ARTIS & ASSOCIATES,
Plaintiff,
v
.
MARIE ANN AUDITORE,
Defendant.
Parker, Poe, Adams & Bernstein L.L.P., by Jack L. Cozort, for
plaintiff appellee.
Robinson, Bradshaw & Hinson, P.A., by David C. Wright, III,
and Joshua F. P. Long, for defendant appellant.
TIMMONS-GOODSON, Judge.
Marie Ann Auditore (defendant) appeals from an order of the
trial court granting a preliminary injunction in favor of
defendant's former employer, Artis and Associates (plaintiff).
For the reasons stated herein, we dismiss defendant's appeal.
The pertinent facts of the appeal are as follows: On 26 March
2001, plaintiff filed a complaint and motion for a preliminary
injunction against defendant in Mecklenburg County Superior Court.
The complaint alleged that defendant, a former employee of
plaintiff, had breached her employment contract with plaintiff. In
the employment contract at issue, defendant agreed to not perform
or engage in any 'Competing Activity' with plaintiff's business
for a period of one year following termination of the agreement. The complaint alleged that defendant breached this agreement by
accepting employment with one of plaintiff's competitors within the
one-year period following defendant's resignation from her position
with plaintiff on 15 December 2000. The complaint set forth claims
for breach of contract, tortious interference with contract,
misappropriation of trade secrets, unfair competition and
injunctive relief.
On 5 April 2001, plaintiff's motion for preliminary injunction
came before the trial court. Upon review of the pleadings,
affidavits, legal memoranda, and arguments by counsel, the trial
court granted plaintiff's motion for a preliminary injunction in
part and enjoined defendant from competing with plaintiff's
business or disclosing trade secrets as specified in the employment
agreement. Defendant promptly filed a notice of appeal of the
trial court's order with this Court on 13 June 2001. Defendant
also filed a motion to stay the trial court's order pending the
appeal, which motion the trial court denied. Defendant then filed
a petition for writ of supersedeas and motion for a temporary stay
of the injunction with this Court. In her petition for writ of
supersedeas, defendant noted that, unless a stay of the trial
court's injunction was granted, the expiration on 15 December 2001
of the non-compete clause contained in the employment contract at
issue would render the present appeal moot. This Court
nevertheless denied such petition and motion.
______________________________________________________
The dispositive issue before this Court is whether defendant'sappeal presents a live controversy or other compelling grounds for
review by this Court. Because we conclude that the issues raised
in defendant's appeal are moot, we dismiss the appeal.
It is well established that
[w]hen, pending an appeal to this Court, a
development occurs, by reason of which the
questions originally in controversy between
the parties are no longer at issue, the appeal
will be dismissed for the reason that this
Court will not entertain or proceed with a
cause merely to determine abstract
propositions of law or to determine which
party should rightly have won in the lower
court.
Parent-Teacher Assoc. v. Bd. of Education, 275 N.C. 675, 679, 170
S.E.2d 473, 476 (1969). Thus, where the restrictions imposed by a
preliminary injunction expire within the pendency of an appeal,
issues concerning the propriety of the injunctive relief granted
are rendered moot by the passage of time. See Rug Doctor, L.P. v.
Prate, 143 N.C. App. 343, 345, 545 S.E.2d 766, 768 (2001); Herff
Jones Co. v. Allegood, 35 N.C. App. 475, 479, 241 S.E.2d 700, 702
(1978). Where a preliminary injunction is denied or granted based
upon a covenant not to compete, our Supreme Court has warned that
where time is of the essence, the appellate process is not the
procedural mechanism best suited for resolving the dispute. The
parties would be better advised to seek a final determination on
the merits at the earliest possible time. A.E.P. Industries v.
McClure, 308 N.C. 393, 401, 302 S.E.2d 754, 759 (1983).
In Rug Doctor, the plaintiff-employer filed a complaint
against one of its former employees, alleging violation of the
terms of a non-compete agreement. The plaintiff also sought apreliminary injunction to enjoin the defendant-employee from
further violating the agreement, the terms of which prohibited the
defendant-employee from competing with the plaintiff-employer's
business for a period of one year following termination of the
employer-employee relationship. See Rug Doctor, 143 N.C. App. at
344, 545 S.E.2d at 767. The plaintiff argued that an injunction
was necessary to prevent irreparable harm to plaintiff's business
interests. The trial court denied the plaintiff's motion for an
injunction, concluding that the plaintiff had failed to carry its
burden as to either success on the merits or irreparable loss.
Id. at 345, 545 S.E.2d at 767. The plaintiff appealed the denial
of its motion to this Court.
On appeal, the Court held that, as of the filing of this
opinion, the twelve month prohibition imposed by the covenant has
expired, thus rendering the issues raised by the plaintiff-
appellant moot. Id. at 344, 545 S.E.2d at 767. The Court noted,
however, that [a]lthough [the plaintiff] is foreclosed from
injunctive relief, there remains the underlying cause of action in
which [it] can seek damages for harm caused by [the defendant's]
alleged breach provided, of course, [it is] successful on the
merits. Id. at 346, 545 S.E.2d at 768.
This Court dismissed a similar argument as presenting moot
issues in Herff Jones Co. v. Allegood, cited supra. In Herff Jones
Co., the plaintiff obtained a temporary restraining order against
the defendants on the basis of evidence that the defendants
violated their agreements with the plaintiff by entering intocompetition with plaintiff within one year following the
termination of the [employment] agreements. Herff Jones Co., 35
N.C. App. 476, 241 S.E.2d at 701. The defendants appealed to this
Court the issuance of the temporary restraining order and its
subsequent continuance, which were in effect a preliminary
injunction. Id. at 478, 241 S.E.2d at 702. The Court held that,
because [t]he covenant not to compete which is the subject of this
action was expressly limited in duration to one year following the
termination of the employment relationship between plaintiff and
defendants[,] and because [t]hat date having passed pending
consideration of this appeal by this Court, the questions relating
to the propriety of the injunctive relief granted below are not
before us. Id. at 478-79, 241 S.E.2d at 702.
In the instant case, defendant appeals from a preliminary
injunction enjoining her from breaching a covenant not to compete.
The terms of the non-compete covenant contained in the employment
agreement between plaintiff and defendant expired on 15 December
2001, more than five months before this appeal was heard by this
Court. Plaintiff may not seek to enforce the covenant past the
period of time proscribed by the agreement. See Rug Doctor, 143
N.C. App. at 345, 545 S.E.2d at 767. Thus, the issues presented by
defendant's appeal have been rendered moot by the passage of time,
a fact defendant herself recognized in her petition for writ of
supersedeas. See Herff Jones Co., 35 N.C. App. at 479, 241 S.E.2d
at 702. We furthermore reject defendant's argument that her
appeal, although moot, nevertheless presents issues involvingmatters of public interest.
For the reasons set forth, we dismiss this appeal.
Appeal dismissed.
Judges MARTIN and CAMPBELL concur.
*** Converted from WordPerfect ***