# U ni te d S ta te s Co ur t of A pp ea ls For the Eig hth Circu it

__ __ __ __ __ __ __ __ __ __ __ __ __ _
No. 1 4- 19 70

__ __ __ __ __ __ __ __ __ __ __ __ __ _
St ua rt C . Irb y

Co m pa ny, Inc.

ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el la nt

v.

Bran do n Ti pt on ; Who le sa le Elec tri c Su pp ly Com pa ny, Inc.; Jo hn Doe, 1 -5 ; Mi ch ael Gil be rt; Ste ph en Pad ge tt ; Ku rt B lu m fel de r; Ga ry Cu m m in gs

ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts - App el le es

__ __ __ __ __ __ __ __ __ __ __ __ __ _
No. 1 4- 26 82

__ __ __ __ __ __ __ __ __ __ __ __ __ _
St ua rt C . Irb y

Co m pa ny, Inc.

ll ll ll ll ll ll ll ll ll ll l Pla in ti

ff - App el la nt

v.

Bran do n Ti pt on ; Who le sa le Elec tri c Su pp ly Com pa ny, Inc.; Jo hn Doe, 1 -5 ; Mi ch ael Gil be rt; Ste ph en Pad ge tt ; Ku rt B lu m fel de r; Ga ry Cu m m in gs

ll ll ll ll ll ll ll ll ll ll l Defe nd

an ts - App el le es

__ __ __ __ __ __ App eal s fr om

Uni te d S ta te s Di st ric t Co ur t fo r th e Eas te rn Dis tri ct of Ark an sa s - Li tt le Ro ck

__ __ __ __ __ __Su bm it te d: Apri l 1 6, 2 01 5 Fil ed : Au gu st 6, 2 01 5

__ __ __ __ __ __
Befo re WOL LMAN an d GRUENDER, Ci rcu it Ju dg es , and GRITZNER, Dis tri ct 1 Ju dg e.

__ __ __ __ __ __ GRUENDER, Circ ui t J ud ge

.

In th is ap pe al
, we co ns id er clai m s bro ug ht by an em pl oyer aft er sev eral of it s

em pl oyees le ft to wor k fo r a co m pe ti to r. The di st ric t co ur t gr an te d su m m ary jud gm en t to th e de fen da nt s on al l cl ai m s an d award ed th em at to rn ey s’ fees an d co st s. W e co nc lu de th at gr a n t i ng su m m ary jud gm en t to th e de fen da nt s was in ap pr op ria te

an d t ha t t he award of a tt or ne y s’ fees an d c os ts m us t b e v acat ed

.

I. Ba ck gr ou nd

Bran do n Tip to n, Mi ch ael Gil be rt, an d St ev en Pad ge tt wor ke d fo r Tread way Elec tri c Co m

pa ny, In c. (“ Tread way ”), a di st rib ut or of el ec t r i c a l pr od uc ts

. Tip to n in it ia ll y wor ke d fo r Tread way in it s of fic e in Lit tl e Ro ck
, Ark an sa s an d la te r be cam e th e br an ch m an ag er fo r it s Co nwa y , Ark an sa s lo cat io n. Gil be rt an d Pad ge tt wor ke d

as in si de sa le sm en fo r Tread way in Co nwa y

. W hi le wor ki ng fo r Tread way , Tip to n, G i l b e r t, an d Pad ge tt each si gn ed ag reem en ts th at co nt ai ne d th e fo ll owi ng no nco m pe te pro vi si on :

[I]f and when y ou lea ve Tread way ’s em pl oy, for wh at ev er reas on , you wil l no t co m

pe te wit h Tread way or it s su bs id ia rie s by so li ci t i n g or

acce pt in g bu si ne ss fro m Tread way ’s cu st om ers wit hi n y ou r te rri to ry , as

The Hon or ab le Ja m es E. Grit zn er, Uni te d St at es Dis tri ct Ju dg e fo r th e 1 So ut he rn Dis tri ct of I owa , si tt in g b y de si gn at io n.

-2

-de fin ed by Tread way Ele c t r i c Co m pa ny, fo r at le as t on e (1 ) y ear aft er l eav in g; an d

. . . y ou wil l no t so li ci t th e em pl oym en t of an y Tread w a y rep res en ta ti ve s fo r at lea st on e (1 ) y ear a fte r le av in g.

Th e reaf te r, St ua rt C. Irb y Co m pa ny, In c. (“ Irb y ”) be cam e in te res te d in

pu rch as in g m an y of Tread way ’s as se ts , an d an as se t pu rch as e a g r e e ment (“ APA”)

was si gn ed on Decem

be r 8, 20 11

. The APA st at ed th a t Tr e a d way “ wil l as si gn an d

tra ns fer to [Irb y ]

. . . al l of [Tread way ’s] rig ht s, ti tl e an d in te res ts in an d to , an d [Irb y ] wil l ta ke as si gn m en t of an d as su m e, al l rig ht s an d in te r e s t in an d ob li ga ti on s un de r th e Ass i g n e d Co nt ract s.” Irb y ’s ch ie f op erat in g of fic er ha s av erre d th at Tip to n’s, Gil be rt’s, an d Pad ge tt ’s no n- co m pe te ag reem en ts were as si gn ed to Irb y

. In d e e d
, whe n Tread way an d Irb y di sc us se d whi ch co nt ract s wou ld be as si gn e d, th ey di sc us se d th e no n- co m

pe te ag reem en ts , an d Tread way ’s pr es id en t sh owe d Tipt on ’s

ag reem en t t o Ir by.

Th e APA to ok effe ct on Ja nu ary 1, 20 12
, at whi ch ti m e Tip to n, Gil be rt, an d Pad ge tt be cam e Irb y em

pl oyees. Irb y ret ai ne d th em wit h es se nt ia ll y th e sa m e be ne fit s

an d se ni or it y

. F o r t he em pl oyees, th e tra ns it io n fro m Tread way to Irb y ap pe ars to ha ve be en se am le ss

. Tip to n te st ifi ed th at Irb y ’s bu si ne ss was th e sa m e as Tread way ’s ha d b e e n. As a br an ch m an ag er fo r Irb y , Tip to n di rect ed th e of fic e’s op erat io ns , in cl ud in g sa le s, de li ve ry of pr od uc ts , an d ad m in is tra ti ve act iv it ie s. Tip to n in te ract ed da il y wit h cu st om ers , ev en ta ki ng th em ou t fo r m eal s an d on an nu al fis hi ng tri ps

. As in si de sal es m en for Irb y , Gil be rt and Pad ge tt al so de al t with cu st om ers on a reg ul ar ba si s.

Afte r wo r k i n g fo r Irb y fo r ab ou t on e y ear, Tip to n be ga n ta lk in g wit h Kur t Bl um fel de r, th e Exe cu ti ve Vice Pres id e n t o f W ho le sa le Elec tri c Su pp ly Co m pa ny, In c. (“ W ho le sa le ”). Tip to n ad m it te d th at W ho le sa le di d “ pr et ty m uc h th e sa m e th in g”

as Irb y , an d Bl um fel de r li ke wis e ack no wled ge d th at th e co m pa ni es were co m

pe ti to rs

-3

-in Ark an sa s. On Mar ch 14
, 20 13
, Tip to n an no un ced th at he was le av in g Irb y to wor k

fo r W ho le sa le . The n ex t d ay , Gil be rt a nd Pad ge tt di d t he same.

W ha t ha pp en ed in ad va nc e o f t he se res ig na ti on s fo rm s th e co re of th is cas e. Dur in g hi s de po si ti on ap pr ox im at el y ei gh t m on th s aft er he le ft Irb y , Tip to n ha d ve ry li tt le reco ll ect io n a bo ut an y co nv ers at io ns he ha d wi th Blu m fel de r ab ou t co m in g t o

wor k fo r W ho le sa le

. Tip to n di d no t rem em be r whe th er he ha d in fo rm ed Gil be rt an d Pad ge tt ab ou t a m eet in g he ha d wit h Bl um fel de r. Nor co ul d Tip to n reca ll whe th er he

to ld Bl um fel de r th at he sh ou ld hi re Gil be rt an d Pad ge tt

. Bl um fel de r, ho wev er,
te st ifi ed th at he sp ok e wit h Tip to n by te le ph on e “ a nu m be r of t im es ” in earl y 20 13 ab ou t hi m co m in g to wor k fo r W ho le sa le

. Tip to n ack no wled ge d th at he was

“ [p ]oss ib ly lo ok in g fo r em pl oym en t” if he was ta lki ng to Bl um fel de r aro un d th is ti m e. On J an ua ry

5 an d 8 , th e fo ll owi ng tex t-messa ge ex ch an ge oc cu rred :

Bl um fel de r: In te res te d in m eet in g to m or ro w AM or lu nc h; Or

Th u r s d a y

. . . I can m eet an y ti m e 11 AM-9 PM

. . . I n Co n w a y o r Li t tl e Ro ck

. . . Let m e kn ow if y ou gu y s r

av ai la bl e an y

of t he se ti m es pl eas e. Than ks

. Tip to n: Thu rs da y

wou ld be be tt er.

Bl um fel de r: Ok gr eat

. Are y ou gu y s ab le to co m e to Lit tl e Ro ck to se e

ou r pl ace o r wou ld y ou pre fer t o m eet in Co nwa y ?

And on Jan ua ry

29 , th e fo ll owi ng tex t-messa ge ex ch an ge oc cu rred :

Tip to n: W ha t t im e d oe s ev eryone lea ve th e st or e in co nwa y [? ]

Bl um fel de r: I’ll ch as e th em ou t at 5 an d wil l be th e r e wait in g on y ou

gu y s. What be er u li ke [? ]

-4

-Fu rth erm or e, whe n ask ed whe th er he talk ed wit h Gi lb ert an d P ad ge tt ab ou t l eav in g

Irb y an d go in g to W ho le sa le
, Tip to n ad m it te d th at he m et wit h th em an d Bl um fel de r

on Mar ch 13
, th e da y be fo re Tip to n res ig ne d fro m Irb y

. Tip to n di d no t r e memb er whe th er h e h ad sp ok en to Gil be rt a nd Pad ge tt ab ou t l eav in g Ir by befo re t he n.

Irb y su ed Tip to n, Gil be rt, Pad ge tt , Bl um fel de r, an d W ho le sale as se rti ng cl ai m s fo r br each of fi du ci ary du ty, br each of co nt ract , ci vi l co ns pi racy, an d to rti ou s in te rfer en ce wit h a co nt ract

. On cro ss -m ot io ns for su m m ary jud gm en t, th e di st ric t 2

co ur t gr an te d su m

m ary jud gm en t to th e de fen da nt s on al l cl ai m s. The co u r t t h e n award ed th e de fen da nt s in ex ces s of $2 00 ,00 0 in a t t o r n e ys ’ f ees an d co st s. Irb y
ap pe al s b ot h ru li ng s.

II

. Dis cus si on

A.

W e rev ie w th e di st ric t co ur t’s gr an t of su m m ary jud gme n t d e no vo , Lo ft ne ss Sp eci al iz ed Far m Equ ip

., In c. v. Twi es tmey er , 74 2 F.3 d 84 5, 8 4 9 (8 th Ci r. 20 14 ), affi rm in g if “ th ere is no ge nu in e di sp ut e as to an y m at eri al fact an d th e mo v a nt is

en ti tl ed to jud gm en t as a m at te r of la w,” Fed

. R. Ci v. P. 56 (a). “ At th e su m m ary jud gm en t st ag e, fact s m

us t be vi ewe d in th e li gh t m os t fav or ab le to th e no nm ov in g
pa rty on ly if th ere is a ‘gen ui ne ’ di sp ut e as to th os e fact s.” Sc ot t v. Har ri s , 55 0 U.S.
37 2, 38 0 (2 00 7) (q u o t i n g F e d

. R. Ci v. P. 56 (c))

. To su rv iv e a su m m ary-j ud gm en t

m ot io n, th e ev id en ce m

us t be “ su ch th at a reas on ab le jury co ul d retu rn a ve rd ic t for th e no nm ov in g pa rty.” And er so n v. Li be rt

y Lo bb y, In c. , 4 77 U.S. 2 42 , 2 48 (1 98 6)

. The pa rti es ag ree th at Ark an sa s su bs ta nt iv e la w ap pl ie s he r e

. C o n se qu en tl y , we

Irb y al so su ed Gary Cu m

m in gs , an ot he r W ho le sa le em pl oyee, but Irby ’s br ie fs 2

on ap pe al do no t co nt es t th e di st ric t co ur t’s de ci si on to di sm is s t h e c l a i ms a ga in st Cu m m in gs

.
-5

-“ ap pl y de ci si on s of th e Ark an sa s Su pr em e Co ur t co ns tru in g Ark a n s a s l a w , an d we

at te m pt to pr ed ic t ho w th at co ur t wou ld de ci de an y st at e la w qu es ti on s th at it ha s no t
y et res ol ve d

. ” G &

K Se rv s. Co

, In c. v. Bil l’s Su pe r Foo ds

, In c. , 76 6 F.3 d 79 7, 80 0 (8 th Cir . 20 14 ).

1. Bre ac h o f Fidu ci ar y Dut y

Irb y fir st arg ue s th at th e di st ric t co ur t erre d in gr an ti ng su m m ary jud gm en t on it s fid uc ia ry -d ut y cl ai m ag ai ns t Tip to n. As th e br an ch m an ag er of Irb y ’s Co nwa y of fic e, Tip to n owe d a fid uc ia ry du ty to Irb y

. Se e Pen ni ng to n v. Har ves t Foo ds

, In c. , 93 4 S.W .2d 48 5, 49 5 (Ark

. 19 96 ) (“ [A] m an ag er owe s a fid uc ia ry d u t y t o hi s bu si ne ss .”); Ta nd

y Co rp

. v. Bon e , 67 8 S.W .2d 31 2, 31 8 (Ark

. 19 84 ) (s am e). The

pa rti e s d i s a g r e e ab ou t whe th er a tri al is ne ces sa ry to de te rm in e if Tip to n ab id ed by
th at du ty.

Irb y co nt en ds th at Tip to n br each ed hi s fid uc ia ry du ty by recr ui ti ng Gil be rt an d Pad ge tt to joi n W ho le sa le

. “ Ark an sa s la w st rik es a care fu l ba la nc e be t w e e n an

em pl oyer’s rig ht to em

pl oyee lo y al ty, an d an em pl oyee’s rig ht

— ab se nt co nt rary

co nt ract ua l co m

m it m en t— to res ig n an d pu rs ue hi s care er wit h a c o mp et in g

em pl oyer.” Vig or o In du s., In c. v. Cr is p , 82 F.3 d 78 5
, 7 8 8 (8 th Ci r. 19 96 ). Und er Ark an sa s la w, “ [e]ven co rp or at e of fic ers an d di rect or s, who ha ve fid uc ia ry du ti es to th e co r po rat io n be y on d th os e of le ss es se nt ia l em pl oyees, are free to res ig n an d go in to co m pe ti ti on , s o l o n g a s t he y rem ai n lo y al pr io r to res ig ni ng .” Id

. And a

co rp or at e fid uc ia r y, w h i le st il l em pl oyed, is free to no ti fy hi s co ll eag ue s an d hi s

em pl oyer’s cu st om ers of hi s in te nt to le av e. I d

. H o w e ve r, be fo re res ig ni ng , a

m an ag er ha s a du ty of lo y al ty th at “ pr ecl ud e[s ] hi m fro m so li ci ti ng ot he r em pl oyees

or cu st om ers to lea ve [th e em pl oyer] wit h h im .” Id

.

W e co nc lu de th at a tr ia l is nec es sa ry to de te rm in e whe th er Tipt on , whi le st il l

em pl oyed by Irb y , so li ci te d Gil be rt an d Pad ge tt to le av e fo r W ho le sa le

. Tip to n sp ok e

-6

-wit h Bl um fel de r by te le ph on e “ a nu m be r of ti m es ” in earl y 20 13 ab ou t joi ni ng W ho le sa le

. In Ja nu ary 20 13
, Bl um fel de r an d Tip to n ex ch an ge d te xt m es sa ge s to

arra ng e a m eet in g fo r “ y ou gu y s” at whi ch Bl um fel de r wou ld pr ov id e be er an d a to ur of W ho le sa le ’s faci li ty. A reas on ab le jury co ul d co nc lu de th at th e “ gu y s” fo r who m Tip to n was arra ng in g a m eet in g in cl ud ed Gil be rt an d Pad ge tt , es pe ci al ly be cau se Bl um fel de r ad m it te d th at he was in te res te d in m eet in g th em

. Fu rt h e r more, a

reas on ab le jury co ul d in fer th at by arra ng in g a m eet in g wit h Bl um fel de r th at in vo lv ed be er an d a to ur of W ho le sa le ’s faci li ty, Tip to n w a s t r yi ng to co nv in ce Gil be rt an d Pad ge tt to joi n W ho le sa le wit h hi m

. Se e And er so n , 47 7 U.S. at 24 8. Tip to n co ul d no t

reca ll whe th er h e as ke d Bl um fel de r to hi re Gil be rt an d Pad ge tt , bu t Tip to n ad m it s th at , be fo re he l e f

t Irb y , he m et wit h th em to di sc us s le av in g Irb y to be co m e W ho le sa le em

pl oyees. Thi s m eet in g, whi ch Bl um fel de r at te nd ed
, oc cu rred on Mar ch
13
, th e da y be fo re Tip to n res ig ne d. Tip to n co ul d no t reca ll whe th er th is was th e fir st ti m e th at he ha d d is cu ss ed lea vi ng Irb y wit h Gi lb ert an d P ad ge tt

.

W e ack no wled ge th at Tip to n’s co nd uc t m ay ha ve be en co ns is te nt wit h hi s du ty of lo y al ty. In th e ab se nc e of a co nt ract ua l co m m it m en t (a to pi c d is cu ss ed be lo w i n Part II.A.2)
, Tip to n was free to ex pl or e ot he r em pl oym en t op ti on s, inc lu di ng wit h a

co m pe ti to r li ke W ho l e s a l e

. S e e Vig or o , 82 F.3 d at 78 8- 79

. And Tip to n was no t
req ui red to ke ep hi s de pa rtu re fro m Irb y a se cret

. S e e i d

. Tha t sa id
, m ak in g al l

reas on ab le in fere nc es in fav or of Irb y , we co nc lu de th at a reas on ab le jury co ul d fin d
th at Tip to n cro ss ed th e li ne be twee n di sc us si ng hi s i nt en t t o l eav e Irb y wit h Gilb ert

an d Pad ge tt an d recr ui ti ng th em to fo ll ow hi m to W ho le sa le

. Se e And er so n , 47 7 U.S.

at 24 8. W e th eref

or e di sa gr ee with th e di st ric t co ur t’s fin di ng th at th ere is “ no th in g in th e reco rd ” to su gg es t th at Tip to n di sr eg ard ed hi s d u t y of lo y al ty. Irb y ha s
pr es en te d s uf

fic ie nt ev id en ce t o c reat e a g en ui ne di sp ut e o f m at eri al fact

.

-7

-2. Bre ac h o f Con tra ct

Irb y ne xt arg ue s th at Tip to n, Gil be rt, an d Pad ge tt br each ed th ei r no n- co m pe te
ag reem en ts

. The di st ric t co ur t gr an te d su m m ary jud gm en t on th is c l a i m fo r th ree

reas on s. Fi rs t, th e co ur t fo un d th at al th ou gh th e no n- co m pe te ag reem en ts were

“ arg ua bl y a s s i g n ed ” to Irb y , th ere was no ev id en ce th at Tip to n, Pad ge tt , or Gil be rt br each ed th ei r ag reem en ts . No su ch ev id en ce exi st ed
, th e co ur t exp la in ed , bec au se th e no n- co m

pe te ag reem en ts ’ on e-year pe rio d was tri gg ered whe n Tip to n, Gil be rt,

an d Pad ge tt be cam e Irb y em pl oyees an d be cau se th ey di d no t joi n Irb y ’s co m pe ti to r, W ho le sa le
, un ti l more th an on e y ear la te r. Seco nd
, th e co ur t fo un d th at th e no nco m pe te ag reem en ts w e r e un en fo rcea bl e be cau se th ey di d no t pr ot ect a le gi ti m at e bu si ne ss in te res t. Fi na ll y , th e c o u rt de te rm in ed th at th e no n- co m pe te ag reem en ts

were u ne nf

or ceab le du e to th e la ck of a reas on ab le ge og rap hi c li m it at io n.

W e be gi n wit h th e th res ho ld qu es t io n of whe th er Ark an sa s la w pe rm it s th e

as si gn m en t of an em

pl oyee’s no n- co m

pe te ag reem en t to a su cces so r em pl oyer. The di st ric t co ur t di d no t reac h th is is su e, an d th e pa rti es ha ve n o t d ire ct ed us to an in st an ce wh ere t he Arka ns as Su pr em e Co ur t has de ci de d th e q ue st io n. St at e co ur ts

are sp li t on th is is su e, wit h th e m ajor it y ru le be in g th at a co ve na nt no t to co m pe te can be as si gn ed to a su cces so r em pl oyer. 6 W il li st on on Co nt ract s § 13 :1 3 (4 th ed

. 19 90 ).
We pr ed ic t th at th e Ark an sa s Su pr em e Co ur t wou ld ad op t th e m ajor it y ru l e t h a t a

co ve na nt no t to co m

pe te can be as si gn ed

. Se e Man ag ed Hea lt h Ca re Ass oc s., In c. v. Ket ha n , 20 9 F.3 d 92 3, 92 8- 30 (6 th Ci r. 20 00 ) (m ak in g a si m il ar pr ed ic ti on un de r Ken tu ck y la w). W hi le it is tru e th at Ark an sa s la w is ge ne ral ly sk ep ti cal of co ve na nt s

no t to co m

pe te , se e, e.g

. , Duf

fn er v. Alb er ty , 71 8 S.W .2d 11 1, 11 2 (A r k

. C t

. A p p

. 19 86 ) (en ba nc ), Ark an sa s co ur ts al so reco gn iz e th e le gi ti m ate ro les th at no n- co m pe te
ag reem en ts can pl ay

. Fo r ex am pl e, a co ve na nt no t to co m pe te can pr ot ect a bu si ne ss
ag ai ns t th e ap p r o p r i a t i on of it s cu st om ers , Bor de n, In c. v. Hue y , 54 7 S.W .2d 76 0,
76 1- 62 (Ark

. 19 77 ), or ag ai ns t th e lo ss of it s tra de se cret s, Ork in Exte rmi na ti ng Co

. of Ark. v. Mur re ll
, 20 6 S.W .2d 18 5, 18 9- 90 (Ark

. 19 47 ). Perm it ti ng th e as si gn m en t

-8

-of no n- co m

pe te ag reem en ts is in ke ep in g wi th pre se rv in g t he se leg it im at e bu si ne ss in te res ts

. W e al so no te th at th e Ark an sa s Su pr em e Co ur t ha s sp ok en fav or ab ly ab ou t al lo win g th e a s s i g n men t of a co ve na nt no t to re-e ng ag e in bu si ne ss , Bled so e v. Ca rp en te r , 25 4 S.W

. 67 7, 67 8 (Ark

. 19 23 ), a di ffer en t bu t an al og ou s co nt ract rig ht
,

se e Mad is on Ban k & Tr us t v. Fir st Na t’l Ban k of

Hun ts vi ll e , 63 5 S.W .2d 26 8, 27 0- 73 (Ark

. 19 82 ). Fo r th es e reas on s, we pr ed ic t th at th e Ark an sa s Sup rem e Co ur t wou ld fo ll ow th e m ajor it y ru le by al lo win g a c o v e n a n t n ot to co m pe te to be as si gn ed to a

su cces so r em

pl oyer.

Th i s co nc lu si on le ad s to th e qu es ti on of whe th er Tip to n’s, Gil be rt’s, an d Pad ge tt ’s no n- co m

pe te ag reem en ts were va li dl y as si gn ed

. “ W he th er an as si gn m en t of co nt ract rig ht s ha s oc cu rred is de te rm in ed by th e in te nt of th e pa rti es ; th e as si gn or

m us t in te nd to tra ns fer a pr es en t in te res t in th e su bjec t m at te r of th e co nt ract .” Bea l
Ban k, S.S .B. v. Th or nt on , 19 S.W .3d 48
, 51 (Ark

. Ct

. App

. 20 00 ) (q uo ti ng 6 Am

. Ju r. 2d Ass ig nme nt

s § 13 5 (1 99 9) ); se e al

so Ko ch v. Co mpu cr ed it

Co rp

. , 54 3 F.3 d 46 0,
46 5 (8 th Ci r. 20 08 ). Ass ig nm en t is a qu es ti on of fact

. Bea l Bank
, 19 S.W .3d at 51

. W e ag ree wit h th e di st ric t co ur t’s co nc lu si on th at th e no n- co m pe te ag reem en ts were “ar g u a b l y as si gn ed .” The APA in di cat es th at Tread way as si gn ed so m e of it s

co nt ract s to Irb y

. Irb y ’s ch ie f op erat in g of fic er so ug ht to el im in a t e t h e A PA’s

am bi gu it y by av erri ng th at th e no n- co m pe te ag reem en ts were as si gn ed to Irb y

. Thi s
st at em en t is co ns is te nt wit h reco rd ev id en ce th at , whi le di sc us si ng th e as si gn m en t of

co nt ract rig ht s, Tread way an d Irb y di sc us se d th e no n- co m pe te ag reem en ts , at whi ch

po in t Tread way ’s pr es id en t sh owe d Tip to n’s ag reem en t to Irb y

. Thi s ev id en ce ab ou t

as si gn m en t is n o t c o nc lu si ve , bu t it is su ffi ci en t to ge ne rat e a ge nu in e di sp ut e of

m at eri al fact ab ou t whe th er Tread way as si gn ed th e no n- co m pe te ag reem en ts to Irb y

.

W e tu rn no w to th e le ga l effe ct of th is as si gn m en t of co nt ract rig ht s. The

ge ne ral ru le is th at “ an as si gn m en t op erat es to pl ace th e as si gn ee in th e sh oe s of the

as si gn or , an d pr ov id es th e as s i g n e e w i th th e sa m e le ga l rig ht s as th e as si gn or ha d be fo re as si gn m en t.” Ca sc ad es De v

. o f M i n n. LLC v. Na t’l Sp eci al ty In s. , 6 75 F.3 d

-9

-10 95 , 1 09 9 (8 th Ci r. 20 12 ) (al te rat io n an d em ph as is om it te d) (q uo ti ng Ill . Fa rme rs In s. Co. v. Gla ss Se rv

. Co

. , 68 3 N.W .2d 79 2, 80 3 (Mi nn

. 20 04 )); se e Ci ti ba nk

, N.A.

v

. Tel e/ Res., In c. , 72 4 F.2 d 26 6, 26 9 (2 d Ci r. 19 83 ) (“ In so far as an as s i g n men t
to uc he s on th e ob li ga ti on s of th e ot he r pa rty to th e un de rlyin g co nt ract , th e as si gn ee si m pl y m ov es in to th e sh oe s o f th e as si gn or .”). An as si gn m en t o f co nt ract rig ht s i s

a “ se pa rat e ag reem en t be twee n th e as si gn or an d th e as si gn ee whi ch m erel y tra ns fers th e as si gn or ’s co nt ract rig ht s, le av in g t h e m i n f u ll fo rce an d effe ct as to th e pa rty ch arg ed .” Ci ti ba nk , 72 4 F .2d at 2 69

.

The di st ric t co ur t fo un d th at Irb y on ly pa rti al ly st ep pe d in to Tread way ’s sh oe s

as a res ul t of th e as si gn m en t, reas on in g th at Irb y co ul d en f o r c e t h e no n- co m

pe te
ag reem en ts ag ai ns t Tip to n, Pad ge t t , a n d G i l be rt bu t on ly co ul d do so fo r on e y ear af t e r t h e y le ft Tread way ’s em pl oy. The co ur t reac he d th is co nc lu si on be cau se it fo un d th at be co m in g Irb y em pl oyees aft er th e as se t sa le tri gg ered th e be gi nn in g of th e

no n- co m p e t e a g r e e m en ts ’ on e-year pe rio d. As a res ul t of th is ap pr oa ch to th e

as si gn m en t, th e di st ric t c o u r t de te rm in ed th at th e no n- co m pe te ag reem en ts ha d

ex pi red by th e ti m e Tip to n, Gil be rt, an d Pad ge tt le ft Irb y to w o r k f o r W ho le sa le in
Mar ch 20 13

. The di st ric t co ur t offe red no le ga l su pp or t for th is pe cu li ar resu lt
, an d

w e s e e n o reas on to de vi at e fro m th e no rm al m an ne r in whi ch th e as si gn m en t o f

co nt ract rig ht s op erat es

. Co ns eq ue nt ly, we co nc lu de th at if th e no n- co m pe te
ag reem en ts were in fact as si gn ed to Irb y , it fu ll y st ep pe d in to Tread way ’s sh oe s an d

rece i v e d Tr e a d w a y ’s rig ht s “ in fu ll fo rce an d effe ct as to th e pa rty ch arg ed .” Id

. Fo ll owi ng th e as si gn m en t, “ [t]he on ly th in g th at ch an ge d was th e en ti ty no w en ti tl ed

to en fo rce th e te rm s an d co nd it io ns th at [Tip to n, Gil be rt, an d Pad ge tt ] ha d pr ev io us ly

ag reed to whe n [th ey ] en te red in to [the non-co m pe te ] ag reem en t[s ]. ” Se e Ket ha n , 20 9
F.3 d at 92 7- 28

. Thu s, if th e no n- co m pe te ag reem en ts we r e a s s i gn ed
, we co nc lu de
th at Irb y ha d th e ab il it y to en fo rce th em fo r on e y ear aft er Tip to n, Gil be rt, an d Pad ge tt

res ig ne d fr om

Irb y

.

-1 0-Thi s br in gs us to th e di st ric t co ur t ’s a lt ern at iv e co nc lu si on th at th e no nco m pe te ag reem en ts are un en fo rcea bl e un de r Ark an sa s la w. Gen eral ly, a no nco mp e t e a gr eem en t m

us t m eet th ree req ui rem en ts to be en fo rcea bl e: “ (1 ) th e [em pl oyer] m us t ha ve a va li d in te res t to pr ot ect ; (2 ) th e ge og rap hi cal res tri ct io n m us t

no t be ov erl y br oa d; an d (3 ) a reas on ab le ti m e li m it m us t be im po se d.” Duf

fn er , 71 8
S.W .2d at 11 2. The va li di ty of a co ve na nt no t to co m pe te de pe nd s up on th e fact s an d ci rcu m st an ces of each cas e. Opt ic al Par tn er s, In c. v. Dan g , 3 81 S.W. 3 d 4 6
, 53 -5 4 (Ark

. 20 11 ). The di st ric t co ur t he ld th at th e no n- co m pe te ag reeme n t s were

ov erb ro ad
, an d th us un en fo rcea bl e, be cau se th ey di d no t pr ot ect a va li d in te res t an d be cau se th ey

lac ke d a reas on ab le ge og rap hi c li m it at io n.

The di st ric t co ur t co nc lu de d th a t i t “ ap pe ars ” th at th e on ly in te res t pr ot ect ed by t h e no n- co m

pe te ag reem en ts was or di na ry co m pe ti ti on

. Se e Ben di ng er v. Mar sh al lt ow n Tr ow el l Co

. , 9 9 4 S.W .2d 46 8, 47 2 (Ark

. 19 99 ) (“ [T]he la w wil l no t
pr ot ect pa rti es ag ai ns t or di na ry co m pe ti ti on .”). Irb y co un te rs th at a co ve na nt no t to

co m pe te va li dl y can pr ot ect an em pl oyer ag ai ns t th e lo ss o f i t s c u s to m ers

. Thi s is

tru e.

Th e m os t im

po rta nt si ng le as se t of m os t bu si ne ss es is th ei r st oc k o f

cu st om er s. Prote ct io n of th is as se t ag ai ns t ap pr op ria ti on by an em pl oyee is reco gn iz ed as a le gi ti m at e in te res t of th e em pl oyer. A res tri ct iv e

co ve na nt , th eref

or e, fu lfi ll s th e fir st req u i r e m en t on whi ch it s

en fo rcea bi li ty de pe nd s, if it is ne ces sa ry to pr ot ect th e em pl oyer ag ai ns t lo ss of h is cu st om ers

.

Bor de n , 54 7 S.W .2d at 76 1 (q uo ti ng 41 A.L.R. 2 d 15
, 71 (1 95 5) ). An em pl oyer’s

ne ed to pr ot ect it se lf ag ai ns t th e lo ss of it s cu st om ers can be pa rti cu la rly m ean in gf ul wit h res pe ct to an em

pl oyee, su ch as an ou ts id e sa le sm an , who “ de al s wit h cu st om ers
away fro m th e em

pl oyer’s pl ace of bu si ne ss an d bu il ds up pe rs on al rel at io ns hi ps th at bi nd th e cu st om ers to hi m se lf in st ead of to th e em pl oyer’s bu si ne ss .” Id

. at 76 1- 62 ;

se e al so Gir ar d v. Reb sa men In s. Co

. , 68 5 S.W .2d 52 6, 52 7- 28 (Ark

. Ct

. App

. 19 85 ).

-1 1-A d i s t r i c t co ur t in Ark an sa s ha s reas on ed th at an em pl oyer ha s a va li d in te res t i n
pr ot ect in g ag ai ns t th e lo ss of it s cu st om ers wit h res pe ct to em pl oyees who “ were th e face of th e c o mp a n y i n th ei r sa le s te rri to rie s an d sp en t se ve ral y ears cu lt iv at in g rel at io ns hi ps wit h th ei r cu st om ers .” Ch ur ch Mut

. In s

. C o

. v

. Co pe nh av er , No.
4: 09 CV0 04 87 JM M, 2 01 0 WL 21 05 62 3, at *3 (W .D. Ark. May 24 , 20 10 ).

W e co nc lu de th at a ge nu in e is su e of m at eri al fact ex is ts co nc ern in g whe th er th e

no n- co m pe te ag reem en ts were n e c e s s a ry to pr ot ect Irb y fro m lo si ng it s cu st om ers

. Se e Mer cy Heal th Sy s. of Nw. Ark., Inc. v. Bica k
, 38 3 S.W .3d 86 9, 87 3- 75 (Ark

. Ct

. App

. 20 11 ); St at co W

ir el es s, LLC v. Sw

. Bell W ir el es s, LLC
, 95 S.W .3d 13
, 16 (Ark

. Ct

. App

. 20 03 ). Befo re be co m in g W ho le sa le em pl oyees, Tip to n, Gil be rt, an d Pad ge tt
sp en t se v e r al y ears de ve lo pi ng cu st om er rel at io ns hi ps as Tread way an d Irb y

em pl oyees. Acco rd i n g t o Tip to n, cu lt iv at in g th es e cu st om er rel at io ns hi ps is
im po rta nt to Irb y ’s bu si ne ss . He furt he r ag reed th at “ it tak e[s ] a whi le to de ve lo p a

cu st om er so th at th ey bu y fro m y ou .” As Irb y ’s br an ch m an ag er, Tip to n sp ok e wit h

cu st om ers on a da il y ba si s. Tip to n ack no wled ge d th at so m e cu st om ers di d bu si ne ss wit h Irb y be cau se th ey kn ew hi m , li ke d hi m , an d ha d wor ke d wit h hi m be fo re. Tip to n fo st ered cu st om er rel at io ns hi ps by t ak in g cu st om ers on fis hi ng tri ps to lo cat io ns as far away as Co lo rad o. Tip to n al so to ok cu st om ers ou t fo r m eal s. W he n he le ft Irb y , Tip to n cal le d so m e of hi s Irb y cu st om ers “ [j] us t to le t th em kn ow where I was .” As in si de sa le sm en , G i l b e r t ’s an d Pad ge tt ’s job s li ke wis e en ta il ed bu il di ng an d

m ai nt ai ni ng cu st om er rel at io ns hi ps

. Gil be rt at te st ed th at , du rin g hi s ti m e wit h Irb y , he cam e to kn ow cu st om ers on a p e r s o n a l b a si s. As an ex am pl e, Gil be rt di sc us se d
hi s rel at io ns hi p wit h on e cu s t o mer , l i s ti ng so m e of th e co m pa ni es fo r whi ch th e

cu st om er ha d wor ke d an d de sc rib in g th e na tu re of th e cu st om er’s bu si ne ss

. Pad ge tt al so te st ifi ed th at so m e of hi s Ir by cus to m ers cal le d h im aft er h e wen t to W ho le sa le

an d p l a c e d o r d e rs wit h hi m

. Viewi ng th is ev id en ce in th e li gh t m os t fav or ab le to Irb y , we fin d th at a reas on ab le jury co ul d co nc lu de th at th e no n- co m pe te ag reem en ts

were n eces sa ry

to pro te ct Irb y

ag ai ns t a l os s o f cu st om ers

. Se e And er so n , 47 7 U.S.

at 24 8.

-1 2-The di st ric t co ur t al so co nc lu de d th at th e no n- co m pe t e a g r e e m en ts la ck ed a

reas on ab le ge og rap hi c li m it at io n. In pa rti cu la r, th e co ur t em ph as iz ed th at th e
ag reem en ts l i mi t e d a n em pl oyee’s act iv it ie s “ wit hi n [h is ] te rri to ry , as de fi ne d by [ Ir by ]. ” The co ur t was co nc ern ed th at Irb y co ul d u ni la te ral ly defi ne an em pl oyee’s

te r r i t o r y so as to crea te an un reas on ab le ge og rap hi c li m it at io n. W e do ub t th at th e

no n- co m pe te ag reem en ts pe rm it th e bo un dl es s read in g th at th e di st r i c t co ur t

en vi si on ed

. As we un de rs t a nd th e pl ai n la ng ua ge qu ot ed ab ov e, th e ag reem en ts

m erel y li m it an em

pl oyee’s act iv it ie s wit hi n th e te rri to ry to whi ch Irb y ha d as si gn ed
hi m du rin g h is em

pl oym en t.

W it h th e no n- co m

pe te pr ov is io ns pr op erl y co ns tru ed
, it be co m es ap pa ren t th at th ere is a ge nu in e di sp ut e of m at eri al fact ab ou t whe th er th e no n- co m pe te ag reem en ts ha ve a reas on ab le ge og rap hi c li m it at io n. Se e Adv an ced Env tl

. Recyc li ng Tech s., In c. v. Adv an ced Co nt ro l So lu ti on s, In c. , 2 75 S.W .3d 16 2, 1 72 (Ark . 20 08 ); Ben di ng er , 99 4 S.W .2d at 47 2- 73

. A li m it at io n on an em pl oyee’s act iv i t i e s i n th e tra de area whe re hi s fo rm er em

pl oyer op erat es can be reas on ab le

. Se e All -S ta te Su pp ly

, In c. v. Fis he r , 48 3 S.W .2d 21 0, 21 1- 12 (Ark

. 19 72 ); Ja ra ki v. Ca rd io lo gy Ass oc s. of N.E. Ark., P.A.
, 55 S.W .3d 79 9, 80 4 (Ark

. Ct

. App

. 20 01 ) (“ W he re a ge og rap hi c res tri ct io n is gr eat er th a n t he [em

pl oyer’s] tra de area , th e res tri ct io n is to o br oa d an d th e

co ve na nt no t to co m

pe te is vo id .”). Howev er, th e pa rti es ha ve no t di rect ed us to an y

reco rd ev id en ce ab ou t th e si ze of Irb y ’s tra de area or th e si ze of th e te rri to ry to whi ch Tip to n, Gil be rt, an d Pad ge tt were ass ig ne d. In an y ev en t, we no te th at a reas on ab le fact fin de r co ul d rel y on th e rel at iv el y li m it ed in tru si on th at th e no n- co m pe te
ag reem en ts im

po se d on a fo rm er em

pl oyee’s li ve li ho od to fin d th at th e no n- co m pe te
ag reem en ts ’ ge og rap hi c li m it at io n is reas on ab le

. Se e Free man v. Bro wn Hil le r, In c. , 28 1 S.W .3d 74 9, 75 2, 75 6 (Ark

. Ct

. App

. 20 08 ) (u ph ol di ng no n- co m pe te ag reem en t th at la ck ed a ge og rap hi c li m it at io n bu t on ly li m it ed th e em pl oyee fro m so li ci ti ng b u s i n es s fro m hi s fo rm er em pl oyer’s cu st om ers ); Gir ar d
, 68 5 S.W .2d at 52 8- 2 9 (u ph ol di ng ag re e men t th at la ck ed a ge og rap hi c li m it at io n bu t on ly li m it ed th e

em pl oyee fro m so li ci ti ng or a c c e p t i ng bu si ne ss fro m cu st om ers who se acco un ts he

-1 3-se rv ic ed at th e ti m e of hi s te r mi n a ti on ). Fo r th es e reas on s, we co nc lu de th at a

ge nu in e is su e of m at eri al fact ex is ts ab ou t whe th er th e no n- co m pe te ag reem en ts ha ve

a rea so na bl e g eo gr ap hi c li m it at io n.

3. Civ il Cons pi ra cy

Irb y ne xt arg ue s th at th e di st ric t co ur t erre d in gr an ti ng su m m ary jud gm en t on it s cl ai m th at Bl um fel de r an d W ho le sa le co ns pi red wit h Tip to n to vi ol at e hi s fid uc ia ry du ty to Irb y

. Und er Ark an sa s la w, Irb y “ m us t sh ow a co m

bi na ti on of two or m or e
pe rs on s to acco m

pl is h a pu rp os e th at is un la wfu l or op pr es si ve or to acco m pl is h so m e
pu rp os e, no t in it se lf un la wfu l, op pr es si ve or im m or al
, by un la wfu l, o p p r e s s iv e or im m or al m ean s, to th e in

jury of an ot he r.” Dod

so n v. All st at e In s. Co

. , 47 S.W .3d 86 6,
87 6 (Ark

. 2 0 0 1 ). The di st ric t co ur t gr an te d su m m ary jud gm en t on Irb y ’s ci vi lco ns pi racy cl ai m be cau se th e co ur t vi ewed it as de r i v a t iv e of Irb y ’s un su cces sf ul cl ai m fo r br each of fid uc ia ry du ty. The de fen da nt s rei te rat e th is rat io na le on ap pe al
,
as se rti ng th at “ qu ib bl es ov er de ta il s ab ou t ph on e cal ls
, te xt m es sa ge s, or di nn er

m eet in gs ” are in su f

f ic ie nt to rev ers e th e co ur t’s gr an t of su m m ary jud gm en t. Howev er, as di sc us se d in Part II.A.1
, Tip to n’s act of co or di na ti ng wit h Bl um fel de r wha t ap pe ars to be a recr

ui ti ng m eet in g fo r Irb y em pl oyees as well as Tip to n’s ot he r

co m m un ic at io ns wit h Bl um fel de r, Gil be rt, an d Pad ge tt are su ffi ci en t to ge ne rat e a
ge nu in e di sp ut e of m at eri al fact ab ou t whe th er Tip to n br e ach ed hi s fid uc ia ry du ty. Co ns e q u e nt ly, th e di st ric t co ur t’s rat io na le fo r di sm is si ng Irb y ’s ci vi l-c on sp ira cy cl ai m no lo ng er ho ld s, an d th e gr an t of s um m ary jud gm en t on th is ba si s was in ap pr op ria te

.

4. To rti ou s I nter fere nce w ith a Co ntra ct

Irb y al so arg u e s th at gr an ti ng su m m ary jud gm en t on it s cl ai m ag ai ns t W ho le sa le an d Bl um fel de r fo r to rti ou s in te rfer en ce wit h a co nt ract w as inapp ro pr ia te

. To s uc ceed on th is cla im , Irb y m us t s ho w:

-1 4-(1 ) t h e ex is te nc e of a va li d co nt ract ua l rel at io ns hi p or a bu si ne ss

ex pe ct an cy ; (2 ) kn owl ed ge of th e rel at io ns hi p or ex pe ct an cy on th e pa rt of th e in te rfer in g pa rty; (3 ) in te nt io na l in te rfer en ce in du ci ng or cau si ng

a br each or te rm in at io n of th e rel at io ns h i p or ex pe ct an cy ; an d (4 )

res ul ta nt da m ag e to th e pa rty who se rel at io ns hi p or ex pe ct an cy ha s be en di sr up te d.

K.C. Pro ps

. of N.W

. Ark., In c. v. Lo wel l In v. Par tn er s, LLC
, 28 0 S.W .3d 1, 11 (Ark

. 20 08 ). Rea so ni ng th at th is cl ai m de pe nd s on a su cces sf ul cl ai m fo r br each of th e no nco m pe te ag reem en ts , th e di st ric t co ur t gr an te d su m m ary jud gm en t to Bl um fel de r an d
W ho le sa le

. Howev er, as di sc us se d in Part II.A.2, ge nu in e di sp ut es of m at eri a l fact

rem ai n on Irb y ’s cl ai m fo r br each of co nt ract , th ereb y un de rm in in g th e di st ric t co ur t’s

reas on for di sm is si ng th is cla im

.

As an al te rn at iv e ba si s fo r affi rm in g th e di st ric t c o u rt’s gr an t of su m m ary jud gm en t, Bl um fel de r a nd W ho le sa le in vo ke Ark an sa s la w’ s reco gn it io n of a

co m pe ti to r’s pr iv il eg e to co m

pe te

. Se e Off

ic e Mac hi ne s, In c. v. Mit ch el l
, 23 4 S.W .3d
90 6, 90 8 (Ark

. C t

. App

. 20 06 ) (“ [T]he de fen da nt wil l no t be li ab le [fo r to rti ou s in te rfer en ce wit h a co nt ract ] if he sh ows th at hi s in te r f e r e n c e w a s pr iv il eg ed .”). In th e co nt ex t of a cl ai m fo r to rti ou s in te rfer en ce wit h a co nt ract , Ark an sa s co ur ts ha ve he ld th at hi rin g a co m

pe ti to r’s em

pl oyee is pa rt of th is pr iv il eg e so lo ng as hi rin g hi m

was no t a br each of a no n- co m pe te ag reem en t. W

. Memp hi s Ado le sc en t Resi de nt ia l,
LLC v. Co mpt on , 37 4 S.W .3d 92 2, 92 8 (Ark

. Ct

. App

. 20 10 ); Off ic e Mac hi ne s , 23 4
S.W .3d at 90 9. If Bl um fel de r an d W ho le sa le m er e l y r e c ru it ed an d hi red Tip to n, G i lb ert , an d Pad ge tt , th en su ch co nd uc t wou ld co ns ti tu te pr iv il eg ed co m pe ti t i o n be cau se , a s di sc us se d a bo ve , t he no n- co m pe te ag reem en ts al lo wed Tip to n, Gil be rt,

an d Pad ge tt to wor k an y

whe re so l on g as th ey di d no t co m pe te wit h Irb y

. Se e id

. Howev er, recr ui ti ng an d hi rin g Tip to n, Gil be rt, an d Pad ge tt so th at th ey wou ld so li ci t

o r a c c ep t bu si ne ss fro m Irb y cu st om ers in th ei r fo rm er te rri to ry wit hi n on e y ear in vi ol at io n of th ei r no n- co m pe te ag reem en ts fal ls ou ts id e of th e pr iv il eg e to co m pe te

. Se e id

.

-1 5-The ev id en ce in th e reco rd is su ffi ci en t to crea te a ge nu in e di sp ut e of m at eri al

fact on th is is su e. Bl um fel de r an d W ho le sa le hi red Tip to n, Gil be rt, a n d P a d ge tt to

wor k for W

ho le sa le in th e sa m e to wn where th ey wor ke d for Irby. Mo reo ve r, th ere is no di sp ut e th at Irb y an d W ho le sa le were co m pe ti to rs

. Tip to n ad m it te d th at , wit hi n

on e y ear of be co m in g a Wh o le sa le em pl oyee, h e cal le d so m e of hi s Irb y cu st om ers

“ [j] us t to le t th em kn ow whe re I was .” G i l b e rt an d Pad ge tt si m il arl y te st ifi ed th at , wit hi n on e y ear of be co m in g Wh o l es al e em pl oyees, th ey di d bu si ne ss wit h th ei r fo rm er Irb y cu st om ers

. Thi s ev id en ce, vi ewed m os t fav or ab l y t o Irb y , crea te s a
ge nu in e di sp ut e of m at eri al fact ab ou t whet he r Bl um fel de r an d W ho le sa le recr ui te d

an d hi red Tip to n, Gil be rt, an d Pad ge tt so th at th ey wou ld so li ci t or acce pt b u s i n e ss fro m Irb y cu st om ers in th ei r fo rm er te rri to ry wit hi n on e y ear in vi ol at io n of th ei r no nco m pe te ag reem en ts

.

B.

The di st ric t co ur t award ed t h e de fen da nt s m or e th an $2 00 ,00 0 in at to rn ey s’ fees an d co st s un de r Ark

. Co de Ann

. § 16 -2 2- 30 8. Thi s pr ov is io n st at es th at “ [i]n an y ci vi l acti on to reco ve r

. . . for

. . . br each of c on tra ct

. . . th e pr ev ai li ng pa rty m ay be al lo wed a reas on ab le at to rn ey ’s fee to be as se ss ed by th e co ur t an d c o l l e c te d as

co st s.” Id

. Bec au se of ou r di sp os it io n of th is ap pe al
, t h e de fen da nt s are no lo ng er
pr ev ai li ng pa rti es un de r th e st at ut e. Se e Ben di ng er , 99 4 S .W .2d at 4 75 ; Arms tr on g Remod el in g & Co ns tr
., LLC v. Ca rd en as , 41 7 S.W .3d 74 8, 75 7 (Ark

. Ct

. App

. 20 12 ).
W e th eref

or e v acat e th e d is tri ct co ur t’s awar d o f at to rn ey s’ fees an d c os ts

.

II I. Con cl us io n

Fo r th e reas on s de sc rib ed ab ov e, we rev ers e th e di st ric t co ur t’s g r a n t of

su m m ary jud gm en t on Irb y ’s cl ai m s fo r br each of fid uc ia ry du ty, br each of co nt ract , ci vi l co ns pi racy, an d in te nt io na l in te rfer e nc e wit h a co nt ract ; va cat e th e di st ric t

-1 6-co ur t’s award of at to rn ey s’ fees an d co st s; an d rem an d fo r fu r t h e r p r o ceed in gs

co ns is te nt wit h t hi s o pi ni on

.

__ __ __ __ __ __ __ __ __ __ __ __ __ __ __

-1 7-