Fine v. Communication Trends Inc.

Communications Trends, Inc. “CTI” filed this lawsuit against its former employee, Lynette Fine, alleging claims for breach of a non-solicitation covenant, breach of a non-disclosure covenant, violation of the Georgia Trade Secrets Act, and breach of a duty of loyalty. CTI also sued Fine’s current employer, Allscope Media, alleging claims for tortious interference with its business and contractual relationship with Fine. Fine and Allscope denied CTI’s allegations and filed a counterclaim alleging claims for defamation, libel and slander per se.1 The parties filed cross-motions for summary judgment. The trial court granted both motions.2 In these consolidated appeals, the parties challenge the trial court’s summary judgment decisions. In Case No. A10A0408, we affirm the entry of summary judgment in favor of CTI as to the counterclaim. In Case No. A10A0409, we affirm the entry of summary judgment in favor of Fine and Allscope as to CTI’s claims for breach of the restrictive covenants and tortious interference.3 However, we reverse the grant of summary judgment as to CTI’s claim against Fine for breach of a duty of loyalty. “Summary judgment is proper when there is no genuine issue of material fact and the movant is entitled to judgment as a matter of law. OCGA § 9-11-56 c.” Citation omitted. Palombi v. Frito-Lay , 241 Ga. App. 154 526 SE2d 375 1999. On appeal from a grant of summary judgment, a de novo standard of review applies and we view the evidence, and all reasonable conclusions and inferences drawn from it, in the light most favorable to the nonmovant. See id.

So viewed, the evidence shows that CTI is a business engaged in media planning, purchasing, and cable network programming. CTI’s major clients include several well-known cable television networks. In 1995, CTI hired Fine to serve as its media planner. Fine was subsequently promoted and became a corporate vice president at CTI. Fine was the main contact for CTI’s major clients, which allowed her to develop relationships with them. In the performance of her duties, Fine also had access to CTI’s client lists, client profiles, and media rates. In 1997, Fine executed a “Nondisclosure and Nonsolicitation Agreement” collectively “the restrictive covenants”, which restricted her from disclosing any of CTI’s confidential information and trade secrets, and from soliciting any of CTI’s clients on behalf of a third party, throughout her employment and for a period of two years following the cessation of her employment.