A judge's ruling upheld an agreement preventing a former executive from working at a competing company, a decision that could have statewide implications.
Lackawanna County Judge Vito P. Geroulo granted a petition Friday for injunctive relief, which will prevent William B. Jozefowicz from working for Weber Logistics Inc. or any other competitor of Kane Warehousing Inc., which has offices in Scranton, Chicago, Los Angeles, Kansas City and Atlanta.
Mr. Jozefowicz was the vice president of customer operations at Kane's Scranton office until August, when his position was eliminated, according to court papers. When he was terminated, Mr. Jozefowicz signed a separation agreement that included non-competition and nonsolicitation restrictions, preventing him from working at a competing company or contacting clients of Kane in his new role.
Information Mr. Jozefowicz learned while working at Kane could be used to undercut the business, Kane stated in the court papers.
"It's a company's way of basically protecting their assets," explained Mary Walsh Dempsey, lead counsel for Kane.
Mr. Jozefowicz received six months of health care and compensation, a lump sum that totaled $82,500, according to court papers.
But several weeks later, Mr. Jozefowicz began working for Weber. Mr. Jozefowicz argued that Weber was not a competitor of Kane, but Judge Geroulo granted the injunctive relief preventing him from working for Weber or any other competing company for one year from his termination, the same length of time the original separation agreement stipulated.
"That's a full remedy for us," Mrs. Walsh Dempsey said. "That's exactly what we were seeking to enforce."
Separation contracts, like the one Mr. Jozefowicz signed, are common with executives, she explained, but have been difficult to enforce, especially in Pennsylvania.
"It's a step forward in the state," she added. "There have been some gray areas. This decision by Judge Geroulo is saying, 'Hey, they're going to be enforced.' They're credible agreements."
Attorney George Reihner, who represented Mr. Jozefowicz, had not yet read the decision when reached by phone Saturday.
"I obviously need to speak with my client," he said of the opinion. "We'll address that issue, and an appeal is an extraordinarily likely event."
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