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Stewart v. Shelby Tissue, Inc.

United States District Court for the Western District of Tennessee
189 F.R.D. 357 (1999)

Written by DeAnna Swearingen, LLM

Facts

In November 1997, Dennis Stewart (plaintiff) signed an employment contract with Shelby Tissue, Inc. (Shelby) (defendant), which was a subsidiary of General Electric Capital Corporation (GE) (defendant). Stewart resigned on January 8, 1999 and sued the defendants on the same day. Stewart began working for Kruger, Inc. and Global Tissue, LLC (collectively Kruger). On January 22, 1999, the defendants sent Kruger a letter asserting that its employment of Stewart violated a noncompetition clause contained in Stewart’s contract. The defendants sent a similar letter to Stewart. Kruger fired Stewart in March. The defendants filed a motion to dismiss, which was denied as to most claims. On April 26, without asking the court’s permission, Stewart filed an amended complaint, adding claims of unlawful inducement of breach of contract and tortious interference with contractual relations against the defendants. At the time, the defendants had not yet filed an answer. On May 6, Stewart moved for leave to file the extra counts, and the defendants objected.

Rule of Law

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Issue

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Holding and Reasoning (Donald, J.)

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A "yes" or "no" answer to the question framed in the issue section;
A summary of the majority or plurality opinion, using the CREAC method; and
The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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