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Tronitec Inc. v. Shealy

The trial court erred in granting summary judgment to plaintiffs on defendant's counterclaim for conversion and theft of a personal computer, since that claim was not governed by the Trade Secrets Act which generally supercedes other remedies for misappropriation of trade secrets.

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On January 5, 1998, Tony Shealy, Jarrett Black, and Rodney Smith resigned their positions with Tronitec, Inc. and started a competing business, Freedom Electronics, Inc. “FEI”. Tronitec and FEI repair and sell circuit boards used in gas station fuel pumps. On November 20, 1998, Shealy, Black, Smith and FEI sued Tronitec and one of its salesmen, Timothy Arrington, for tortious interference with contract and slander, among other things. Tronitec counterclaimed for misappropriation of trade secrets, injunctive relief, breach of duty of loyalty, conversion, theft and violation of the Georgia RICO act.1

In its September 16, 1999 order, the trial court denied Tronitec’s motion for summary judgment on Shealy, Black, Smith and FEI’s slander claim. In its October 29, 1999 order, the trial court ruled that Tronitec’s counterclaims were compulsory. The trial court also granted Shealy, Black, Smith and FEI partial summary judgment on Tronitec’s misappropriation counterclaim, and granted summary judgment to Shealy, Black, Smith and FEI on Tronitec’s claims for injunctive relief, conversion, theft and violation of the Georgia RICO act. In case number A01A0378, Tronitec appeals the October 29, 1999 order, including in its enumeration of errors the trial court’s September 16, 1999 denial of its motion for summary judgment on Shealy, Black, Smith and FEI’s slander claim. Shealy, Black, Smith and FEI cross-appeal in case number A010379.

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