A. B. Dick Co. v. American Pro-Tech

514 N.E.2d 45, 159 Ill. App. 3d 786, 112 Ill. Dec. 649, 2 I.E.R. Cas. (BNA) 600, 1987 Ill. App. LEXIS 2838
CourtAppellate Court of Illinois
DecidedSeptember 24, 1987
Docket86-2066
StatusPublished
Cited by35 cases

This text of 514 N.E.2d 45 (A. B. Dick Co. v. American Pro-Tech) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
A. B. Dick Co. v. American Pro-Tech, 514 N.E.2d 45, 159 Ill. App. 3d 786, 112 Ill. Dec. 649, 2 I.E.R. Cas. (BNA) 600, 1987 Ill. App. LEXIS 2838 (Ill. Ct. App. 1987).

Opinions

JUSTICE JOHNSON

delivered the opinion of the court:

Plaintiff, the A. B. Dick Company, brought this action against defendants in the circuit court of Cook County. Defendants are three of plaintiff’s former employees, Scott S. Regula, Joseph W. Secedi, and Mark Zoromski, and the competing company that they founded, American Professional Services, Inc., also known as American Pro-Tech. The trial court issued a temporary restraining order (TRO) enjoining Zoromski from violating his noncompetition agreement with plaintiff. The trial court subsequently dissolved the TRO and denied plaintiff’s motion for a preliminary injunction.

We reverse and remand.

The record shows that plaintiff provides maintenance and repair services for copiers, microfiche equipment, and offset printing equipment. Plaintiff also manufactures and sells such equipment. Plaintiff sells its maintenance and repair services through branch offices in geographic territories.

Mark Dipple, the manager of plaintiff’s Chicago suburban branch office, and defendant Zoromski testified at the preliminary injunction hearing. Dipple testified that his branch has executed between 800 and 1,000 verified preventive maintenance agreements with its customers. A maintenance agreement provides that plaintiff, in exchange for a fixed payment, will service the customer’s equipment as needed for the term of the agreement and also will perform a specified number of preventive maintenance calls on the equipment. The agreement is for a one-year term and automatically renews from year to year unless the customer cancels it. Dipple testified that as a result, many of plaintiff’s customers are long-standing, having had maintenance agreements from the time that they first bought copiers or duplicating equipment.

Plaintiff services its customers not only through maintenance agreements, but also on a time and material basis. Dipple testified that the Chicago suburban branch received between 35% and 40% of its total revenue from servicing customers under both maintenance agreements and on a time and material basis.

The record further shows that plaintiff employed defendant Zoromski as a “technical representative” at its Chicago suburban branch from mid-June 1981 to March 1986. Dipple testified that technical representatives perform all of the maintenance and service for plaintiff’s maintenance agreement customers and its time and material customers. They sell maintenance agreements to customers and convert time and material customers to maintenance agreement customers. Dipple further testified that technical representatives are the primary employees responsible for maintaining goodwill with plaintiff’s customers.

Zoromski testified that he had no experience in servicing or marketing copiers or other duplicating equipment prior to his employment with plaintiff. As a result of his training and experience with plaintiff, Zoromski achieved the second highest level of technical representative, requiring of him a specified amount of training, experience, and certification in certain of plaintiff’s products.

The record shows that plaintiff requires all of its technical representatives to sign noncompetition agreements. Dipple testified that these covenants protect plaintiff from unfair competitive disadvantages caused by former employees using its confidential information to solicit customers away from it and also protect plaintiff’s longstanding customer relationships. Plaintiff required Zoromski to sign a noncompetition agreement. The restrictive covenant obligated Zoromski not to compete with plaintiff “in equipment repair and maintenance activity” during his employment and one year thereafter in the Chicago suburban branch territory. Zoromski testified that he understood the covenant when he voluntarily signed it.

Zoromski testified that he voluntarily left plaintiff on March 13, 1986. He subsequently joined American Pro-Tech, a competitor of plaintiff. Zoromski further testified that he solicited plaintiff’s customers for whom he was responsible and to whom he was introduced through his employment with plaintiff.

Zoromski additionally testified that he knew that his employment at American Pro-Tech violated his noncompetition agreement with plaintiff. He further testified that he hoped, however, that plaintiff would not take any action to enforce the covenant. The record shows that plaintiff mailed to Zoromski a letter dated April 23, 1986, demanding that he abide by the covenant or else it would seek enforcement in court. Zoromski testified that he did not respond to plaintiff’s letter and hoped that plaintiff would take no further action on the covenant.

According to Zoromski, at least three of plaintiff’s customers whom he solicited cancelled their maintenance agreements with plaintiff and gave their business to American Pro-Tech. Dipple testified that this caused plaintiff an immediate loss of revenue. He further testified that Zoromski took confidential information and impaired the relationship between plaintiff and its customers. Dipple further testified that plaintiff might never know which time and material customers Zoromski solicited away from it. For these reasons, Dipple explained, Zoromski’s violation of the covenant injured plaintiff in ways that one cannot measure in money terms.

Plaintiff filed its complaint on June 10, 1986. On the next day, plaintiff sought a TRO against Zoromski, enjoining him from violating the restrictive covenant. The trial court issued the TRO pending a preliminary injunction hearing, which it held on July 1, 1986. At the close of plaintiff’s case, the trial court denied plaintiff’s motion for a preliminary injunction and dissolved the TRO. The trial court expressly found that Zoromski knowingly signed the covenant and that the covenant’s time and geographic area limitations were well-defined and reasonable. The trial court also found, however, that plaintiff did not keep its customer information, in fact, confidential. The trial court lastly found that plaintiff did not produce evidence of irreparable injury; plaintiff, rather, only surmised that it was irreparably injured because it lost customers.

Plaintiff appeals pursuant to Supreme Court Rule 307(a) (87 Illl. 2d R. 307(a)). Plaintiff contends that: (1) the trial court’s finding that it did not keep its customer information confidential was irrelevant, or alternately, against the manifest weight of the evidence; (2) the trial court ignored plaintiff’s customer relations as a separate, protectable interest justifying a preliminary injunction; and (3) the trial court’s finding that plaintiff did not produce evidence of irreparable injury was against the manifest weight of the evidence.

A party who seeks a preliminary injunction must establish that a certain and clearly ascertained right needs protection, irreparable injury will occur without the injunction, no adequate remedy at law exists, and that there is a probability of success on the merits. (McRand, Inc. v. van Beelen (1985), 138 Ill. App. 3d 1045, 1050, 486 N.E.2d 1306, 1310; Morrison Metalweld Process Corp. v. Valent (1981), 97 Ill. App. 3d 373, 375, 422 N.E.2d 1034

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Reliable Fire Equipment Co. v. Arredondo
2011 IL 111871 (Illinois Supreme Court, 2011)
Siemens Building Technologies, Inc. v. Camacho
168 F. Supp. 2d 425 (E.D. Pennsylvania, 2001)
Midwest Television, Inc. v. Oloffson
699 N.E.2d 230 (Appellate Court of Illinois, 1998)
Midwest Television v. Oloffson
Appellate Court of Illinois, 1998
Curtis 1000, Inc. v. Suess
843 F. Supp. 441 (C.D. Illinois, 1994)
Lyle R. Jager Agency, Inc. v. Steward
625 N.E.2d 397 (Appellate Court of Illinois, 1993)
Eldridge v. Eldridge
617 N.E.2d 57 (Appellate Court of Illinois, 1993)
People v. Hawkins
611 N.E.2d 1069 (Appellate Court of Illinois, 1993)
Howard Johnson & Co. v. Feinstein
609 N.E.2d 930 (Appellate Court of Illinois, 1993)
L S B Z, Inc. v. Brokis
603 N.E.2d 1240 (Appellate Court of Illinois, 1992)
Rapp Insurance Agency, Inc. v. Baldree
597 N.E.2d 936 (Appellate Court of Illinois, 1992)
Office Mates 5, North Shore, Inc. v. Hazen
599 N.E.2d 1072 (Appellate Court of Illinois, 1992)
Office Electronics, Inc. v. Adell
593 N.E.2d 732 (Appellate Court of Illinois, 1992)
Arpac Corp. v. Murray
589 N.E.2d 640 (Appellate Court of Illinois, 1992)
PCx Corp. v. Ross
568 N.E.2d 311 (Appellate Court of Illinois, 1991)
Millard Maintenance Service Co. v. Bernero
566 N.E.2d 379 (Appellate Court of Illinois, 1990)
Agrimerica, Inc. v. Mathes
557 N.E.2d 357 (Appellate Court of Illinois, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
514 N.E.2d 45, 159 Ill. App. 3d 786, 112 Ill. Dec. 649, 2 I.E.R. Cas. (BNA) 600, 1987 Ill. App. LEXIS 2838, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-b-dick-co-v-american-pro-tech-illappct-1987.