The Court, for the sake of completeness, considers Defendants' argument as if asserted under Ohio law. Under that law, “a non-compete clause's enforceability is a matter of law for the court.” Chi. Title Ins. Corp. v. Magnuson, 487 F.3d 985, 990 (6th Cir.2007). “[A] noncompete covenant is enforceable to the extent it is reasonable.”
The parties' competing motions and related briefing address the scope of what discovery this Court should permit upon remand from the Sixth Circuit. That appellate court previously affirmed in part, reversed in part, and remanded this litigation for a new trial on compensatory damages. Chicago Title Ins. Corp. v. Magnuson, 487 F.3d 985 (6th Cir. 2007). The parties are now arguing over the scope of that remand and what discovery is necessary to meet the court of appeals' directive.
See Romano v. U-Haul Int'l, 233 F.3d 655, 673 (1st Cir. 2000) (defendant's actions were reprehensible where it violated plaintiffs rights and then attempted to conceal the violation); Hopkins v. Dow Corning Corp., 33 F.3d 1116, 1127 (9th Cir. 1994) (punitive damages award was constitutionally permissible where defendant concealed studies relating to product defects); cf. Hawkins v. Allstate Ins. Co., 152 Ariz. 490, 497, 733 P.2d 1073, 1080 (1987) (in calculating "a punitive damage award that is reasonable under the circumstances," the trier-of-fact may consider the "duration of the misconduct, the degree of defendant's awareness of the harm or risk of harm, and any concealment"). ¶ 100 Security Title also argues First American has engaged in similar bad acts elsewhere, citing Chicago Title Insurance Corp. v. Magnuson, 487 F.3d 985 (6th Cir. 2007). In Chicago Title, as here, First American was sued for its conduct in seeking to staff its newly formed Talon division.
Even if the rule applies to district courts and appellate courts—a proposition far from certain, see LidoChem, Inc. v. Stoller Enters., 500 F. App'x 373, 388-91 (6th Cir. 2012) (Thapar, J., dissenting) (collecting cases)—the rule is quite clearly discretionary, and we decline to reverse the district court on this basis. See Chicago Title Ins. Corp. v. Magnuson, 487 F.3d 985, 995 (6th Cir. 2007) (quoting Street v. J.C. Bradford & Co., 886 F.2d 1472, 1479-80 (6th Cir. 1989)) ("A district court is not required to 'search the entire record to establish that it is bereft of a genuine issue of material fact.'"). The first piece of evidence offers little.
Lawyers's chain of causation is too attenuated and speculative to withstand summary judgment. Lawyers argues that we adopted the functional equivalent of its "excluded causation theory" in Chicago Title Insurance Corp. v. Magnuson, 487 F.3d 985 (6th Cir. 2007), where we affirmed a jury verdict against former Chicago Title executive James Magnuson who breached a non-compete provision by working for a competitor after leaving Chicago Title. Although Magnuson's employment agreement contained a non-compete provision, Lawyers questions the relevance of this distinction because even Bittinger was forbidden from competing with Lawyers during her employment and the solicitation of Frattaroli occurred while Bittinger was employed by Lawyers.
We apply a de novo standard of review when reviewing a district court's determination of the constitutionality of a punitive-damages award. Cooper Indus., Inc. v. Leatherman Tool Grp., Inc., 532 U.S. 424, 436, 121 S.Ct. 1678, 149 L.Ed.2d 674 (2001); see also Chicago Title Ins. Corp. v. Magnuson, 487 F.3d 985, 999 (6th Cir. 2007). Compensatory damages "are intended to redress the concrete loss that the plaintiff has suffered by reason of the defendant's wrongful conduct."
III. This court reviews de novo the district court's grant of summary judgment to DD, Helms v. Zubaty, 495 F.3d 252, 255 (6th Cir. 2007), as well as the district court's interpretation of the Lease, Chicago Title Ins. Corp. v. Magnuson, 487 F.3d 985, 990 (6th Cir. 2007). Where the parties have filed cross-motions for summary judgment, the court "must evaluate each motion on its own merit and draw inferences against the party whose motion is being considered."
The repeated conduct factor "'require[s] that the similar reprehensible conduct be committed against various different parties rather than repeated reprehensible acts within the single transaction with the plaintiff.'" Chicago Title Ins. Corp. v. Magnuson, 487 F.3d 985, 1000 (6th Cir.2007) (quoting Bach v. First Union Nat'l Bank, 149 Fed.Appx. 354, 356 (6th Cir.2005)). Here, Westbound argues that defendants' infringement involved repeated actions because defendants authorized the release of the Ready to Die album without confirming that all samples were legal and sampled "Singing in the Morning" on another track on the album.
The Sixth Circuit has explained that “Rule 56 places an affirmative duty on the nonmovant to cite to ‘particular parts of materials in the record' to establish that a particular fact cannot be supported or is genuinely disputed. Fed.R.Civ.P. 56(c)(1); see Chicago Title Ins. Corp. v. Magnuson, 487 F.3d 985, 995 (6th Cir.2007).” Emerson v. Novartis Pharm. Corp., 446 Fed.Appx. 733, 734 (6th Cir. 2011).
The employer bears the burden of proving the reasonableness of the restraint. Chicago Title Ins. Corp. v. Magnuson, 487 F.3d 985, 991 (6th Cir. 2007).