UNION HOME MORTGAGE CORPORATION v. ERIK CROMER; HOMESIDE FINANCIAL, LLC - Articles

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UNION HOME MORTGAGE CORPORATION v. ERIK CROMER; HOMESIDE FINANCIAL, LLC

Posted by: Tanja Trezise on Apr 6, 2022

Court: 6th Circuit Court (Published Opinions)

Attorneys 1: ON BRIEF: David K. Stein, Jonathan N. Olivito, TAFT STETTINIUS & HOLLISTER LLP, Columbus, Ohio, for Appellants.

Attorneys 2: ON BRIEF: Jason T. Clagg, BARNES & THORNBURG LLP, Fort Wayne, Indiana, Paul N. Garinger, BARNES & THORNBURG LLP, Columbus, Ohio, for Appellee.

Judge(s): GUY, THAPAR, and READLER, Circuit Judges

Court Appealed: United States District Court for the Northern District of Ohio at Youngstown

RALPH B. GUY, JR., Circuit Judge. Defendant Erik Cromer was formerly a “managing loan officer” for plaintiff Union Home Mortgage. He agreed to several restrictive covenants, including that he would “not become employed in the same or similar capacity” with a competitive entity. Cromer left Union Home and started working for defendant Homeside Financial as a “non-producing” branch manager. It was not long before Union Home brought suit and sought a preliminary injunction to enforce Cromer’s restrictive covenants. The district court issued an injunction—without any time limitation—prohibiting Cromer, and anyone acting in concert, from inter alia “competing with Union Home.” Defendants argue that the injunction fails to satisfy the specificity requirements of Federal Rule of Civil Procedure 65(d)(1), is overbroad, and was otherwise improperly granted under the standard for preliminary injunctions. Because we agree, we VACATE the injunction and REMAND.

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