Nilan's Alley, Inc. v. Ginsburg, 430 S.E.2d 368 (Ga. Ct. App. 1993). · Go Syfert
Nilan's Alley, Inc. v. Ginsburg, 430 S.E.2d 368 (Ga. Ct. App. 1993). Cases Citing This Book View Copy Cite
48 citation events (25 in the last 25 years) across 5 distinct courts.
Treatment trajectory · 1993 → 2026 · click a year to view as-of
1993 2009 2026
Cited for
208 Ga. App. at 146 Determining breach of duty through preparatory conversations5 citing casesployer. No existing contract was breached when appellant lost this customer. This evidence would authorize only a finding that appellee’s conversations were in…opening of page *146 (no citing court says what it cites this page for)
  • Disaster Servs., Inc. v. ERC P'ship, 492 S.E.2d 526 (Ga. Ct. App. 1997).published
    Driggers v. Continental Grain Co., 210 Ga. App. 293, 295 (2) ( 435 SE2d 722 ) (1993); Nilan’s Alley v. Ginsburg, 208 Ga. App. 145, 146 (2) ( 430 SE2d 368 ) (1993).
  • Coultas v. Dunbar, 467 S.E.2d 373 (Ga. Ct. App. 1996).published
    Nilan’s Alley v. Ginsburg, 208 Ga. App. 145, 146 (2) ( 430 SE2d 368 ) (1993).” Russell Corp. v. BancBoston Financial Co., 209 Ga. App. 660, 663 (4) ( 434 SE2d 716 ).
  • Renden, Inc. v. Liberty Real Est. Ltd. P'ship, 444 S.E.2d 814 (Ga. Ct. App. 1994).published
    Nilan’s Alley v. Ginsburg, 208 Ga. App. 145, 146 (2) ( 430 SE2d 368 ); Integrated Micro Systems, supra at 200 (3).
  • Driggers v. Cont'l Grain Co., 435 S.E.2d 722 (Ga. Ct. App. 1993).published
    Nilan’s Alley v. Ginsburg, 208 Ga. App. 145, 146 (2) ( 430 SE2d 368 ).
  • Russell Corp. v. Bancboston Fin. Co., 434 S.E.2d 716 (Ga. Ct. App. 1993).published
    Nilan’s Alley v. Ginsburg, 208 Ga. App. 145, 146 (2) ( 430 SE2d 368 ) (1993).
430 S.E.2d at 369 Defining agent authority and fiduciary duties in sales4 citing casessalesman, who was agent for manufacturer’s representative in soliciting offers to purchase products, owed a fiduciary duty to representative2 citing courts put it this way
  • Angela Harris v. Liberty Cmty. Mgmt., Inc., 702 F.3d 1298 (11th Cir. 2012).published
    (salesman, who was agent for manufacturer’s representative in soliciting offers to purchase products, owed a fiduciary duty to representative)
  • Impreglon, Inc. v. Newco Enter., Inc., 508 F. Supp. 2d 1222 (N.D. Ga. 2007).published
    (refusing to find impermissible customer solicitation where salesman merely inquired of customers whether, if he were to leave his current employment, they would consider placing orders through him, and the conversations…)
  • Hix v. Acrisure Holdings, Inc., No. 1:21-cv-04541 (N.D. Ga. July 18, 2022).
    (employee was his employer’s “agent for soliciting offers to purchase [the employer’s] products)
  • Wind Logistics Prof'l, LLC v. Universal Truckload, Inc., No. 1:16-cv-00068 (N.D. Ga. Sept. 23, 2019).
    See Nilan’s Alley, Inc. v. Ginsburg, 430 S.E.2d 368, 369 (Ga. Ct. App. 1993).
208 Ga. App. at 145 Determining breach of fiduciary duty by employee2 citing cases“these conversations were brief, non-specific, and strictly hypothetical”1 citing court quotes it
Other citing cases2 with no pin cite or quoted language on record
Retrieving the full opinion text from the archive…
Nilan’s Alley, Inc.
v.
Ginsburg
A92A2044.
Court of Appeals of Georgia.
Mar 10, 1993.
Published opinion
430 S.E.2d 368
1993 Ga. App. LEXIS 405
Gort, Hassett, Cohen & Beitchman, Robert W. Hassett, for appellant., Donald A. Weissman, Goodman & Bush, F. Clay Bush, Norman L. Smith, for appellee.
Carley, Johnson, Pope.
Cited by 21 opinions  |  Published
Carley, Presiding Judge.

After terminating his employment as a salesman for appellant-defendant, appellee-plaintiff began work for a competitor. Thereafter, appellee brought suit to recover unpaid commissions which he had allegedly earned during his employment with appellant. Appellant answered and also counterclaimed, alleging appellee’s tortious interference with business relations and his breach of fiduciary duties. After discovery, appellee moved for summary judgment on appellant’s counterclaims. The trial court granted appellee’s motion and appellant appeals.

1. Appellant is the manufacturer’s representative for certain products and, during appellee’s employment, he was appellant’s agent for soliciting offers to purchase those products. Accordingly, the evidence would authorize a finding that appellee owed fiduciary obligations to appellant. See OCGA § 23-2-58; Lane Co. v. Taylor, 174 Ga. App. 356, 362 (5) (330 SE2d 112) (1985). The issue for resolution is whether a genuine issue of material fact remains as to appellee’s breach of his fiduciary duty.

“[A]n employee breaches no fiduciary duty to the employer simply by making plans to enter a competing business while he is still employed. ‘Even before the termination of his agency, he is entitled to make arrangements to compete . . . and upon termination of employment immediately compete.’ [Cit.] . . . ‘[H]e is not, however, entitled to solicit customers for (a) rival business before the end of his employment nor can he properly do other similar acts in direct competition with the employer’s business.’ [Cit.]” E. D. Lacey Mills v. Keith, 183 Ga. App. 357, 362-363 (9) (359 SE2d 148) (1987).

Appellant urges that its customers were solicited by appellee during the time that he was employed as its salesman. The evidence shows that, while employed by appellant, appellee did have conversations with appellant’s customers concerning his future employment. However, these conversations were brief, non-specific and strictly hypothetical. He simply inquired of appellant’s customers whether, in the event he left appellant’s employment in the future, they would consider continuing to place their orders through him. The evidence is undisputed that appellee did not profit at appellant’s expense during his actual employment with appellant. Compare Vinson v. E. W. Buschman Co., 172 Ga. App. 306 (323 SE2d 204) (1984). No agreement was reached with any of appellant’s customers prior to appellee’s termination of his employment. It was only after appellee had already left his employment with, appellant that, upon being informed of appellee’s actual change of employers, one customer decided to switch from appellant and place its orders with appellee’s new em[*146] ployer. No existing contract was breached when appellant lost this customer. This evidence would authorize only a finding that appellee’s conversations were in mere preparation for post-employment competition and that appellee was not thereby in direct competition so as to breach the duties of good faith and loyalty that he then owed to appellant. Nationwide Advertising Svc. v. Thompson Recruitment Advertising, 183 Ga. App. 678, 683-684 (4) (359 SE2d 737) (1987). It follows, therefore, that the trial court correctly granted appellee summary judgment as to appellant’s counterclaim for breach of fiduciary duty. Kem Mfg. Corp. v. Sant, 182 Ga. App. 135, 142 (7a) (355 SE2d 437) (1987); Millwood Mouldings v. Wilson, 176 Ga. App. 845, 846 (2) (338 SE2d 60) (1985).

E. D. Lacey Mills v. Keith, supra at 363 (9), is not authority for a contrary holding. The Keith decision is factually distinguishable. There, the evidence showed that, while ostensibly employed by their former employer, the former employees had conducted numerous meetings, made many telephone calls and were frequently absent in pursuit of their plans to compete. On this evidence, it was held that a jury should determine whether the former employees had “fulfilled their duties to [their former employer] as full-time paid employees during the months they made plans for their new company.” (Emphasis supplied.) E. D. Lacey Mills v. Keith, supra at 363 (9). In the instant case, there is evidence only of appellee’s brief, non-specific and strictly hypothetical conversations regarding the prospect, rather than the certainty, of his future employment with appellant’s competitor.

Likewise, Lane Co. v. Taylor, supra at 361-362 (5), is not authority for a contrary holding in the instant case. Not only is that decision a physical precedent only, it is also factually distinguishable. The holding in Lane Co. was predicated upon the restrictive covenants contained in the former employee’s contract of employment. Here, there are no restrictive covenants which are enforceable as against appellee.

2. “ [A] cause of action for [intentional] interference with business relations does not require proof of a valid and enforceable contract.” Integrated Micro Systems v. NEC Home Electronics (USA), 174 Ga. App. 197, 200 (3) (329 SE2d 554) (1985). In order to recover under this theory, however, appellant would have to show that appellee “ ‘ “(1) acted improperly and without privilege. . . .” (Cits.)’ [Cit.]” Nationwide Advertising Svc. v. Thompson Recruitment Advertising, supra at 679-680 (1).

The only acts which are alleged to be improper and unprivileged are appellee’s conversations with appellant’s customers before termination of his employment as appellant’s salesman. Appellant urges that, by engaging in these conversations, appellee breached his fiduci[*147] ary duty and thereby committed improper and unprivileged acts. As discussed in Division 1, however, these conversations were not in breach of appellee’s fiduciary duty. Accordingly, the trial court correctly granted appellee summary judgment as to appellant’s counterclaim for intentional interference with contractual relations. See American Bldgs. Co. v. Pascoe Bldg. Systems, 260 Ga. 346, 349 (2) (392 SE2d 860) (1990). Compare E. D. Lacey Mills v. Keith, supra at 363-364 (10); Lane Co. v. Taylor, supra at 360 (3).

Decided March 10, 1993 — Reconsideration denied March 24, 1993 Gort, Hassett, Cohen & Beitchman, Robert W. Hassett, for appellant. Donald A. Weissman, Goodman & Bush, F. Clay Bush, Norman L. Smith, for appellee.

Judgment affirmed.

Pope, C. J., and Johnson, J., concur.