KRISTI K. DuBOSE, District Judge.
This matter is before the Court on Defendants' Motion for Summary Judgment (Doc. 29), brief and evidentiary materials in support (Doc. 30) Plaintiff's response, brief and evidentiary materials in support (Doc. 32), and Defendants' reply (Doc. 35). Upon consideration, and for the reasons set forth herein, Defendants' motion for summary judgment is due to be
On March 11, 2010, Plaintiff AK Steel Corporation ("AK") filed a complaint in the Court of Common Pleas of Butler County, Ohio, against Defendants Donald Earley ("Earley"), Dona Ashby ("Ashby"), and Jonathan Salisbury ("Salisbury") (collectively, "Defendants"), alleging claims for breach of contract, violation of Ohio's Uniform Trade Secrets Act, breach of duty of loyalty, and breach of common-law duties of non-disclosure. (Doc. 2). Defendants were served with the Complaint on March 24, 2011, and, on April 21, 2010, Defendants timely removed the case to the United States District Court for the Southern District of Ohio, with jurisdiction based on diversity pursuant to 28 U.S.C. § 1332. (Doc. 1). Defendants' answer was filed on April 28, 2010. (Doc. 3).
On August 3, 2010, the Southern District of Ohio, upon the motion of Defendants (Doc. 6), ordered that the case be transferred to this Court. (Doc. 12). On June 1, 2011, Defendants filed their Motion for Summary Judgment on all claims in this case. (Doc. 29). AK's response (Doc. 32) and Defendants' reply (Doc. 35) have been timely filed, and the motion is now ripe for consideration.
"The court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(a). Rule 56(c) governs procedures and provides as follows:
Fed.R.Civ.P. 56(c).
Defendants, as the parties seeking summary judgment, bear the initial responsibility of informing the district court of the basis for their motion, and identifying those portions of the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, which they believe demonstrate the absence of a genuine issue of material fact. Clark v. Coats & Clark, Inc., 929 F.2d 604, 608 (11th Cir.1991) (quoting Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986)). If the non-moving party fails to make a sufficient showing on an essential element of its case with respect to which it has the burden of proof, the moving party is entitled to summary judgment. Celotex, 477 U.S. at 323, 106 S.Ct. 2548. In reviewing whether the nonmoving party has met its burden, the court must stop short of weighing the evidence and making credibility determinations of the truth of the matter. Instead, the evidence of the non-movant is to be believed, and all justifiable inferences are to be drawn in its favor. Tipton v. Bergrohr GMBH-Siegen, 965 F.2d 994, 998-99 (11th Cir.1992) (internal citations and quotations omitted), cert. denied, 507 U.S. 911, 113 S.Ct. 1259, 122 L.Ed.2d 657 (1993). The mere existence of a factual dispute will not automatically necessitate denial; rather, only factual disputes that are material preclude entry of summary judgment. Lofton v. Sec'y of Dep't of Children & Family Servs., 358 F.3d 804, 809 (11th Cir.2004), cert. denied, 543 U.S. 1081, 125 S.Ct. 869, 160 L.Ed.2d 825 (2005).
Plaintiff AK Steel Corporation is organized under Delaware law and headquartered in Butler County, Ohio. (Doc. 1-1 at 2, ¶ 2). It operates seven production facilities in the United States, including one in Rockport, Indiana, known as Rockport Works. (Id. at 2-3, ¶¶ 2, 7). Defendants Donald Earley, Dona Ashby, and Jonathan Salisbury are all former Rockport Works employees who resigned and are now employed by ThyssenKrupp in Calvert, Alabama. (Docs. 6-1, 6-2, 6-3). Each Defendant resides in Alabama. (Id.).
Earley began working for AK on August 11, 1997 and was based out of Rockport Works during his entire AK employment tenure. (Doc. 6-1 at 1, ¶¶ 1-2). Earley gave notice of his resignation to AK in June 2009, and his last day was June 26, 2009, at which point he held the position of Senior Process Engineer for the Hot Dip Galvanizing Line. (Id. at 1-2, ¶ 3). On July 6, 2009, Earley began working for ThyssenKrupp in Alabama as Team Manager for the Hot Dip Galvanizing Line 3, transferring to the position of Quality Manager for the Hot Dip Galvanizing Line in January 2010. (Id. at 2, ¶ 4).
Ashby began working for AK in March 1999 as a temporary clerk, becoming a full-time employee on July 1, 1999. (Doc. 6-2 at 1, ¶ 1). She too was based out of Rockport Works during her entire AK employment tenure. (Id. at 1, ¶ 2). Ashby gave notice of her resignation to AK on October 9, 2009, and her last day was October 23, 2009, at which point she held the position of Quality/Safety Coordinator for south finishing, overseeing the quality and safety documents for the shipping, receiving, and galvanizing lines. (Id. at 1-2, ¶ 3). On November 2, 2009, she began working for ThyssenKrupp in Alabama as a Technical Specialist for the Cold Rolled Mill. (Id. at 2, ¶ 4).
Salisbury began working for AK on October 10, 1993, starting at its Middletown, Ohio, facility and transferring to Rockport Works in March 1998, where he worked
Early in their employment with AK, each Defendant agreed by signature to terms contained in a document entitled "Employee Invention and Confidential Information Agreement" ("Employee Agreement") (Doc. 1-1 at 4-6, 16, 18, 20). In pertinent part, each Employee Agreement contained the following provisions (hereinafter referred to as the "Nondisclosure Clause"):
(Doc. 1-1 at 16, 18, 20).
In addition, each Employee Agreement states that its "interpretation, application and effect ... shall be governed by the laws of the State of Ohio." (Id.).
Before resigning from AK, Earley and Ashby both participated in exit interviews with Tracy Jahn (then Tracy White), Rockport Works' manager of human resources. (Doc. 30-5 at 3-4; Doc. 30-7 at 7; Doc. 30-8 at 4). In Earley's exit interview, he and Jahn discussed his reasons for leaving AK and the details of his new job at ThyssenKrupp. (Doc. 30-5 at 5, 8; Doc. 30-7 at 7). Ashby does not recall Jahn asking her about why she was leaving. (Doc. 30-8 at 4). Jahn did ask her where she was going, the details of her new job, what she thought of the AK managers and the company in general, and if she could recommend someone else to work for AK. (Doc. 30-5 at 7; Doc. 30-8 at 4-5). Jahn does not recall discussing any confidentiality agreement with Earley or Ashby at their exit interviews. (Doc. 30-5 at 12). Salisbury did not participate in an exit interview with Jahn before resigning from AK. (Doc. 30-5 at 6; Doc. 30-9 at 4).
Before leaving AK, Earley sent emails from his AK account to a personal account. (Doc. 30-7 at 9-10). These emails contained vendor contact information, including names of specific contact individuals, and what Earley identifies as information about improvement projects in which he had made or suggested changes. (Doc. 32-3 at 5-7). Earley sent himself the vendor contact information in order to be able to contact those vendors in the future, even after leaving AK. (Id. at 5-6). The vendor information was aggregated into a list, which Earley took with him to ThyssenKrupp. (Id. at 6-7).
Eric Petersen ("Petersen"), AK's Director of Research and Customer Technical Services, has reviewed the information sent by Earley from his AK computer to his personal account shortly before Earley resigned from AK. (Doc. 32-4 at 2, ¶ 2). He classifies much of the information as "confidential and proprietary to AK Steel" and claims that it "would give a competitor the advantage of knowing what processes AK Steel has put in place to maintain its high quality achievements and what ways AK Steel has addressed various issues in the production process." (Id.). Some of the confidential information Petersen identifies as being sent by Earley are temporary work instructions which "contain highly detailed information about the solutions and improvements that AK Steel had developed to keep various problems from affecting the steel it produces." (Id., ¶ 3). Such information, Petersen claims, would save a competitor time and money. (Id.).
On May 24, 2009, after Earley had left to work at ThyssenKrupp, but before Salisbury resigned from AK, Salisbury emailed Earley a computer program used to convert English units to metric, at Earley's request. (Doc. 30-9 at 3; Doc. 32-6 at 4-5). The program is a free utility downloaded from the Internet which many AK employees keep on their computers. (Id.). Salisbury is unaware if AK made modifications to the program after downloading it. (Id.). Along with the conversion utility, Salisbury attached a file entitled "coil_calc.xls." (Doc. 35-7 at 32). Salisbury described the "coil_calc.xls" attachment as something he "whipped ... together as a going away present" for Earley, who had asked Salisbury about it in the past, and wrote that "[i]t's not very polished but it works." (Id.). On July 9, 2009, Salisbury emailed Earley copies of his resume and cover letter for critiquing. (Doc. 30-9 at 7-12).
Salisbury periodically made backup copies of AK computer files, which typically remained on-site. (Doc. 32-6 at 5-7). However, shortly before leaving AK, Salisbury took home on a thumb drive backup copies of certain files that were stored on the computer he used while at AK. (Id. at 5). No one at AK was ever told Salisbury had taken copies of these files. (Id. at 8). Salisbury claims that he only accessed these files twice: once to retrieve an email address and once to access stored web browser favorites. (Id.).
While she was still with AK, Ashby also continued to correspond with Earley after he had left for ThyssenKrupp. On September 21, 2009, while carrying on a discussion with Earley as to what organization method for an instrument department was more efficient, Ashby emailed Earley the Gage Repeatability and Reproducibility History ("GRRH") of certain gauges at Rockport Works, which synopsized the accuracy
Ashby claims both that Earley requested the GRRH and IMT during their efficiency discussion and that she provided it to illustrate her viewpoint on the matter. (Doc. 30-8 at 10-11; Doc. 32-2 at 11). Earley claims he requested it as material for a presentation he was putting together at ThyssenKrupp. (Doc. 30-7 at 15). At the request of Dr. Bertram Ehrhardt, a researcher in ThyssenKrupp's quality assurance department, Earley was to frame a discussion about whether instrument calibration should be performed in-house or by an outside contractor. (Doc. 32-3 at 8, 12-15). Earley claims that the IMT he requested is generic information which can be obtained off then Internet if one "want[s] to spend the time to do it[,]" though Earley decided to ask Ashby for it and the GRRH to save time. (Id. at 9, 11, 15). Ashby provided him the information a day after he requested it. (Id. at 9). ThyssenKrupp did not specifically request that Earley obtain information from AK, nor was ThyssenKrupp ever shown the documents Ashby sent him. (Id. at 13, 15).
Petersen classifies the information in the GRRH and the IMT as containing "highly detailed specifications about processes that AK Steel has developed to maintain and improve the quality of its products." (Doc. 32-4 at 3, ¶ 4). The information in the GRRH was produced in-house by AK studies and was regularly provided to outside auditors from Steel Related Industries Quality System Registrar, Inc. ("SRI"). (Doc. 30-4 at 17, 20-21; Doc. 30-7 at 14-15; Doc. 30-8 at 8, 12-13; Doc. 32-2 at 9; Doc. 32-4 at 3, ¶ 7). With the IMT, customers would decide what critical measurements to use, and AK would then decide what instruments would be used to meet those specifications. (Doc. 32-2 at 5-6). More than one-third of the information on the IMT Ashby sent was developed internally at AK rather than having been taken from manufacturer guidelines. (Doc. 32-4 at 3, ¶ 5).
The devices listed on the GRRH and the IMT are available on the open market to any who wish to purchase them. (Doc. 30-4 at 18-19). Additionally, at least three times while he was working for AK and with the approval of one of his superiors at AK, Earley shared certain of this information with the American Iron and Steel Institute, a trade organization, though the information shared with the trade organization was not in list form and was more generic than what Ashby sent to Earley. (Doc. 30-7 at 12-13; Doc. 32-3 at 10-11). When asked why he did not try to obtain this information from the trade organization, Earley stated that he "could get more specific information on Drever Furnace" directly from Ashby. (Doc. 30-7 at 12). Petersen claims that while some of this information is shared with trade organizations, the information is limited to that which is publicly available or does not compromise AK's competitive advantage. (Doc. 32-4 at 3, ¶ 6). Additionally, while AK has at times provided SRI with sensitive or confidential information as part of quality audits to maintain certification under
When she left her employment with AK, Ashby took with her a binder of information, including "AK quality policies [and] corporate level stuff," which she had used at AK to help her prepare for audits. (Doc. 32-2 at 16-17). In her words, they were "kind of the rules you'd gone by to— when you do an audit." (Id. at 17). The binder had been packed with Ashby's personal items which she took from AK upon leaving. (Id.). After the commencement of this action, Ashby turned the binder back over to AK after being asked by a lawyer if she was in possession of anything from AK. (Id.). Before that, Ashby had kept the binder at her house but had never referenced it after leaving AK.(Id.).
Seeming to rely on the choice-of-law provisions in each of the Employee Agreements, the parties have applied Ohio law to all claims in their briefing. However, this action was removed to federal court on the basis of diversity jurisdiction, and it is well-settled that "a federal court in a diversity case is required to apply the laws, including principles of conflict of laws, of the state in which the federal court sits." Manuel v. Convergys Corp., 430 F.3d 1132, 1139 (11th Cir.2005) (citing Klaxon Co. v. Stentor Elec. Mfg. Co., 313 U.S. 487, 496, 61 S.Ct. 1020, 85 L.Ed. 1477 (1941)).
In Ohio, "[t]he essential elements of a cause of action for breach of contract are the existence of a contract, performance by the plaintiff, breach by the defendant and resulting damage to the plaintiff." Winner Bros. v. Seitz Elec., Inc., 182 Ohio App.3d 388, 912 N.E.2d 1180, 1187 (2009) (internal quotations omitted).
The Employee Agreements signed by Defendants are valid contracts. Though Defendants note that their superiors at AK were not familiar with or aware of the confidentiality provisions contained in their respective agreements, none of the Defendants has denied the authenticity of the signatures thereon. Nor has any Defendant alleged that he or she was misled or unduly coerced into signing his or her agreement.
AK has performed under the Employee Agreements, each of which states that the signatory agrees to be bound by its obligations "in accepting or continuing employment" with AK.
AK has presented little evidence that would show how, if proven, Defendants' breaches of their Employee Agreements have damaged it. AK all but concedes its inability to prove damages, arguing instead that this case should proceed to trial by virtue of its prayer for injunctive relief. Though the Supreme Court of Ohio has held that "in a case where a plaintiff proves breach of contract at trial but fails to prove actual damages resulting from that breach, the trial court may enter judgment for the plaintiff and award nominal damages," DeCastro v. Wellston City Sch. Dist. Bd. of Educ., 94 Ohio St.3d 197, 761 N.E.2d 612, 615 (2002) (emphasis added), that court has also noted that summary judgment may be granted to a defendant "where the plaintiff has failed to provide evidence of economic damages resulting from a breach of contract and has failed to seek injunctive relief or specific performance of a contractual duty." Id. at 617. Here, AK has sought injunctive relief to, among other things, enforce the Employee Agreements. (Doc. 1-1 at 10, 12). Therefore, as to AK's breach of contract claim, failure to prove actual damages may not be fatal, provided that AK has a viable claim to injunctive relief.
As to an alleged violation of the first variety, the critical determinations to be made are whether the information 1) was used or disclosed (and, if so, whether such use or disclosure was "authorized"); 2) was "of a secret or a confidential nature," 3) belonged to AK, and 4) was obtained "during the course of" a Defendant's employment with AK.
Earley does not dispute that, while employed by AK, he sent vendor contact information from an AK email account to one of his personal email accounts and made contact with those vendors when later employed by ThyssenKrupp. (Doc. 32-3 at 5-7). Granting every justifiable inference to AK, see Tipton, 965 F.2d 994, 998-99, it may be inferred that, in order to facilitate those contacts, Earley used the information he had sent to himself via email and, further, that such use was not authorized by AK. It is clear that Earley obtained the contact information during his employment with AK, but a genuine dispute exists as to whether the contact list was confidential and/or "belong[ed]" to AK.
Earley admits that, before resigning from AK, he emailed himself information regarding improvement projects that he then used information to prepare a report for the General Manager at Rockport Works. (Doc. 30-7 at 9-10). There is no question that Earley obtained the information during his employment with AK, but AK has not made a sufficient showing that Earley's use of that information for the purpose of creating a report for one of his superiors at AK, while he was still an AK employee, was unauthorized. More significantly, AK also has not shown that Earley used this information at any point after his employment with AK. Accordingly, there is insufficient evidence to sustain AK's claim that Earley's use of the improvement project information breached the Employee Agreement.
AK has sufficiently shown that the IMT and GRRH lists that Ashby sent to
As to the GRRH, AK Steel chemist Stephen Peterangelo testified that that information in GRRHs are "unique" and reveal AK's "technical capabilities of analytical chemistry." (Doc. 32-8 at 3-4, pp. 78, 80-81). Ashby testified that the GRRH that she sent to Earley was a "synopsis" of studies conducted by AK personnel on AK instruments. (Doc. 32-8 at 8-9). Seeking to show that the GRRH was not treated by AK as having a secret or confidential nature, Defendants misplace heavy emphasis on the fact that AK shared the GRRH with its outside auditors. But such disclosures were made pursuant to a confidentiality agreement between AK and its auditor, underscoring AK's efforts to avoid public dissemination of the GRRH. (Doc. 32-4 at 3, ¶ 7).
Though a factual dispute exists as to whether Ashby's disclosure of the IMT and GRRH breached her Employee Agreement, the express terms of AK's agreement with Earley incontestably foreclose his liability (pursuant to the contract) for soliciting or receiving those materials. Earley's contract restricts the disclosure and use of information obtained during the course of his employment with AK. (Doc. 1-1 at 16.) It is undisputed that Earley obtained the IMT and GRRH after he had resigned from AK. At trial, AK may seek to prove that Ashby breached her Employee Agreement by sending the IMT and GRRH to Earley but not that Earley breached his Employee Agreement by receiving the same from Ashby.
AK alleges Salisbury disclosed two pieces of information in violation of his Employee Agreement. The first is a conversion utility that had been downloaded from the Internet that Salisbury testified was "a generic piece of free software" that "pretty much everyone at AK had on their desktop." (Doc. 30-9 at 3; Doc. 32-6 at 4). Because the conversion utility was neither confidential nor secret, and because the utility did not "belong" to AK, Salisbury's transmission of it to Earley did not breach Salisbury's Employee Agreement. The second piece is an Excel file entitled "coil_calc.xls" that functioned as a "conversion calculator." (Doc. 35-7 at 11-12.) Unlike the IMT and GRRH sent by Ashby, the conversion calculator did not contain any data specific to AK processes. (Id. at 32-34). Furthermore, AK has not made any showing that the Excel file was regarded as having a secret or confidential nature. Accordingly, AK has not demonstrated that a dispute exists as to whether Salisbury used or disclosed any information in violation of his Employee Agreement.
The only two pieces of non-public information that AK claims were improperly retained in violation of its Employee Agreements with the Defendants are 1) the binder of "AK quality policies [and]
Though Ashby and Salisbury breached their Employee Agreements by not promptly returning certain documents and files, AK again failed to show any resultant damages. Injunctive relief is moot—and a cause of action for breach of contract based on improper retention cannot lie— absent proof that Ashby and/or Salisbury still have possession or control of non-public AK information. See DeCastro, 761 N.E.2d at 617.
AK has not challenged Ashby and Salisbury's testimony that they no longer have any AK materials that they once possessed. See Doc. 35-2 at 7 (after commencement of this action, Ashby returned the binder to AK); Doc. 35-3 at 6 (Salisbury gave all thumb drives to his attorneys). Accordingly, injunctive relief is unavailable to AK, and the only two possible avenues to success on AK's breach of contract claim are to prove either unauthorized use of confidential contact information by Earley or unauthorized disclosure of the IMT and GRRH by Ashby. Defendant Salisbury's motion for summary judgment on the breach of contract claim will be granted.
Under Ohio's Uniform Trade Secrets Act ("OUTSA"), "a complainant in a civil action is entitled to recover damages for misappropriation." Ohio Rev.Code Ann. § 1333.63(A) (West 2004). OUTSA defines "misappropriation" as:
Id. at § 1333.61(B). The Act further defines "trade secret" as information that satisfies both of the following:
Id. at § 1333.61(D). In the context of the statute, "improper means" includes "theft,
The Supreme Court of Ohio has adopted the following six factors in analyzing what constitutes a trade secret:
State ex rel. The Plain Dealer v. Ohio Dep't of Ins., 80 Ohio St.3d 513, 687 N.E.2d 661, 672 (1997). An entity claiming trade secret status bears the burden of identifying and demonstrating that the material at issue is included in the categories of protected information under the statute. Id. AK has not demonstrated that it can meet this burden as to any of the material at issue in this case.
According to his declaration, Petersen, AK's research director, reviewed the information that Earley sent to his personal email account before he resigned from AK. (Doc. 32-4 at 2, ¶ 2). Petersen declared "[m]uch" of the information to be "confidential and proprietary to AK Steel" and sufficient to "give a competitor the advantage of knowing what processes AK Steel has put in place to maintain its high quality achievements and what ways AK Steel has addressed various issues in the production process." (Id.). However, the only specific piece of information that Petersen identifies are certain temporary work instructions, which he claims "contain highly detailed information about the solutions and improvements that AK Steel has developed to keep various problems from affecting the steel it produces" and "would allow a competitor to benefit from the research AK Steel has done and from the process improvements that AK Steel has tested and refined, all of which would save the competitor much time and money." (Id., ¶ 3).
The Court must put aside Petersen's conclusory assertions. See State ex rel. Besser v. Ohio State Univ., 89 Ohio St.3d 396, 732 N.E.2d 373 (2000) (conclusory affidavits insufficient to meet the burden of establishing trade secret status). But without them AK has failed to show that either the vendor contact information or temporary work instructions is a trade secret, was acquired by improper means, or was used or disclosed in violation of § 1333.61(B)(2).
In similar fashion to his assessment of the information discussed above, Petersen conclusorily claims that the information sent by Ashby to Earley—namely the IMT and GRRH—"contains highly detailed specifications about processes that AK Steel has developed to maintain and improve the quality of its products." (Doc. 32-4 at 3, ¶ 4). But AK has not presented sufficient evidence as to the value to AK of having this information as against competitors; the amount of effort or money expended in obtaining and developing the information; or the amount of time and expense it would take for others to acquire and duplicate the information—three of the six Plain Dealer factors. Instead, AK focuses its argument most strongly on the third of those factors, i.e., whether precautions
As discussed above, AK also has not shown that either the Internet-derived conversion tool or Excel-based conversion calculator that Salisbury sent to Earley was secret or non-public. As with the IMT and GRRH, AK has made no showing as to the independent economic value it derives from these tools, and, as with the IMT and GRRH, the Court finds that the materials that Salisbury disclosed to Earley were not trade secrets.
The Court finds that AK's statutory misappropriation claim fails as to each Defendant, as AK has not shown that any of the material taken from AK by the Defendants is a trade secret as defined by Ohio law. Defendants' motion for summary judgment will be granted as to Count 2.
Under Ohio common law, an employee has a duty to act in the utmost good faith and loyalty toward his or her employer. Orbit Elecs., Inc. v. Helm Instrument Co., 167 Ohio App.3d 301, 855 N.E.2d 91, 100 (2006) (citing Connelly v. Balkwill, 160 Ohio St. 430, 116 N.E.2d 701 (1954)). This duty binds an employee during the employee's period of employment but not thereafter. See Staffilino Chevrolet, Inc. v. Balk, 158 Ohio App.3d 1, 813 N.E.2d 940, 954 (2004) (former employee owed duty of loyalty to former employer "prior to quitting" (emphasis in original)); see also Veterinary Dermatology, Inc. v. Bruner, No. C-040648, 2005 WL 2679628, at *3 (Ohio Ct.App. Oct. 21, 2005) (to withstand summary judgment on breach of loyalty claim, plaintiff bore burden of showing that defendant competed with former employer "during her employment"); Cary Corp. v. Linder, No. 80589, 2002 WL 31667316, at *6 (Ohio Ct.App. Nov. 27, 2002) (duty of loyalty is breached when employee competes with his or her employer, but "`[p]reparing to compete' is not equivalent to `competing'").
Since AK cannot demonstrate that any of defendants actually competed with AK before resigning, a breach of the duty of loyalty cannot lie.
AK's duty of loyalty claim also fails for lack of evidence as to damages that resulted from any alleged breach. In its Complaint, AK alleges that Defendants are liable "for damages in an amount to be determined at trial, including the amount of salary paid to Defendants during the period of their disloyalty, as well as other monetary damages and damages that cannot be calculated, and irreparable harm to its reputation, goodwill, and business relations," (Doc. 1-1 at 11, ¶ 58), but the record is utterly bereft of any evidence as to AK's reputation, goodwill, business relations, or harm thereto. In demanding damages in the amount of Defendants' salaries, AK appears to invoke that "faithless servant doctrine," which was adopted by an Ohio appellate court in Roberto v. Brown County General Hospital, 59 Ohio App.3d 84, 571 N.E.2d 467 (1989). Essentially, that doctrine holds that, where an employee's disloyalty "permeates" his or her service, the employer can recoup all compensation paid to that employee during the period of the employee's faithlessness. Id. at 469. But even if AK had made a sufficient showing that Defendants were
In the absence of sufficient evidence of a breach by Defendants, any injury to AK, or the quantum of damages for which Defendants are allegedly liable, Defendants are entitled to summary judgment on Count 3 of the Complaint.
Count 4 of AK's Complaint alleges a breach of Defendants' "obligations under the common law not to disclose or use the confidential, sensitive, and proprietary information of AK Steel." (Doc. 1-1 at 12, ¶ 61). Though both parties appear to assume in their papers that a duty of nondisclosure exists at common law, neither party has cited a single Ohio case recognizing a cause of action for its breach. Furthermore, the Court's own research has not revealed any decision outlining the elements of such a cause of action.
In accordance with the foregoing, Defendant Salisbury's motion for summary judgment (Doc. 29) is
It is
Molinos Valle Del Cibao, C. por A. v. Lama, 633 F.3d 1330, 1348 (11th Cir.2011).