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A-Ryan Staffing Solutions Inc. v. Ace Staffing Management Unlimited, Inc.

Citations: 917 So. 2d 1000; 2005 Fla. App. LEXIS 20538; 2005 WL 3555844Docket: No. 5D05-508

Court: District Court of Appeal of Florida; December 29, 2005; Florida; State Appellate Court

Narrative Opinion Summary

This case involves an appeal by A-Ryan Staffing Solutions, Inc. against a decision denying its motion to transfer venue from Lake County to Seminole County, Florida. The dispute centers around a non-compete agreement between Ace Staffing Management Unlimited, Inc. and a former employee, Ary, following his termination. Ace filed a lawsuit in Lake County alleging contract violations, tortious interference, and civil conspiracy against Ary and A-Ryan. The appellate court found venue in Lake County improper under Florida Statutes section 47.051, as A-Ryan did not operate there, nor did the cause of action arise there. The court also addressed section 47.021, clarifying that it permits venue in any county where a defendant resides but does not expand venue options if both defendants reside in a common county, which was not the case here. The court rejected Ace’s claims that A-Ryan was Ary’s alter ego and subject to the non-compete agreement's venue clause, citing insufficient evidence. Consequently, the appellate court reversed the lower court's order and remanded the case, concluding that the proper venue was in Seminole County, where Ary resides.

Legal Issues Addressed

Alter Ego Doctrine and Corporate Disregard

Application: The court rejected Ace's claim that A-Ryan was the alter ego of Ary, noting the lack of evidence for corporate disregard and Ary's non-involvement in A-Ryan's operations.

Reasoning: Ace contends that A-Ryan is the alter ego of Ary, attempting to justify venue based on Ary's connection to the non-compete agreement. However, no evidence of corporate disregard was presented; A-Ryan was established by Ary’s wife and a friend after Ary’s termination, and they assert Ary has no operational role in the company.

Multiple Defendants Venue Provision

Application: The court addressed the application of section 47.021, which allows suit in any county where any defendant resides, but clarified it does not expand venue options if both corporate and individual defendants reside in a common county.

Reasoning: Section 47.021 provides an alternative venue provision for cases with multiple defendants, allowing for actions to be brought in any county where any defendant resides, which could potentially permit A-Ryan's inclusion in Lake County if a co-defendant resided there.

Non-Compete Agreement and Venue

Application: The court found that the non-compete agreement did not support venue in Lake County because no cause of action arose there, and A-Ryan was not bound by Ary's agreement to venue in Lake County.

Reasoning: Ace argues that venue against A-Ryan could be established in Lake County under section 47.041, claiming that since Ary agreed to venue there via a non-compete agreement, it could also bring claims against A-Ryan. However, this argument fails because no cause of action arose in Lake County; all arose in Orange and Seminole Counties, including Ary’s alleged breach of the non-compete agreement.

Venue Selection under Florida Statutes

Application: The appellate court determined that venue in Lake County was improper under section 47.051 of the Florida Statutes because A-Ryan Staffing Solutions, Inc. did not have an office there and the cause of action did not arise there.

Reasoning: Counsel for A-Ryan contended that the lawsuit should be filed in Orange or Seminole Counties, citing section 47.051 of the Florida Statutes, which mandates that actions against domestic corporations be initiated in the county where the corporation has an office, where the cause of action arose, or where the property in dispute is located.