The Total Garage Store, LLC. v. Nicholas C. Moody

This appeal concerns a noncompetition agreement. The Total Garage Store, LLC (“TGS”) sued former employee Nicholas C. Moody (“Moody”) in the Chancery Court for Montgomery County (“the Trial Court”). TGS alleged that Moody violated his noncompetition agreement (“the Agreement”). At the end of a hearing on TGS’s motion for a temporary injunction held 35 days after suit was filed, the Trial Court invoked Tenn. R. Civ. P. 65.04(7) to declare that the hearing was on the merits of the case, not just the injunction. The Trial Court found the Agreement enforceable and entered an injunction order. Later, TGS filed a motion for contempt against Moody alleging that he violated the order. After a hearing, the Trial Court found Moody guilty of six counts of criminal contempt. The Trial Court also awarded damages to TGS. Moody appeals. Because the record does not reflect that Moody received adequate notice that the injunction hearing also would be on the merits, we vacate the Trial Court’s judgment as it pertains to Moody’s alleged violation of the Agreement. However, this does not and did not entitle Moody to ignore the temporary injunction, and we affirm the Trial Court in its finding Moody guilty of criminal contempt. We therefore affirm, in part, and vacate, in part, the Trial Court’s judgment, and remand for further proceedings consistent with this Opinion.