PITTSBURGH – A local construction company felt its work on a parking garage to be built as part of Pittsburgh International Airport’s $1.4 billion modernization program would be in jeopardy due to its competitor trying to hire one of its high-level former employees, and reached a settlement in the matter after a brief litigation.
Carl Walker Construction, Inc. of Pittsburgh filed suit in the Allegheny County Court of Common Pleas on Nov. 22 versus Marc Palmieri, of Canonsburg.
Palmieri resigned from Carl Walker Construction, Inc. on Nov. 22, setting his last day of employment as Dec. 3 and had planned to join Mascaro Construction, a rival competitor to the plaintiff, in a similar high-level role.
“The timing of Palmieri’s departure is particularly problematic, as bids are dye for the construction of a parking garage in connection with the $1.4 billion Pittsburgh International Airport Terminal Modernization Program on Dec. 1. The TMP will overhaul and modernize Pittsburgh International Airport’s terminal and the plans include the construction of a 3,300-space parking garage, which is the project that will receive competing bids from Walker and Mascaro. Upon information and belief, Walker and Mascaro may be the only bidders for the project,” the suit says.
“Palmieri was a high-level, highly compensated employee of Walker and was instrumental in the preparation of Walker’s bid on the project. Palmieri had access to extremely sensitive trade secrets developed by Walker that, if shared with Mascaro prior to his employment with them, would give Mascaro an entirely unfair advantage and effectively sabotage Walker’s bid on the project. Additionally, upon information and belief, numerous bidding deadlines for the project have been extended, and the parking garage project bidding deadline may be extended as well.”
The plaintiff continued that Section VIII of the defendant’s employment agreement spanning all of the year 2021 contained a no-compete clause, which forbid Palmieri from working for a rival company doing similar work not just during the term of the agreement, but for 18 months after any termination of the agreement, from working for any company the plaintiff did business with in the prior two years or for any company conducting similar work within a 100-mile radius of Pittsburgh.
As Mascaro Construction is a rival company to Carl Walker Construction, Inc. and engaged in similar work, the plaintiff feels that the no-compete clause should prohibit Palmieri from working for them.
The plaintiff added that to disallow an injunction preventing Palmieri from working for Mascaro Construction would cause it to suffer irreparable harm in the form of lost profits and employee layoffs.
For a lone count of injunctive relief, the plaintiff sought a preliminary injunction to be issued with immediate force and effect, prohibiting the defendant from soliciting and/or gaining employment with Mascaro and further prohibiting the defendant from sharing valuable and sensitive trade secrets with Mascaro.
Allegheny County Court of Common Pleas Judge Michael A. DellaVecchia granted the plaintiff’s accompanying emergency motion for preliminary injunction on Nov. 24.
UPDATE
Defense counsel Jonathan R. McCloskey provided a statement regarding the later disposition of the case on Dec. 21.
"This statement is being provided by Marc Palmieri in an effort to clarify the article written on Dec. 6, 2021 about his employment status. Mr. Palmieri was an employee of Carl Walker Construction Inc. (“CWC”) and voluntarily decided to resign his position with CWC and begin work as a project manager for Mascaro Construction Co. (“Mascaro”). CWC commenced litigation against Mr. Palmieri, seeking an injunction to prevent him from joining Mascaro. Attorney Jonathan McCloskey of Meyer Darragh PLLC represented and defended Mr. Palmieri. At an emergency injunction hearing on Nov. 24, 2021, there was no evidence presented that Mr. Palmieri had actually shared any trade secrets or confidential information with Mascaro or that he had planned to do so," McCloskey said.
"Accordingly, by Order of Court, Judge Michael Della Vecchia allowed Mr. Palmieri to begin his employment with Mascaro, subject to the caveat that no sensitive trade secrets would be shared. Judge Della Vecchia also set a future date for a full injunction hearing. Prior to the permanent injunction hearing date, Palmieri and CWC entered into a confidential settlement agreement that will continue to allow Palmieri to legally work for Mascaro, subject to other terms and conditions described in that confidential document. The parties have resolved this matter and will have no further comment."
The plaintiff was represented by Daniel P. Lynch and David C. Weber of The Lynch Law Group, in Cranberry Township.
The defendant was represented by Jonathan R. McCloskey of Meyer Darragh Buckler Bebenek & Eck, in Pittsburgh.
Allegheny County Court of Common Pleas case GD-21-014214
From the Pennsylvania Record: Reach Courts Reporter Nicholas Malfitano at nick.malfitano@therecordinc.com