Zimmer-Hatfield, Inc. v. Wolf
Decision Date | 18 February 1994 |
Docket Number | Civ. A. No. 6:93-0537. |
Citation | 843 F. Supp. 1089 |
Court | U.S. District Court — Southern District of West Virginia |
Parties | ZIMMER-HATFIELD, INC., Plaintiff, v. Brian WOLF, et al., Defendants. |
Bryan R. Cokeley, Steptoe & Johnson, Charleston, WV, for plaintiff.
John J. Cowan, Charleston, WV, for defendant Wolf.
Lonnie C. Simmons and P. Rodney Jackson, DiTrapano & Jackson, Charleston, WV, for defendants Howmedica France & Kevin France.
Pending before the Court is the Defendant's motion for summary judgment. The Plaintiff brought this action seeking injunctive and monetary relief for the alleged violation of a restrictive covenant not to compete on the part of the Defendant, a former employee. The Defendant asserts two basic reasons in support of his motion: (1) the Court lacks jurisdiction over this case because the amount in controversy is less than $50,000.00 pursuant to 28 U.S.C. § 1332(a); and (2) the restrictive covenant is unreasonable and overbroad.
The Defendant asserts the record shows the amount in controversy is less than $50,000.00, thus precluding the jurisdiction of this Court pursuant to 28 U.S.C. § 1332(a). The leading case from the Fourth Circuit Court of Appeals discussing the determination of the amount in controversy is McDonald v. Patton, 240 F.2d 424, 425-26 (4th Cir.1957), which opines:
See Wiggins v. North American Equitable Life Ins. Co., 644 F.2d 1014, 1016-17 (4th Cir.1981); Cale v. City of Covington, 586 F.2d 311, 312-13 (4th Cir.1978); Broglie v. MacKay-Smith, 541 F.2d 453, 455 (4th Cir. 1976); Deering Milliken Research Corporation v. Textured Fibres, Inc., 415 F.2d 875, 877 (4th Cir.1969); Gauldin v. Virginia Winn-Dixie, Inc., 370 F.2d 167, 170 (4th Cir.1966); Texas Eastern Transmission Corp. v. Giannaris, 818 F.Supp. 755, 758 (M.D.Pa.1993); Arias v. Solis, 754 F.Supp. 290, 292-93 (E.D.N.Y.1991); Steele v. Morris, 608 F.Supp. 274, 276 (S.D.W.Va.1985) (Haden, C.J.); Patrick v. Sharon Steel Corp., 549 F.Supp. 1259, 1261-62 (N.D. W.Va.1982) (Haden, C.J.); Cf. In re A.H. Robins Co., 880 F.2d 709, 723-24 (4th Cir.1989) ( ). See generally 1 Moore's Federal Practice ¶ 0.921-3.-1. It should also be noted that the damages claimed must be more than merely "symbolic," because, "a claim not measurable in `dollars and cents' fails to meet the jurisdictional test of amount in controversy." McGaw v. Farrow, 472 F.2d 952, 953 (4th Cir.1973).
In cases where the original jurisdiction of a federal court is invoked, the burden of proof is on the plaintiff to show, "by a preponderance of the evidence, that it is not clear to a legal certainty that she will not recover less than the jurisdictional requirement; stated affirmatively, the plaintiff generally is required to show that it is probable that she would recover at least the jurisdictional amount." (emphasis in original). 1 Moore's Federal Practice ¶ 0.923.-1 at 844-45. See McNutt v. General Motors Acceptance Corp., 298 U.S. 178, 189, 56 S.Ct. 780, 785, 80 L.Ed. 1135, 1144 (1939). Furthermore, it should be noted that the burden imposed on the plaintiff is not a heavy one: Zacharia v. Harbor Island Spa, Inc., 684 F.2d 199, 202 (2d Cir.1982).
Defendant points to the deposition testimony of Norman Hatfield, owner of the Plaintiff company. Mr. Hatfield testified that he had yet to discern any losses to Zimmer from the Defendant's new employment. He testified there was nothing to indicate that the Defendant had done anything to the detriment of Zimmer, beyond leaving.
Plaintiff suggests that the appropriate standard for determining the amount in controversy in actions involving a covenant not to compete is not simply the amount of "lost sales" incurred, but also "the profits generated by the employee (and therefore the potential loss to be incurred by the employer)."1 This view finds support in USAchem, Inc. v. Goldstein, 512 F.2d 163, 170 (2d Cir.1975) where it was held, inter alia, that the amount of "sales volumes involved," may give rise to "the expectation that damages could exceed the jurisdictional amount." See Hulsenbusch v. Davidson Rubber Co., 344 F.2d 730, 733-34 (8th Cir.1965) ( ); American Eutectic Welding Alloys Sales Co. v. Garcia-Rodriguez, 353 F.Supp. 850, 853 (D.P.R.1973); Zep Manufacturing Corp. v. Haber, 202 F.Supp. 847 (D.C.Tex.1962) ( ). Cf. Glenwood Light & Water Co. v. Mutual Light, Heat & Power Co., 239 U.S. 121, 125, 36 S.Ct. 30, 31-32, 60 L.Ed. 174 (1915) ( ). Other courts have reached similar conclusions based upon the premise that, "the value to the plaintiff of the rights he is seeking to protect is the measure of jurisdiction in equity cases, even though the value of that right may not be capable of exact valuation in money." Premier Indus. Corp. v. Texas Indus. Fastener Co., 450 F.2d 444, 446 (5th Cir.1971). See Basicomputer Corp. v. Scott, 973 F.2d 507, 510 (6th Cir.1992) ; Robert Half Int'l v. Van Steenis, 784 F.Supp. 1263, 1265 (E.D.Mich.1991).2
Plaintiff submits the affidavit of Norman Hatfield asserting that the Defendant earned in excess of $50,000.00 for the Plaintiff in 1992. The loss of those profits due to the...
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