ADAMS, Judge.
Appellant Gordon Document Products, Inc. (GDP) brought suit against Service Technologies, Inc. (STI), Jeffrey Layne, Rufus Mosley and Floyd Carr, Jr., d/b/a Service Technologies (hereinafter collectively referred to as defendants) asserting claims for tortious interference, breach of fiduciary duty, breach of employment agreements, defamation, libel and slander per se. The trial court granted summary judgment to defendants on all of GDP's claims, and GDP appeals.
GDP and STI are competitors engaged in the business of marketing, installing and servicing business machines and related supplies, equipment and merchandise. Layne and Mosley are former GDP employees who left GDP and began working for STI on March 17, 2008, several days after they resigned from GDP. While they were employed at GDP, both Mosley and Layne executed employment agreements which contained noncompete restrictive covenants, and the alleged violation of these covenants is the basis of Count 2 of GDP's complaint.
1. We will first address GDP's fifth enumeration of error, which challenges the grant of summary judgment on its claims for breach of employment agreements.
(a) Mosley Agreement. Mosley began working at GDP as a sales representative in August 2003; during his employment with GDP he executed a sales representative employment agreement which contained a noncompete restrictive covenant. Section (5)(c) of the agreement provides in relevant part that
"Territory" is defined in the agreement as "the geographical area served by the Company, such area consisting of the following Map(s) and/or Descriptions(s) in the state of Georgia: See Exhibit 'A', pages 1 and 2 attached." A map of Georgia with 31 counties highlighted is attached as Exhibit A to the agreement; there is no page 2 to Exhibit A. Further, the agreement defines "Products" as
(b) Layne Agreement. Layne began working for GDP as a "color" specialist or manager, assisting sales representatives with color sales, in August 2004.
GDP produced documents labeled GDP sales list in response to defendants' discovery requests to identify the areas where Layne and Mosley were involved in sales on behalf of GDP. The trial court concluded from this evidence
Because the covenants in this case arise out of employment agreements, they are subject to strict scrutiny. Dent Wizard Intl. Corp. v. Brown, 272 Ga.App. 553, 555(1), 612 S.E.2d 873 (2005).
Id. at 555-556(1), 612 S.E.2d 873. Coleman v. Retina Consultants, 286 Ga. 317, 320(1), 687 S.E.2d 457 (2009).
Turning to the territorial restrictions at issue here, it appears that these two employees participated in sales activities
As we have previously explained:
Dent Wizard Intl. Corp. v. Brown, 272 Ga. App. at 556(1), 612 S.E.2d 873. E.g., W.R. Grace, etc. v. Mouyal, 262 Ga. 464, 466, 422 S.E.2d 529 (1992); Rollins Protective Svcs. Co. v. Palermo, 249 Ga. 138, 139(1), 287 S.E.2d 546 (1982).
In this case, GDP has offered no specific business justification for including these other counties, other than the assertion that the employees "were responsible for undertaking efforts to sell the products listed in these territories," and pointing to the fact that they were responsible for "cold calling" or otherwise developing business from potential customers in the area where GDP did business. First, we note that GDP does not assert that the two employees actually "undertook efforts" to sell products in these
2. Turning now to GDP's first and second enumerations of error, GDP contends that the trial court erred in granting summary judgment to Layne and STI on GDP's claims for tortious interference with employee relations and tortious interference with business relations.
(Citation omitted.) Kirkland v. Tamplin, 285 Ga.App. 241, 243(1), 645 S.E.2d 653 (2007). Sommers Co. v. Moore, 275 Ga.App. 604, 605, 621 S.E.2d 789 (2005).
In this context, "improper conduct means wrongful action that generally involves predatory tactics such as physical violence, fraud or misrepresentation, defamation, use of confidential information, abusive civil suits, and unwarranted criminal prosecutions." (Punctuation omitted.) Disaster Svcs. v. ERC Partnership, 228 Ga.App. 739, 741-742, 492 S.E.2d 526 (1997). American Bldgs. Co. v. Pascoe Bldg. Systems, 260 Ga. 346, 348-349(2), 392 S.E.2d 860 (1990); Kirkland, 285 Ga.App. at 244(1), 645 S.E.2d 653; Sommers, 275 Ga.App. at 606, 621 S.E.2d 789;
GDP contends the trial court erred in granting summary judgment on these claims because the evidence showed that Layne and STI tortiously procured the defection of former GDP employees Mosley, William Griswell, and Kelly Edge and tried to drive GDP out of business. Although GDP did not point to any specific evidence in its initial brief on appeal, referring generally to its statement of material facts, it appears to rely primarily on the following incidents and facts to support this claim: an after work meeting that several GDP employees attended in November or December 2007, a "tour" of STI which several GDP employees attended in early March 2008 and the testimony of two GDP employees concerning Layne's alleged solicitation of employees.
As is pertinent to these claims, the record shows the following: In November or December 2007, a group of GDP employees went to a bar after work. Craig Rizk, a former GDP employee who is not a party to this litigation, testified in his deposition that he asked Layne and others to attend and that Layne, Andrew Daly, Kelly Edge, Marty Calkins, Jeremy Chick and one or two others attended. Rizk prepared a document with "bullet" points for conversation about dissatisfaction with the company, and it was disseminated at the meeting. The general tone of the meeting was dissatisfaction with the company and a possible walkout if demands were not met, but nothing came of that "plan."
Several months after the meeting, in late January 2008, Layne first contacted STI by calling its president Lee Carr, for whom he had previously worked. Over the course of the next six or seven weeks, Layne and Carr exchanged phone calls and e-mails and met at either STI or public venues to discuss, among other things, Layne's potential employment with STI.
Layne testified that "right before" he made his decision to leave GDP he told Chick, Daly, Mosley and Edge that he was leaving because he "just . . . couldn't . . . do this anymore." Layne testified that these four were also his friends and that he believed they had probably begun looking for other employment even before he did.
The evidence also showed that Mosley, Chick and Daly made a tour of the facilities at STI in early March 2008, and GDP presented evidence that Layne made remarks encouraging the others to come to work there. Mosley, who was the only GDP employee on the tour who subsequently came to work at STI, testified that at that point "everybody" in the office was looking for a job and he was looking for an opportunity to leave GDP, a decision he had made months before following several incidents in which he felt he had been treated unfairly.
In addition to Mosley, Edge also left GDP and started working at STI. Edge testified that he visited STI with Daly while they were out at lunch one day, but that he was not part of the "group" tour. Edge testified that he did not find out where Layne was going until right around his departure from GDP and that he had not heard of STI before then. He further testified that Layne explained to him the differences between how GDP and STI operated, but that Layne did not tell him he wanted him to come to work at STI, although he knew he was the type of sales representative that Layne would want to employ.
In June 2008, Bill Griswell, a long-time service technician at GDP, left GDP and went to work at STI. Both Layne and Griswell testified that Griswell contacted Layne at STI on his own initiative after he had a conversation with some former GDP technicians who worked for another company, not STI. Griswell further testified that although he had worked for GDP for many years and had a good relationship with GDP's president, John Gordon, he decided to look elsewhere after he was told in a performance review conducted in the summer of 2007 that he had gone as far as he could go as a technician with the company, and should consider going into IT. But GDP did not offer him any training for that position and by the end of the year he was considering looking elsewhere. He further testified that he never told Layne he was dissatisfied at GDP or that he wanted to change jobs before Layne left GDP and that Layne never mentioned to him that he should come to work at STI. Griswell testified that although Layne told him he was going to work at STI before he left, he could not remember Layne telling him why or that he was upset at the way things were at GDP or with Gordon. He also testified that he toured STI before he went to work there, but it was with one of the people he was interviewing with, not Layne. Mosley, Edge and Griswell all testified that their compensation at STI was either comparable or less than what they received at GDP.
Lastly, although several employees of GDP testified that they thought employees left GDP and went to STI because Layne solicited them by making disparaging statements about GDP and Gordon, the portions of their statements that were based on hearsay or were speculative were struck by the trial court, and GDP has not challenged that ruling. Moreover, the meeting in late 2007 cannot form the basis for GDP's claims since that meeting occurred before Layne contacted Carr at STI about coming to work there. And, as to the March tour of STI, the only employee who attended the tour of STI who came to work there was Mosley, and he testified that he had made up his mind to leave GDP months before that and was just looking for the right opportunity. Moreover, Griswell contacted STI because of former employees of GDP who did not work at STI and not because of anything Layne said or did, and Edge also initiated the contact with Layne and STI and had made up his mind to seek other opportunities prior to Layne leaving GDP. To summarize, it appears that there was prevalent employee dissatisfaction at GDP and that Layne reaching out and procuring employment with this former boss
3. Because it is somewhat related to the above, we next address GDP's sixth enumeration of error. Citing Carroll Anesthesia Assoc. v. Anesthecare, 234 Ga.App. 646, 647-648, 507 S.E.2d 829 (1998), GDP makes the unparticularized argument that the trial court erred by granting summary judgment on its "claims for tortious interference with employment contracts and business relations as they related to customers and employees and defined product sales in the defined territories" because the evidence shows STI knew about and had reviewed GDP's employment agreements, and that the facts, which it did not specify, demonstrated that there remained issues of fact for jury resolution on the essential elements of those claims. First, unlike Carroll Anesthesia Assoc., as we held in Division 1, this case does not involve enforceable employment agreements. Moreover, as STI points out, mere knowledge that an employee has a noncompete agreement is insufficient to create a claim for tortious interference as there must also be evidence to show that STI acted maliciously to induce the breach. Williams v. Rio Grande Fence Co., 221 Ga. 633, 635(2), 146 S.E.2d 630 (1966).
Moreover, to the extent that GDP is asserting a claim for wrongful interference with customer relations, the evidence shows only that three former GDP customers brought products from STI after Layne started working there. GDP did not present any evidence from these customers concerning these purchases and did not present any evidence concerning the circumstances surrounding these sales. See Pendley Quality Trailer Supply v. B & F Plastics, 260 Ga.App. 125, 126-127, 578 S.E.2d 915 (2003) (directed verdict proper when company did not offer testimony from customers as to why they left the company). Moreover, Layne testified that Carr instructed STI employees not to make sales calls or sales attempts to GDP customers "from day one" after he started working there, and Griswell testified that he had not performed any service calls on GDP customers since he left the company. This enumeration thus also presents no basis for reversal.
4. GDP argues that the trial court erred in granting summary judgment on its claim against Layne for breach of fiduciary duty. Again we find no error.
Atlanta Market Center Mgmt. Co. v. McLane, 269 Ga. 604, 606(1), 503 S.E.2d 278 (1998).
Although it is undisputed that Layne was not a GDP principal, officer or director and for that reason many of the cases GDP relies
Section 2 (c) of Layne's employment agreement provided specifically that "Employee will not, without the specific written direction of the Company, have authority to bind the Company for any debt or obligation and will not, through any words or actions, indicate otherwise to any person, firm, or corporation." But despite this clear and unequivocal language, GDP urges that Layne did in fact have the authority to enter into contracts with its customers, and that, therefore, the trial court erred by finding that no question of fact existed as to his authority to bind the company. GDP also argues that the trial court erred by refusing to consider parol evidence, i.e., Gordon's testimony, that this provision was intended to simply limit Layne's ability to bind GDP to obligations other than customer contracts and employee relations, such as binding GDP to debts and loans from banks. But this provision was clear and unambiguous and its terms cannot be varied by parol evidence. OCGA § 24-6-1. "(W)here the terms of the contract are clear and unambiguous, the court looks only to the contract to find the parties' intent." (Citation and punctuation omitted.) In re Estate of Belcher, 299 Ga.App. 432, 435(1)(a), 682 S.E.2d 581 (2009).
Moreover, even assuming that Layne had the authority to bind GDP with respect to customer contracts, the breach of fiduciary duty alleged here concerned Layne's alleged solicitation of his co-workers at GDP, and there is no evidence he had the authority to bind the company on employment matters or relations. Thus, although Layne may have owed GDP a fiduciary duty with respect to the customer contracts he entered into on its behalf, there is no evidence he occupied a similar confidential relationship with respect to employee relations. See Atlanta Market, 269 Ga. at 607(1)(b), 503 S.E.2d 278 (Although "[t]he employee-employer relationship is not one from which the law will necessarily imply fiduciary obligations . . . the facts . . . may establish the existence of a confidential relationship . . . concerning a particular transaction, . . ." (emphasis supplied).
Based on the foregoing, the trial court did not err in granting summary judgment to Layne on this claim.
5. In light of our holding in Division 4 above, the trial court's grant of summary judgment to STI on GDP's claim that STI aided and abetted Layne's breach of fiduciary duty is also affirmed.
6. Lastly, GDP contends that the trial court erred in granting summary judgment to Layne on GDP's claims for defamation, libel and slander per se.
GDP points to three statements that it contends Layne published to GDP employees and others to support this claim: that GDP lied to its customers; that GDP was looking for a buyer; and that GDP was beefing up its books to make a sale go through. GDP further contends that because these statements concerned GDP's business, they constitute defamation per se and thus damages are inferred. OCGA § 51-5-4(a)(3).
Bellemead, LLC v. Stoker, 280 Ga. 635, 637-638, 631 S.E.2d 693 (2006). Zarach v. Atlanta Claims Assn., 231 Ga.App. 685(2), 500 S.E.2d 1 (1998).
As to the first statement, the record shows that during their negotiations, Layne told Carr that he could not keep his promises to GDP customers and that he later wrote in an e-mail to Carr that "I don't want to lie to my cust[omers] anymore." But Layne never stated that GDP or Gordon lied to customers, or directed him to lie to customers, only that he could not keep his promises to his customers. As the trial court noted these statements were not defamatory or libelous per se.
As to the other two statements, Jeremy Chick testified in his deposition that Layne told him that Gordon was trying to sell the company and that "they were trying to beef up the company, so that they could make the books look good to sell it." But a statement that a company is looking for a buyer and that it is trying to make itself more attractive to potential buyers is not, in and of itself, damaging or derogatory.
As the trial court correctly concluded, in the absence of evidence of statements or writings that were defamatory per se, GDP was required to demonstrate its entitlement to special damages. There was no evidence of special damages in this case; therefore, summary judgment was properly granted to Layne on this count as well.
Judgment affirmed.
SMITH, P.J., and MIKELL, J., concur.