, and/or
ii. were clients or customers of the Company within six (6) months pri- or to my termination of employment.
This two-year limitation is not intended to limit the Company’s right to prevent misappropriation of its Confidential Information beyond the two-year period.
(Id. at 2). The TSA contains an integration clause acknowledging that the document constitutes the entire agreement between the parties and is a final expression of their collective intent. (Id. at 3).' It explicitly states that Diodato’s employment with Wells Fargo is “at will,” and that the TSA does not alter or modify his employment status. (Id. at 3). The companion Producer Plan identifies the “TSA Consideration” as follows: “For the 2010 Plan year only (January 1, 2010, through December 31, 2010), Participant will receive the following consideration for signing the new TSA for [Wells Fargo]: Additional 1% on New Revenue and Additional 1% on Net New Revenue.” (Id. Ex. E at 1). The Plan defines “Net New Revenue”
On April 27, 2011, Wells Fargo placed Diodato on administrative leave with pay, and on May 16, 2011, terminated his employment. (See Doc. 65 ¶¶ 37, 41; Doc. 73 ¶¶ 37(a), 41). Unsurprisingly, the parties offer drastically different accounts as to the reasons for Diodato’s discipline and ultimate termination. Diodato alleges that the TSA and Producer Plan were never a condition of producer employment with Wells Fargo. He contends that these agreements were part of an elaborate scheme by Wells Fargo to end his employment and eliminate Diodato’s access to his book of business. (Doc. 73 ¶ 18). According to Diodato, Voltz’s end game was to increase profitability by shedding Dioda-to’s salary while retaining revenues from his original book of business. (Id. ¶ 18(c)). The court notes that the only evidence supporting this version of events is Dioda-to’s declaration. (See id. (citing Doc. 73-1, Diodato Dec. ¶¶ 18-24 (“Diodato Dec. II”))).
Contrarily, Wells Fargo asserts that Diodato brokered business without a properly executed brokerage agreement, solicited insurance business without a license, bound insurance coverage without the proper documentation, attempted to issue “dummy invoices”, and instructed staff to disregard rules, all in violation of Wells Fargo’s company policy. (Doc. 65 ¶ 27; Doc. 65-6, Voltz Dep. Ex. 40 July 12, 2013 (“Voltz Dep.”) (formal disciplinary notice identifying concerns)). In a formal warning letter to Diodato, Voltz also asserts that Diodato disrupted sales meetings “with abrasive and angry comments.” (Id.)
Wells Fargo identifies an April 2011 incident as the final trigger for its decision to terminate Diodato. (Doc. 65 ¶ 29). According to Wells Fargo, Diodato forged the signature of Sun Motor Cars’ (“Sun”) chief financial officer on a warranty form appended to Sun’s insurance application, warranting that vehicles valued over $75,000 would be garaged overnight. (Id. ¶¶ 29-31). Diodato concedes that he signed the form as Sun’s chief financial officer, but he claims that he simply sought to obtain a quote for Sun’s insurance coverage. (See Doc. 73 ¶¶ 30-31). He flatly denies that his actions constitute “forgery,” noting that Sun’s officer ultimately signed the final application before coverage was bound. (See id.) The issue of the forged signature came to the surface when a luxury vehicle was stolen from Sun’s outdoor lot in April of 2011. (Id. ¶ 33). The insurer denied coverage because Sun did not garage the vehicle as warranted. (Id. ¶¶ 30, 33). Wells Fargo eventually reimbursed Sun for the $82,107 loss in lieu of the booked insurance. (See id. ¶ 34). Wells Fargo thereafter placed Diodato on administrative leave. (Id. ¶ 37). Following an audit in which many of- Diodato’s accounts scored poorly,
Following Diodato’s termination, Wells Fargo generated and distributed to its clientele approximately fifty three (53) insurance-related documents which identified Diodato as the producer on their respective accounts. (See Doc. 65 ¶ 48; Doc. 73 ¶ 48). Wells Fargo continued to run advertisements in Roller Skating Interna
In approximately July of 2011, Diodato began working with Christian Baker Company (“Christian Baker”), a competitor of Wells Fargo. (Doc. 67 ¶ 45; Doc. 77 ¶ 45). Diodato remained with Christian Baker from July of 2011 until “early 2013,” when he began working for American Insurance Administrators, Inc. (“ALA”), another competitor of Wells Fargo. (See Doc. 67 ¶¶ 45-46; Doc. 77 ¶¶ 45-46). In his declaration, Diodato “denies that he solicited contacts that he previously managed at [Wells Fargo]” but also “freely acknowledges that he maintained long-standing personal connections with many of his contacts and regards many of these persons as personal friends.” (Doc. 67 ¶¶ 47-48; Doc. 77 ¶¶ 47-48). Diodato admits that many of the clients he serviced at Wells Fargo “left or removed their accounts from [Wells Fargo] in the period following [his] termination.” (Doc. 67 ¶ 51; Doc. 77 ¶ 51). He also acknowledges that some of these customers asked him how to transfer their business from Wells Fargo to another broker. (Doc. 67 ¶ 54; Doc. 77 ¶ 54). Diodato does not deny that he was in regular business-related contact with his Wells Fargo customers throughout the duration of the non-solicitation period. (See Doc. 67 ¶¶ 65-69; Doc. 77 ¶¶ 65-69 (citing inter alia Doc. 75, Ex. A, Diodato PP (email response to Diodato from client noting that he “sent that request for transfer to Wells Fargo as you had asked”))). Wells Fargo sent cease and desist letters to Christian Baker and AIA in September of 2011 and September of 2012, informing both firms of Diodato’s breach of the TSA and demanding that each ensure Diodato’s compliance with the TSA’s terms. (See Doc. 67-6 at 12-27). As of June 2013, approximately seventy three (73) of Dioda-to’s former accounts had transferred to another broker. (Doc. 67 ¶ 73; Doc. 77 ¶ 73).
III. Procedural History
Diodato commenced this civil action by filing an eleven (11) count complaint (Doc. 1-2) on November 9, 2012, in the Court of Common Pleas for Cumberland County, Pennsylvania. Wells Fargo timely removed the litigation to this court on December 10, 2012, pursuant to 28 U.S.C. § 1446, (Doc. 1), and filed an answer and counterclaim (Doc. 5)
IV. Discussion
A. Wells Fargo’s Motion for Summary Judgment
Diodato asserts the following eleven claims in his complaint: fraudulent misrepresentation and inducement (Count I); breach of contract—good faith and fair dealing (Count II); breach of contract (Count III); violation of Pennsylvania’s Wage Payment and Collection Law (“WPCL”), 43 Pa. Stat. § 260.1 et seq. (Count IV); defamation (Count V); commercial disparagement (Count VI); unauthorized use of name or likeness in violation of 42 Pa. Cons.Stat. § 8316 (Count VII); unjust enrichment (Count VIII); declaratory judgment (Count IX); unfair competition (Count X); and violation of 15 U.S.C. § 1125 (the “Lanham Act”) (Count XI). Wells Fargo moves for summary judgment as to each claim, asserting that the record is devoid of evidence supporting Diodato’s theories of liability and that it is entitled to judgment as a matter of law.
1. Count I: Fraudulent Inducement
The gravamen of Diodato’s fraudulent inducement claim
At the outset, the court rejects Wells Fargo’s argument with respect to at-will employment. Wells Fargo is correct that the courts of the Commonwealth generally adhere to the employment at-will doctrine, which allows employers to terminate employees “for any reason or for no reason” unless a contract between the parties provides otherwise. Pipkin v. Pa. State Police,
That the claim is not barred outright does not end the court’s inquiry, however, because Wells Fargo also lodges a threefold attack at the merits of the fraudulent inducement claim, contending: first, that the gist of the action and economic loss doctrines bar the claim; second, that Dio-dato fails to adduce evidence of fraud; and third, that the parol evidence rule precludes admission of the evidence Diodato does cite. Because the court concludes that Diodato’s fraudulent inducement claim sounds in contract and is barred by the gist of the action doctrine, the court will not address Wells Fargo’s remaining arguments.
For breach of a contract to constitute an actionable common law tort, the allegedly tortious conduct at issue “must be the gist of the action, the contract being collateral.” eToll, Inc. v. Elias/Savion Adven, Inc.,
Diodato cites Sullivan v. Chartwell Investment Partners, LP,
This court recently had the opportunity to analyze the current state of this area of law in Agrotors, Inc. v. Ace Global Markets, No. 1:13-cv-1604,
In Vives, the court recognized that the Pennsylvania Superior Court has adopted a bright line rule providing that the “gist of the action” doctrine bars claims of fraud in the performance of a contract but does not bar claims for fraud in the inducement. However, the Vives court also recognized that the Third Circuit, as well as district courts within the Third Circuit, have determined that the “gist of the action” doctrine may bar claims for fraud in the inducement “where the false representations concerned duties later enshrined in the contract.” These federal cases also warned against any reliance on the distinction between fraudulent inducement and fraudulent performance claims, instead emphasizing that the doctrine requires a fact-intensive analysis. The Vives court ultimately sided with the authority within the Third Circuit and predicted that the Pennsylvania Supreme Court would find that the “gist of the action” doctrine bars fraudulent inducement claims based upon “misrepresentations as to a party’s intent to perform under a contract.”
Agrotors,
Hence, the court must examine the relationship between Diodato’s simultaneously pleaded fraudulent inducement and contract claims and determine whether the two are “interwoven,” precluding his tort claim, or whether the fraud claim is “collateral” to the TSA. See Bengal,
In fact, Diodato’s fraudulent inducement claim is not based on a single representation that is not contemplated by his breach of contract claim. In other words, nothing in the record establishes that Wells Fargo made a representation beyond the scope of the TSA. Cf. Williams,
Diodato sets forth two contract claims in his complaint: one for breach of the terms of the TSA, and one for breach of the TSA’s implied duty of good faith and fair dealing. (Doc. 1-2 ¶¶ 120-36).
To prevail on a claim for breach of contract under Pennsylvania law, a plaintiff must prove the following: (1) the existence of a contract, including its essential terms; (2) defendant’s breach of duty imposed by the terms; and (3) actual loss or injury as a direct result of the breach. See Ware v. Rodale Press, Inc.,
a. Failure to Make Payments
Diodato contends that Wells Fargo failed to compensate him as required by the TSA. He specifically alleges that Wells Fargo failed to pay him a guaranteed draw, increased commission for new revenue and net new revenue generated in 2010, and an “additional one percent (1%) payment.” {See Doc. 1-2 ¶¶ 131-34). Wells Fargo responds that undisputed record evidence establishes that Diodato was paid in accordance with the Producer Plan and that it is entitled to summary judgment on this claim. (Doc. 64 at 19-20). Wells Fargo cites the deposition testimony of John Kluxen, a Wells Fargo employee, who reviewed Diodato’s paycheck dated March 18, 2011, and testified that Diodato received a $1,186.79 payment on that date, representing one percent (1%) of new and net new revenue generated by accounts he serviced in 2010. {See Doc. 65-5, Kluxen Dep. 71:5-74:10, May 31, 2013 (“Kluxen Dep.”)).
Diodato does not respond to this evidence or otherwise support the allegations of his complaint in opposition to Wells Fargo’s motion. (See Doc. 74 at 22-26). Courts within the Third Circuit have routinely held that a non-movant’s failure to offer any response to an opposing party’s summary judgment arguments constitutes an abandonment of claims left undefended. See Nissan World, LLC v. Mkt. Scan Info. Sys., No. 05-2839,
In lieu of defending the allegations of his complaint, Diodato articulates an amended claim for breach of contract in his opposition brief, contending for the first time that Wells Fargo failed to pay more than one year’s worth of commission due upon his termination and failed to reimburse him for work-related expenses. (See Doc. 74 at 22 (alleging that Wells Fargo terminated Diodato when “approximately one year of his past commissions had been lawfully earned but unpaid” and “his expenses for April 2011 ... were on his desk ... and never provided to him despite demand”)).
It is well-settled that Diodato “may not amend his complaint in his brief in opposition to a motion for summary judgment.” Bell v. City of Phila.,
Notwithstanding Bell, Diodato fails to offer evidence which, if accepted by the jury, establishes that Wells Fargo breached a payment obligation under the TSA. Diodato acknowledges that the Producer Plan governed his compensation structure during his tenure with Wells Fargo and that the Plan provides: “Credited Commissions are deemed earned once the Participant’s Eligible Revenue has been collected by [Wells Fargo].” (Doc. 73 ¶ 5(d)). According to the Plan, “[c]ommission payments earned under the Plan will be made within 45 days after the Participant’s payment period ends” and that “payments earned ... must be made to the Participant no later than March 15th after the end of the Plan year.” (Diodato Dep. Ex E at ¶ 5(E)). The Plan further states that terminated participants “will be paid Credited Commissions earned through the Participant’s termination date less any Draw paid.” {Id. at ¶ 6(A)).
Diodato also argues that Wells Fargo must reimburse him for an estimated $750 in expenses. (Doc. 74 at 24 (citing Diodato Dec. 2 ¶ 60)). The Producer Plan provides that Wells Fargo will reimburse its producers for “reasonable business, travel and entertainment expenses” subject to its reimbursement and auto policies with prior management approval. (Diodato Dep. Ex. E at ¶ 5(E)). Wells Fargo admits that it often reimbursed Diodato for business expenses. (See Doc. 65 ¶ 8). As a result, it is plausible that Wells Fargo may, under certain circumstances and assuming requisite proof, be liable to Diodato for breach of contract for failure to reimburse expenses. (Id.) Diodato contends that “the information that would substantiate [his expenses] was on his desk as of his last day at [Wells Fargo] and [Wells Fargo] has refused to provide the same to him.” (Diodato Dec. ¶ 60). Wells Fargo notes— and Diodato does not refute—that Diodato never sought any such documents in his fifty-eight (58) separate requests for documents. (See Doc. 64 at 23 n. 5).
On this matter, the court concludes that Diodato has not established a genuine issue of material fact sufficient to survive summary judgment. Notwithstanding months of discovery and ample opportunity to develop a record, Diodato is before the court with nothing but his own unsupported assertion that he is entitled to some vague and ill articulated amounts of compensation and reimbursements. (Doc. 74 at 23 (quoting Producer Plan but contending, with reliance only on his own assertion, that Wells Fargo did not follow it); id. at 24 (requesting expenses of “approximately” $750)). Diodato fails to direct the court to any objective evidence in support of his assertions. The Third Circuit has held repeatedly that such a showing cannot survive a motion for summary judgment. See Kirleis v. Dickie, McCamey & Chilcote, P.C.,
This evidentiary vacuum similarly defeats Diodato’s WPCL claim in Count IV. Claims for violation of the WPCL are entirely contingent upon proof of a contractual obligation to pay wages and an attendant breach of that obligation. See Sheils v. Pfizer, Inc.,
b. Failure to Implement and Perform TSA in Good Faith
Diodato states a separate claim against Wells Fargo for breach of the implied duty of good faith and fair dealing under the TSA. Pennsylvania courts have adopted Section 205 of the Restatement (Second) of Contracts, which provides that every contract imposes a “limited duty” of good faith and fair dealing on each party in performing and enforcing the same. See Baker v. Lafayette College,
In any event, a claim for breach of the duty of good faith and fair dealing does not lie separately from the terms of the contract itself. See Burton v. Teleflex, Inc.,
These principles defeat Diodato’s claim. Diodato offers broad, conspirative theories with respect to Wells Fargo’s intentions in terminating his employment but does not identify a single provision of the TSA that Wells Fargo allegedly violated. (See Doc. 74 at 19-21). Nothing about Diodato’s claim is “grounded in a specific provision of the contract.” Nationwide Ins.,
3. Counts V & VI: Defamation and Commercial Disparagement
Diodato asserts the following in support of his defamation and commercial disparagement claims: (1) that Voltz informed John Zukus (“Zukus”), a Wells Fargo business manager, that Diodato’s actions were “not in Wells Fargo’s best interests”; (2) that he “painted a picture” to Richard Fiato (“Fiato”), head underwriting officer for North Pointe Insurance (“North Pointe”), that Diodato’s “business practices were suspect and that he was insubordinate”; and (3) that Wells Fargo’s counsel advised both Christian Baker and ALA by letter that Diodato was in violation of the TSA by contacting and soliciting his former clients to transfer their insurance business to Christian Baker or AIA. (Doc. 74 at 26-27).
To prevail on a claim for defamation, Diodato must adduce evidence of the following elements: (1) the defamatory character of the communication; (2) its publication by the defendant; (3) its application to the plaintiff; (4) understanding by the recipient of its defamatory meaning; (5) understanding by the recipient of it as intended to be applied to the plaintiff; (6) special harm resulting to the plaintiff from its publication; and (7) abuse of a conditionally privileged occasion. See 42 Pa. Cons.Stat. § 8343(a).
Record evidence supports Diodato’s allegation that Voltz informed Zukus that Dio-dato’s actions “weren’t in the best interests of Wells Fargo” on the Monday following Diodato’s termination. (Doc. 73-14, Zukus Dep. 49:25-50:4, (“Zukus Dep.”) Mar. 8, 2013). Similarly, Richard Fiato states in his affidavit that Voltz, on more than one occasion, “was more than willing to discuss Diodato’s termination and paint a picture that [Diodato’s] business practices were suspect and [Diodato] was insubordinate.” (Doc. 73-5, Fiato Dec. ¶¶ 12-13 (“Fiato Dec.”) (stating that “I told [Voltz] that I did not want to ‘be involved in that soup,’ but he insisted on talking to me about it”)). McKendrick states that the North Pointe meeting took place on August 3, 2011. (See Doc. 73-2, McKendrick Dec. ¶ 4 (“McKendrick Dec.”)). Wells Fargo admits that it sent multiple cease and desist letters to both Christian Baker and AIA highlighting Diodato’s perceived violations of the TSA. (See Doc. 79 at 18 (acknowledging that it sent letters to alleged “co-conspirators” seeking assistance in obtaining Diodato’s compliance with the TSA)). Hence, Diodato sufficiently identifies the statements at issue for present purposes— the inquiry for the court’s resolution is whether the communications are sufficient to establish defamation liability.
a. Voltz Statement to Zukus
Wells Fargo contends first that Voltz’s statement to Zukus regarding the reasons for Diodato’s termination is merely a statement of opinion not subject to civil liability for defamation. (See Doc. 79 at 16-17). As a general rule, statements of opinion are immune from defamation liability. See Green v. Mizner,
The court concludes that Voltz’s statement that Diodato’s actions “weren’t in the best interests of Wells Fargo” is ambiguous, obscure, and, does not imply the existence of specific defamatory facts. Mzamane,
Wells Fargo raises only one argument with respect to Voltz’s statements to Fiato during the North Pointe meeting: it posits that Diodato fads to sufficiently identify an actual statement in support of his claim. (See Doc. 64 at 23-25; Doc. 79 at 15-16). On the present record, the court must disagree.
Wells Fargo’s argument that the North Pointe statement is insufficiently identified as to time, place, and content is refuted by the record. With respect to the North Pointe meeting, the record establishes that: (1) the meeting occurred on August 3, 2011, (McKendrick Dec. ¶ 4); (2) the meeting was attended by Voltz, Fiato, and Linda Petrella, Cid); and (3) during the meeting, Voltz explicitly described Diodato as “insubordinate” and his business practices as “suspect.”
Wells Fargo also cites Holewinski v. Children’s Hosp.,
c. Cease and Desist Letters
Diodato also bases his defamation claim on the contents of various letters sent by Wells Fargo to Christian Baker and AIA following his termination. These letters advised Christian Baker and AIA principals of the terms of Diodato’s TSA and alleged that Diodato was violating the TSA with the assistance of Christian Baker and AIA. The Christian Baker letter provided, in pertinent part, as follows:
[Wells Fargo] has received information indicating that, since becoming affiliated with Christian Baker, [Diodato] has violated and is continuing to violate the contractual obligations outlined above,*564 and is doing so with Christian Baker’s aid and assistance. [Wells Fargo] has learned that [Diodato] has contacted many of [Wells Fargo’s] clients by telephone and in person and solicited them to transfer their insurance business away from [Wells Fargo]. [Wells Fargo] has also learned that [Diodato] has advised clients that, if they are not comfortable transferring their business to Christian Baker, he can “park” their business at [AIA] for a period of time.... This conduct directly violates [Diodato’s] post-employment contractual, statutory, and common-law obligations ....
(Doc. 67-6 at 12-15). Wells Fargo additionally demanded that Christian Baker ensure Diodato’s compliance with the terms of the TSA and advised that it would enforce its rights in court if necessary. (Id.) The content and demands of the AIA letter are virtually identical to the language of the Christian Baker letter quoted above, with relevant substitutions pertinent to the recipient. (Id. at 16-19). Wells Fargo additionally informed AIA that it had “learned that Diodato has advised clients that, while he does not currently work for AIA, he will be working for AIA in the future and ... can continue to provide insurance brokerage services to them despite the fact that he does not work for AIA.” (Id. at 18).
Wells Fargo does not deny authoring or mailing these letters. (See Doc. 79 at 18). Rather, it contends that each of the letters is subject to a competitors privilege. (Id.) It directs the court to Gresh v. Potter McCune Co.,
Wells Fargo argues that, like the employer in Gresh, it reasonably believed that its efforts were necessary to protect its interests as identified in the TSA. (Doc. 79 at 18 (“Just like the former employer in Potter McCune, [Wells Fargo] reasonably believed that it had a protectable interest—its customer relationships, goodwill, and customer information—that it had protected by restrictive covenant, and sent a letter to Christian Baker and AIA in an effort to prevent further breaches.”)). Such interests are legitimate and protecta-ble. See infra at 568-69. Diodato offers only the conclusory contention that no privilege attaches to the cease and desist letters because “Christian Baker and AIA were competitors” of Wells Fargo and “Diodato was employed by Christian Baker” when the letters were sent. (Doc. 74 at 29). Diodato fails to demonstrate that Wells Fargo abused the competitive privilege. See Wilson,
4. Count VIII: Unjust Enrichment
To prevail on a claim for unjust enrichment, Diodato must prove that: (1) he conferred a benefit on Wells Fargo; (2) that Wells Fargo appreciated the benefit; and (3) under the circumstances, “it would be inequitable for the defendant to retain the benefit without payment” to Diodato. Mass. Mut. Life Ins. Co. v. Curley,
With respect to commissions allegedly earned and owing, Diodato transparently attempts to restate his contract claim as one sounding in equity. (See Doc. 74 at 22 (contending, in support of breach of contract claim, that Wells Fargo failed to pay him commission due and owing under the Producer Plan); Doc. 74 at 30 (same in support of unjust enrichment claim)). The court concluded supra that Diodato’s breach of contract claim lacks evidentiary support and does not survive summary judgment. See supra at 556-59. Dioda-to’s unjust enrichment claim as to unpaid commissions is entirely contingent upon proof of the same facts underlying his breach of contract claim. His failure to offer any evidence beyond his own ipse dixit assertions is fatal to this aspect of his unjust enrichment claim. See Podobnik v. U.S. Postal Service,
Diodato also alleges that Wells Fargo has been unjustly enriched by continuing to generate commissions on accounts that he secured and serviced throughout his thirty-six (36) year career with Wells Fargo and its predecessor entities. (Doc. 74 at 32). In his opposition materials, Diodato fails to provide any record support for this assertion. (See id.) Indeed, the record is devoid of proof that Wells Fargo continued to unjustly receive any benefit after Diodato’s termination. (See id.) Moreover, courts routinely reject unjust enrichment claims when a plaintiff is hired for a particular purpose, accomplishes that purpose, and is compensated for those services. See, e.g., McGoldrick v. TruePosition, Inc.,
5. Count IX: Declaratory Judgment
In Count IX, Diodato seeks a declaratory judgment that the TSA is void or voidable: (1) for lacking consideration; (2) as not being executed contemporaneous to any change in his employment terms or conditions; (3) as not being incident to an employment relationship; (4) as unnecessary for the protection of Wells Fargo; (5) as being an unlawful attempt by Wells Fargo to oppress Diodato’s attempts to solicit business contacts he generated throughout his career; (6) as being unreasonable in scope; (7) as being unreasonable in duration; (8) for Wells Fargo’s failure to comply with its material terms; and (9) as a result of fraud in the inducement. (Doc. 1-2 at ¶¶ 178-185). In his brief in opposition to summary judgment, Diodato abandons many of these theories, asserting only that it is void for fraud in the inducement and that the TSA is not necessary to protect a legitimate Wells Fargo interest. (See Doc. 74 at 36-38 (contending that the covenant is “born out of fraud [and] used to protect interests that are not lawfully capable of protection” and as such unenforceable)).
The parties agree as to the principal terms of the TSA. (See Doc. 65 ¶¶ 18, 20; Doc. 73 ¶ 20). It provides, in relevant part, that in consideration for continued employment with Wells Fargo, the ability to participate in a new compensation plan, and an increased commission on new and net new revenue in 2010, Diodato, upon termination, will return to Wells Fargo all confidential information obtained through- ■ out his employment and will refrain from soliciting Wells Fargo’s customers and employees for a period of two (2) years. (Diodato Dep. Ex. C at 1-2). In its motion and brief, Wells Fargo contends that the TSA is supported by adequate consideration insofar as it was executed in exchange for Diodato’s continued employment and a one percent (1%) additional commission on new revenue and net new revenue, (Doc. 74 at 27-28), and that it was reasonably limited in scope and duration.
a. Fraudulent Inducement
The gist of the action doctrine bars a common law claim for fraudulent inducement arising from the TSA. See supra at 553-56. Hence, Diodato’s allegations of fraud are most appropriately analyzed in the context of the TSA itself, as part of his declaratory judgment claim. Diodato argues that the TSA is void because Wells Fargo “obtained his signature by way of false representations” and “falsely represented to [Diodato] that he had to sign the TSA as a condition of retaining his employment.” (Doc. 74 at 36). Wells Fargo responds that Diodato adduced no evidence of fraud, and that the evidence proffered is barred by the parol evidence rule. (See Doc. 64 at 12-18, Doc. 79 at 4-7). The court agrees with Wells Fargo that the parol evidence rule bars each representation cited by Diodato.
The parol evidence rule states that when the parties have adopted a writ
In the instant matter, the TSA contains a clear and unambiguous integration clause. (Diodato Dep. Ex. A. at 3 (“This Agreement supersedes any prior written or verbal agreements pertaining to the subject matter herein, and is intended to be a final expression of our Agreement with respect only to the terms contained herein.”)). The presence of an integration clause alone encourages application of the parol evidence rule. See, e.g., HCB Contractors v. Liberty Place Hotel Assocs.,
Moreover, Diodato does not allege fraud in the execution. Rather, he styles his claim as one of fraudulent inducement and contends that Wells Fargo made certain false representations prior to the TSA’s execution to induce his agreement to the same. Specifically, he contends that he was misled with regard to whether the TSA was a condition of continued employment with Wells Fargo and as to the additional consideration to be received as consideration for signing the TSA. (See Doc. 74 at 36). Each of the purported representations relate to subjects specifically addressed in the written contract, falling squarely within the parameters of the par-ol evidence prohibition. (See Diodato Dep. Ex. A at 1 (acknowledging TSA is executed “[i]n consideration for my continued employment by a Wells Fargo company”); Diodato Dep. Ex. E at 1 (“For the 2010 Plan year only (January 1, 2010 through December 31, 2010), [Diodato] will receive the following consideration for signing the new TSA ...: Additional 1% on New Revenue and Additional 1% on Net New Revenue.”)). Diodato’s claim is based not on a fraud extraneous to the contract or in its execution; it rests entirely on subject matter addressed by the express terms of the agreement. Evidence of these pre-con-tract representations is expressly excluded by the parol evidence rule. See Yocca,
b. Protectable Interests
Diodato contends that the TSA was not reasonably necessary to protect Wells Fargo’s interests. (Doc. 74 at 37). To ensure that post-employment covenants do not unduly burden a former employee’s ability to earn a living, courts in Pennsylvania enforce such restrictions only when they are: (1) incident to an employment relation between the parties to the covenant; (2) reasonably necessary for the protection of the employer; and (3) reasonably limited in geographic and temporal scope. Quaker Chem. Corp. v. Varga,
Post-employment restrictions are enforceable as “reasonably necessary for the protection- of the employer when ... narrowly tailored to protect an employer’s legitimate interests.” Colorcon, Inc. v. Lewis,
The right of employers to protect their various interests by contractual covenant is not without limitation, however, and such covenants are to be strictly construed particularly when an employee involuntarily separates from his former employer. See Colorcon, Inc.,
Notwithstanding a restriction’s general enforceability, courts in equity may limit “enforcement ... to those portions of the restrictions which are reasonably necessary for the protection of the employer.” Plate Fabrication & Mach’g, Inc. v. Beiler, No. 05-2276,
The court will exercise this discretion in the matter sub judice. In doing so, the court must balance Wells Fargo’s legitimate need to protect its investment against Diodato’s right to earn a living in his chosen field, and then determine whether the TSA “comes reasonably close to that balance.” Victaulic Co. v. Tieman,
The non-solicitation clause contained in Wells Fargo’s TSA goes well beyond prohibiting the active solicitation of clients and prohibits the passive acceptance of unsolicited former clients who contact Dio-dato unilaterally. (See Diodato Dep. Ex. C at 2). Pursuant to its terms, Diodato may not “directly or indirectly ... [a]ccept insurance business from or provide Competitive Products/Services to customers of [Wells Fargo] ... with whom [he] had Material Contact, and/or ... were clients or customers of [Wells Fargo] within six (6) months prior to [his] termination of employment.” (Id.) By its disjunctive terms, the TSA prohibits Diodato from accepting the business of both clients of Wells Fargo with whom he had material contact and any customer that was a customer of any Wells Fargo affiliate or entity within six months preceding his termination, regardless of whether Diodato had contact with that client. (Id.)
This non-acceptance provision unreasonably restrains not only Diodato’s ability to earn a living following his termination, see PharMethod,
The court concludes that the TSA’s post-employment prohibition on accepting the unsolicited business of former clients is broader than necessary to protect against the concerns articulated by Wells Fargo. (See Doc. 64 at 39 (noting that intent of TSA is to protect against solicitation of customer goodwill generated through Diodato’s efforts in his capacity as an employee of Wells Fargo)). The court will exercise its discretion and strike the non-acceptance provision from the TSA. Accordingly, as to Diodato’s declaratory judgment claim, the court will grant Wells Fargo’s motion to the extent it pertains to the non-solicitation provisions of the TSA but deny the motion as to the non-acceptance provision. The latter provision is unenforceable as a matter of law.
In Count IX, Diodato asserts a claims for false advertising in violation of the Lanham Act, 15 U.S.C. § 1125(a).
Wells Fargo argues in support of its motion only that Diodato failed to assert a claim for false advertising in his complaint and is precluded from pursuing such a claim now. The court rejects this argument. As noted supra, Diodato’s complaint clearly contemplates a false advertising claim, noting that his Lanham Act claim is one for both false designation and “false or misleading description of representation or fact.” (Doc. 1-2 ¶ 193). Dio-dato also expressly states the statutory requirements of a false designation claim, (see id. ¶ 193(a) (quoting 15 U.S.C. § 1125(a)(1)(A))), and a false advertising claim, (see id. ¶ 193(b) (quoting 15 U.S.C. § 1125(a)(1)(B))). Wells Fargo had notice of this claim from the very outset of this litigation. (See Doc. 1-2 ¶ 193(b)). Wells Fargo does not challenge the merits of Diodato’s false advertising claim. Accordingly, the court will deny its motion.
7. Count X: Unfair Competition
Wells Fargo argues that Diodato’s common law unfair competition claim fails as a matter of law because Diodato has failed to prove a violation of the Lanham Act. (See Doc. 64 at 42-43). Wells Fargo is correct to the extent it contends that the Pennsylvania common law of unfair competition generally tracks federal law. See Groupe SEB USA Inc. v. Euro-Pro Op. LLC, No. 14-137,
8. Count VII: Unauthorized Use of Name or Likeness
Wells Fargo also seeks summary judgment as to Diodato’s statutory claim for unauthorized use of his name, in violation of Pennsylvania’s Unauthorized Use of Name or Likeness statute. See 42 Pa. Cons.Stat. § 8316. Section 8316 creates a cause of action for any “person whose name or likeness has commercial value and is used for any commercial or advertising purpose without written consent....” Id. The statute defines “name or likeness” as any “attribute of a natural person that serves to identify that natural person to an ordinary, reasonable viewer or listener, including, but not limited to, name, signature, photograph, image, likeness, voice, or a substantially similar imitation of one or more thereof.” Id. § 8316(e). It defines “commercial value” as “valuable interest in a person’s name or likeness” developed by investing “time, effort and money.” Id.; see also Facenda v. N.F.L. Films, Inc.,
The parties dispute whether Diodato has sufficiently established commercial value in his name for purposes of unauthorized use liability. (Doc. 64 at 43; Doc. 74 at 43-44). Diodato contends that he “is not merely a salesperson” but rather is the “ ‘Godfather’ of the bowling insurance industry.” (Doc. 74 at 44 (citing Doc. 65 ¶ 11)). The record reveals that Diodato has developed long-standing personal relationships with many of the clients he serviced while working for Wells Fargo, and he argues that, in the context of the roller skating and bowling alley insurance businesses, his name “has significant commercial value.” (Id. (citing Doc. 65 ¶¶ 12-13, 17)). Diodato states that he developed this book of business “long before he was ever affiliated with [Wells Fargo].” (Doc. 73 ¶ 12 (quoting Diodato Dec. ¶ 15)). He avers that: (1) he spent his own money supporting various fundraising activities; (2) he entertained contacts at annual industry meetings; and (3) he paid $12,000 annually from his own commission revenue to account for costs relating to Wells Fargo’s endorsement .of the BPAP. (Id. ¶ 6). He asserts that this evidence
The court agrees: on this record, a jury could reasonably find that Diodato under
B. Diodato’s Motion for Summary Judgment
In addition to denying each of Diodato’s principal claims, Wells Fargo asserts five of its own counterclaims for: breach of contract (Count I); misappropriation and misuse of trade secrets in violation of Pennsylvania’s Uniform Trade Secrets Act (“PUTSA”), 12 Pa. Cons.Stat. § 5301 (Count II); unfair competition (Count III); conversion (Count IV); and tortious interference with prospective and existing business relations (Count V). Diodato moves for summary judgment as to each of these claims. The court addresses each count seriatim.
1. Count I: Breach of Contract
Wells Fargo first asserts a claim against Diodato for breach of the TSA, specifically for violation of its non-solicitation, nondisclosure, and non-acceptance provisions. (Doc. 5 ¶¶ 53-57). Diodato raises three arguments with respect to this claim: (1) that Wells Fargo does not have standing to request injunctive relief and that, if it does, the doctrine of laches precludes such relief; (2) that Wells Fargo waived its right to request compensatory or punitive damages in the TSA; and (3) that Diodato did not breach the TSA. (Doc. 68 at 4, 10, 21).
a. Injunctive Relief
Diodato’s argument with respect to injunctive relief is two-fold: first, that Wells Fargo is without standing to enjoin him from servicing or soliciting former clients because it abandoned its insurance brokerage services and, second, that Wells Fargo delayed unreasonably in asserting its rights to enjoin any solicitation that did occur. (Doc. 68 at 11-13). Wells Fargo expressly acknowledges that it may no longer seek to enforce the non-solicitation restrictions of the TSA, which expired in May of 2013. (Doc. 79 at 42 (“[Wells Fargo] is not seeking such relief in the form of an injunction; the non-solicitation provision is expired.”)). Instead, it seeks equitable relief, in the form of the return of certain intellectual property that Diodato allegedly took with him when he left Wells Fargo. {See id.) Hence, the court will grant Diodato’s motion on Wells Fargo’s claim for injunctive relief pursuant to the TSA’s non-solicitation provisions.
b. Actual Damages
Diodato next asserts that Wells Fargo waived its right to compensatory or punitive damages in the TSA and that, in any event, Wells Fargo failed to prove that it suffered financial damages to any degree of certainty. Regarding waiver, Diodato
Recognizing the irreparable nature of the injury that could be done by my violation of this Agreement and that money damages would be inadequate compensation to the Company, it is agreed that any violation of this Agreement by me should be the proper subject for immediate injunctive relief, specific performance and other equitable relief to the Company.
(Diodato Dep. Ex. A at 3). Diodato contends that Wells Fargo “limited the scope of its remedy to injunctive relief only” such that its claim for legal damages must be dismissed. Diodato directs the court to Haldeman v. Towers, Perrin, Forster & Crosby,
Haldeman offers persuasive instruction. In Haldeman, the plaintiff employee accepted an opportunity to become a shareholder of his consulting firm and, by virtue of this acceptance, became subject to its bylaws. Id. at 428-29. The bylaws included a noncompetition clause with the following remedies provision:
Should [the plaintiff] so compete, the obligation of the Corporation to make any payments either to him or his estate with reference to his stock shall be limited- exclusively to repayment of the purchase price paid by the Stockholder for his Common Stock, and each Stockholder agrees that the loss to him of the appreciation, if any, on the value of the Common Stock ... is an inadequate remedy to the Corporation on account of such default and that, as an additional and cumulative remedy, the Corporation may, in its discretion and for the protection of its goodwill and client relationships, seek and secure appropriate equitable relief, by injunction or otherwise, to ensure the performance by the former Stockholder of his obligation not to compete.
Id. at 429. The bylaws further provided that any difference of opinion with respect to these terms would be submitted to arbitration. Id. Plaintiff subsequently left the firm and solicited his former clients in apparent violation of the noncompetition clause. Id. at 427-29. After the firm sought to arbitrate, plaintiff moved the Philadelphia Court of Common Pleas to enjoin arbitration, arguing that the damages provision was not amenable to varying interpretations and thus the dispute not appropriately subject to arbitration. See id.
The court observed that the agreement clearly set forth the firm’s available remedies, and that there is “no language ... which provides for compensation to the employer for its losses.” Id. at 430-31. It noted that the firm drafted the bylaws, and that plaintiff had neither a role in negotiating nor influence over their terms. See id. at 431. Reciting the oft-reiterated and cardinal principle of contract interpretation that ambiguities shall be construed against the drafter, the court concluded that “any doubt over whether the clause in question entitles the defendant to collect money damages must be resolved against the defendant.” Id. (emphasizing that the “well settled ... rule of law governing the interpretation of a noncompetition clause requires an ambiguity to be construed against the drafter”). The court held that damages beyond those identified in the agreements’ remedies clause were unavailable to the firm. See Haldeman,
c. Merits of the Breach of Contract Claim
Lastly, the court turns to the merits of Wells Fargo’s claim for breach of the TSA. As noted above, to prevail on a breach of contract claim under Pennsylvania law, a plaintiff must prove the existence of a contract, its essential terms, and the defendant’s breach of a duty imposed by those terms. See Ware,
Diodato maintains that he did not solicit clients that he previously managed while working for Wells Fargo. (Doc. 67 ¶ 47). In response, Wells Fargo highlights Dioda-to’s own concession that he maintained close and regular contact with former clients during the two-year non-solicitation period, (Doc. 77 ¶ 53), and that initial records reveal that seventy-six (76) of the accounts he serviced at Wells Fargo had transferred their business by June of 2013. (Doc. 67 ¶ 73; Doc. 77 ¶ 73). Diodato’s declaration about the nature of his communications with his former clients is vague at best, (see Doc. 67 ¶48 (“Mr. Diodato freely acknowledges ... that he maintained long-standing personal connections with many of his contacts and regards many of these persons as personal friends.”)), but the record evidence as a whole, viewed in the light most favorable to Wells Fargo as the non-movant, permits an inference that Diodato solicited his former clients in violation of the TSA. (See Doc. 67 ¶ 73; Doc. 77 ¶¶53, 73, 65-69 (citing inter alia Doc. 75, Ex. A, Diodato PP (email response to Diodato from client noting that he “sent that request for transfer to Wells Fargo as you had asked”))). Genuine issues of fact persist with respect to whether Diodato solicited his former clients or whether Diodato merely accept
2. Count II: Misappropriation and Misuse of Trade Secrets in Violation of the Pennsylvania Uniform, Trade Secrets Act (‘PUTSA”)
Diodato’s challenge to Wells Fargo’s PUTSA claim takes two forms: first, that the gist of the action doctrine bars both the PUTSA claim and the remainder of Wells Fargo’s common law tort claims and, second, that Wells Fargo has failed to establish the existence of trade secrets or reasonable efforts to protect them.
Wells Fargo responds to Diodato’s gist of the action doctrine argument by observing that no court has ever applied the doctrine to bar statutory claims. (See Doc. 75 at 29-30). Indeed, at least three district courts within the Third Circuit have declined to apply the doctrine to preclude statutory claims in light of the dearth of authority supporting such an application. See Sproul Hill Assocs., L.P. v. Newell Rubbermaid Inc., No. 13-4998,
Diodato alternatively argues that Wells Fargo fails to identify any trade secrets or prove that it reasonably protected those secrets as required by the statute and by case law interpreting the same. (See Doc. 68 at 31-32). PUTSA defines “trade secrets” as follows:
Information, including a formula, drawing, pattern, compilation including a customer list, program, device, method, technique or process that:
(1) Derives independent economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can obtain economic value from its disclosure or use.
(2) Is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.
The TSA defines the term “trade secret” to include: the names, addresses, and contact information of Wells Fargo’s clients, as well as personal or financial information relating to those customers and information regarding, inter alia, account numbers, balances, maturity or expiration or renewal dates, and policies; any information concerning Wells Fargo’s operations, including, inter alia, its methods, services, pricing, costs, margins, markups, finances, business plans and strategies, decision making, marketing, policies, and procedures; and “any other proprietary and/or confidential information relating to the Company’s customers, employees, products, services, sales, technologies, or business affairs.” (Diodato Dep. Ex. A at 1). Wells Fargo contends that by directing the court to the terms of the TSA, it has specifically identified the trade secrets at issue as: information concerning customers and potential customers; details of its customers’ insurance needs and policies; non-public internal procedures, programs, and forms; nonpublic lists of prospective and insured customers; non-public information regarding such facts as habits and insurance needs of customers, locations, and descriptions of properties; expiration dates of policies; and insurance daily reports. (Doc. 76 at 11-12 (citing Doc. 5 ¶¶ 26, 39-44)). Wells Fargo cites only its pleading in enumerating these alleged trade secrets.
At this juncture, Wells Fargo cannot simply rest on the allegations of its counterclaim; rather, it must come forward with objective evidence that Diodato misappropriated information or property and that the information or property he took constitutes a trade secret as contemplated by Pennsylvania law. Wells Fargo’s opposition falls short of this mark. Indeed, when challenged by Diodato to identify specifically the trade secrets that Diodato misappropriated, Wells Fargo cites only to the allegations of its counterclaim and its own personal definition of “trade secret” as set forth in the TSA. (Doc. 76 at 11-12 (citing Doc. 5 ¶¶26, 39-44)). Cf. Bimbo Bakeries USA, Inc. v. Botticella,
On the Rule 56 record, analysis of Wells Fargo’s claim is problematic. Wells Fargo devotes two pages in opposition to Dioda-to’s arguments. Wells Fargo does not direct the court to any evidence tending to establish that Diodato retained and misappropriated unique, proprietary information falling within either PUTSA’s or the TSA’s definition of trade secrets. Wells Fargo’s claim rests entirely on the allegations of its pleading, (see Doc. 75 at 11-13 (citing Doc. 5 ¶¶26, 39^44 (counterclaim))), which, at first blush, appears to present a prima facie case of trade secret misappropriation. It is one thing to allege misappropriation of a trade secret, which allows a claim to survive the Rule 12 stage. At this stage, however, Wells Fargo must cite evidence— beyond its own allegations—identifying each allegedly misappropriated trade secret and the manner in which that secret was misappropriated by Diodato to Wells Fargo’s detriment.
As the court has reiterated throughout this opinion, the Rule 56 standard demands more: “to survive summary judgment, a party must present more than just ‘bare assertions, eonclusory allegations or suspicions’ to show the existence of a genuine issue.” Podobnik,
3. Count III, IV, and V: Unfair Competition, Conversion, and Tortious Interference with Prospective Business Relations
Diodato lastly contends that the gist of the action doctrine bars Wells Fargo’s re
As observed above, a breach of a contract does not constitute an actionable tort unless the allegedly tortious conduct is “the gist of the action, the contract being collateral.” eToll,
The crux of Wells Fargo’s claims against Diodato is his alleged violation of the TSA, specifically its provisions regarding non-solicitation and confidentiality. Wells Fargo’s description of various claims in its opposition brief confirms this point. (See Doc. 75 at 33). In describing the proof requisite to support its tortious interference claim, Wells Fargo indicates that it “will draw on the deep well of evidence that Diodato attempted to, and did, direct [Wells Fargo’s] clients to AIA, serviced their business at AIA, and was in continuous contact with [Wells Fargo’s] customers throughout this period.” (Id.) This description is nothing more than Wells Fargo’s breach of contract claim restated to eliminate references to the TSA. The conduct underlying Wells Fargo’s tor-tious interference claim is quite plainly and specifically addressed by the non-solicitation provision of Diodato’s agreement. eToll,
V. Conclusion
For all of the foregoing reasons, the court will grant in part and deny in part both motions. An appropriate order will issue.
ORDER
AND NOW, this 8th day of September, 2014, upon consideration of the motion (Doc. 63) for summary judgment by defendant and counterclaimant Wells Fargo Insurance Services, USA, Inc. (“Wells Fargo”) and the motion (Doc. 66) for partial summary judgment by plaintiff and coun-terdefendant Darrell Diodato (“Diodato”), each pursuant to federal Rule of Civil Procedure 56(a), and for the reasons set forth in the accompanying memorandum, it is hereby ORDERED that:
1. Wells Fargo’s motion (Doc. 63) is GRANTED in part and DENIED in part as follows:
a. The motion is GRANTED with respect to Diodato’s claims for fraudulent inducement (Count I), breach of contract-good faith and fair dealing (Count II), breach of contract (Count III), violation of Pennsylvania’s Wage Payment and*580 Collection Law (Count IV), and unjust enrichment (Count VIII).
b. The motion is further GRANTED with respect to Diodato’s claims for defamation and commercial disparagement (Counts V and VI) to the extent those claims pertain to James Voltz’s statement that Dio-dato’s actions “were not in the best interests of Wells Fargo” and to Wells Fargo’s cease and desist letters sent to Christian Baker Company and American Insurance Administrators, Inc. The motion is otherwise DENIED as to Counts V and VI.
c. The motion is further GRANTED with respect to Diodato’s claims for declaratory judgment (Count IX) to the limited extent it pertains to the non-solicitation provision of the Wells Fargo Agreement Regarding Trade Secrets, Confidential Information, Non-Solicitation, and Assignment of Inventions (the “TSA”). The motion is otherwise DENIED as to Count IX.
d. The motion is DENIED with respect to Diodato’s claims for unauthorized use of name or likeness in violation of 42 Pa. Cons.Stat. § 8316 (Count VII), unfair competition (Count X), and false advertising in violation of the Lanham Act, 15 U.S.C. § 1125(a) (Count XI).
2.Diodato’s motion (Doc. 66) is GRANTED in part and DENIED in part as follows:
a. The motion is GRANTED to the extent the court concludes that Wells Fargo cannot seek injunctive relief or monetary damages for its breach of contract counterclaim (Count I). The motion with respect to Count I is otherwise DENIED.
b. The motion is GRANTED with respect to Wells Fargo’s counterclaims for violation of the Pennsylvania Uniform Trade Secrets Act, 12 Pa. Cons.Stat. §§ 5301 et seq. (Count II), unfair competition (Count III), conversion (Count IV), and tortious interference with prospective business relations (Count V).
3. The non-acceptance provision of the TSA prohibiting Diodato’s passive acceptance of former clientele’s business when unilaterally approached by those clients is DECLARED VOID as over-broad and not reasonably necessary for the protection of Wells Fargo’s legitimate interests.
4. Entry of judgment pursuant to paragraphs 1, 2, and 3 is DEFERRED pending final resolution of this litigation.
5. This matter shall proceed to trial on the following claims:
a. Diodato’s claims for defamation and commercial disparagement to the extent those claims pertain to James Voltz’s statements that Dio-dato is “insubordinate” and his busi-néss practices are “suspect” (Counts V and VI); unauthorized use of name or likeness in violation of 42 Pa. Cons.Stat. § 8316 (Count VII); unfair competition (Count X); and false advertising in violation of the Lanham Act, 15 U.S.C. § 1125(a) (Count XI).
b. Wells Fargo’s counterclaim for breach of contract (Count I) to the extent Wells Fargo may seek equitable relief or nominal damages for Diodato’s violation of the non-solicitation provisions of the TSA.
*581 6. A revised scheduling order setting this matter for trial shall issue by future order of the court.
Notes
. To the extent facts are undisputed or supported by record evidence, the court cites directly to the parties' statements of material facts.
. Diodato devotes much of his responsive statement of facts to the internal audit of his accounts and the legitimacy of the audit process. (See Doc. 73 ¶¶ 39-40). The court ultimately concludes that the circumstances surrounding Diodato’s administrative leave and termination are largely irrelevant to the claims he asserts. See infra at 555 n. 7, 26-30. Hence, the court will not address these issues.
. At the time of Diodato’s departure;- Plank and McKendrick were the only other Wells Fargo employees to service bowling industry accounts. (Doc. 65 ¶ 56; Doc. 73 ¶ 56).
. Wells Fargo’s answer and counterclaim appears twice on the docket, at Docket Entries No. 5 and No. 10. The two pleadings appear to be identical. To the extent necessary, the court will refer to the first-filed answer and counterclaim at Docket Entry No. 5.
. In his complaint, Diodato asserts claims for both fraudulent inducement and fraudulent misrepresentation. (See Doc. 1-2 at 22). In his brief in opposition to Wells Fargo's motion, Diodato pursues only a fraudulent inducement claim. (See Doc. 74 at 9-16). Consequently, the court deems any claim for fraudulent misrepresentation to be waived.
. The Pennsylvania Supreme Court has not expressly adopted the gist of the action doctrine, but the Third Circuit Court of Appeals and Pennsylvania Superior Court have predicted that it will do so. See Williams v. Hilton Group, PLC,
. Diodato alternatively contends that Wells Fargo concealed its discretionary authority to terminate Diodato at the time he signed the TSA, providing another basis for his claim. (See Doc. 74 at 10). The court rejects this argument. Diodato concedes his employment was at will. (Diodato Dep. 40:17-41:18, (acknowledging that employment with Wells Fargo was at will and that nothing in the TSA modified his at-will employment status)). Further, the TSA expressly states that Wells Fargo retains the right to terminate Diodato's employment at any time, for any reason. (Diodato Dep. Ex. E at 5 (Producer Plan expressly disclaiming any contract of employment and restating that employment is at will)). Therefore, Diodato’s argument that Wells Fargo falsely concealed its right to terminate him at its discretion is unavailing.
. The court acknowledges that Bell is a non-precedential decision but is nonetheless persuaded by the panel’s ratio decidendi and the policy considerations underlying the same.
. In support of his claim that Wells Fargo received revenue up to a year before remitting his commission, Diodato contends that "the insurance industry as a commercial practice pays agency commissions at the outset of the coverage year,” which, coupled with the Plan language and "[Wells Fargo’s] practice of paying those commissions one year in arrears, leaves [Wells Fargo] liable to pay approximately one year of commission upon a broker's termination.” (Doc. 74 at 25). The record is devoid of evidence with respect to both insurance industry practices in general and the particular practices of Wells Fargo. Hence, Diodato’s theory is wholly unsupported by record evidence.
. Not only did O’Donnell involve conflicting evidence, including testimony, expense reports, exact figures, and summaries of the nature of the expenses, the issue of unpaid reimbursable expenses was also not contested by the defendant. O'Donnell,
. Section 205 provides: "Every contract imposes upon each party a duty of good faith and fair dealing in its performance and its enforcement.” Restatement (Second) of Contracts, § 205.
.Diodato concedes, as noted supra, that his employment with Wells Fargo was at will. {See Diodato Dep. 40:17-41:18). He posits that his bad faith claim is based not on any contract of employment, but rather on Wells Fargo’s performance under the TSA. {See Doc. 74 at 21 ("Count II of the Complaint sounds in breach of the duty of good faith and fair dealing. It pertains to [Wells Fargo’s] failure to honestly and fairly perform the TSA... .Count II pertains to [Wells Fargo’s]
. Diodato's own testimony confirms this point. Diodato was asked during his deposition what he believes "Wells Fargo has done to breach the covenant of good faith and fair dealing?” (Diodato Dep. 56:8-10). He replied that he "was employed with Wells Fargo and all their purchases through 35 years,” that he “worked hard every week ... [and] gave up family life for this company,” and that, despite his efforts, Wells Fargo terminated his employment. (Id. 59:19-21 ("The contract is me working for this company and giving my soul to it. Their breach of contract was they tossed me aside like a sack of potatoes.”)). In fact, the bulk of his argument simply rehashes the circumstances of his termination. (See Doc. 74 at 19 ("[Wells Fargo's] decision to terminate [Diodato] was riddled with bad intentions .... ”); id. ("[F]rom the outset ..., [Wells Fargo] desired to terminate [Diodato].”); id. at 19-21 (lodging various attacks at Wells Fargo’s stated reasons for terminating him)). And when asked specifically to identify whether "Wells Fargo breached a contract with you” and to identify the written contract provisions, Diodato responded: "It’s a contract of humanity. This company lost its humanity.” (Diodato Dep. 69:1— 3).
. The parties and the court agree that the legal standard applicable to a commercial disparagement claim is identical to that applicable to a defamation claim. (Doc. 64 at 24; Doc. 74 at 29); also QVC, Inc. v. MIC Am., Ltd., No. 08-3830,
. The court notes that truth is an affirmative defense to a defamation claim. Bobb v. Kray-bill,
. Diodato abandoned both his claim that the TSA is overly broad—in scope or duration— and his consideration argument by failing to raise either in opposition to Wells Fargo’s motion. Nissan World, LLC,
. Diodato states: "The summary judgment standard requires a far more exacting level of evidence to justify the exercise of a restrictive covenant. Here, with a restrictive covenant born out of fraud, used to protect interests that are not lawfully capable of protection, [Wells Fargo] has failed to sustain the standard of evidence necessary to support summary judgment." (Doc. 74 at 37-38 (emphasis added)). This statement misapprehends the burden of proof, which lies with Diodato as the party seeking to prove the covenant's unreasonableness. Quaker Chem. Corp.,
. Diodato initially asserted claims for both false advertising and false designation of origin in violation of the Lanham Act. (See Doc. 1-2 ¶ 193 ("[The] ... Lanham Act violations are for the false designation of origin ____ and/or was a false or misleading description or representation of fact....”)). In its opening brief, Wells Fargo challenges only Dioda-to's false designation of origin claim, (Doc. 64 at 32—43), under the mistaken assumption that Diodato had not stated a claim for false advertising, (see Doc. 79 at 22). Diodato responds that his "primary claim under the Lanham Act” is a false advertising claim, and he pursues only that claim in his opposition papers. (See Doc. 74 at 39; id. at 42 (noting Wells Fargo "erroneously analyzed” a false designation claim in its opening brief rather than Diodato’s claim for false advertising)). Given Diodato's failure to respond to Wells Fargo’s false designation challenges, the court deems that claim to be abandoned and addresses only Diodato's false advertising claim. See Nissan World, LLC,
. Commercial value inquiries are typically fact-intensive and ill-suited for summary judgment. See Tillery v. Leonard & Sciolla, LLP,
. The information outlined in Wells Fargo’s pleading ostensibly falls within the ambit of the statutory definition of "trade secret.” However, absent supporting evidence, the court cannot determine as a matter of law whether information allegedly misappropriated constitutes a trade secret for the purpose of statutory liability. Cf. NOVA Chems., Inc. v. Sekisui Plastics Co.,
. In its effort to demonstrate a genuine issue of material fact, Wells Fargo incorporates the solicitation arguments raised earlier in its brief and alleges that Diodato used information about his former clients needs, policy renewal dates, policy expiration dates, and "much, much more,” after his termination. (Doc. 75 at 12-13). Despite its eonclusory assertions, Wells Fargo again offers no evidence specifically identifying the trade secrets at issue or the manner in which Diodato misappropriated them.
. Finally, to the extent Wells Fargo bases its unfair competition and conversion claims on the alleged misappropriation of trade secrets, those claims fail for the same reasons as Wells Fargo's PUTSA claim.
