A-Tech Computer Services, Inc. v. Soo Hoo

627 N.E.2d 21, 254 Ill. App. 3d 392, 193 Ill. Dec. 862, 1993 Ill. App. LEXIS 1081
CourtAppellate Court of Illinois
DecidedJuly 16, 1993
Docket1-92-0559
StatusPublished
Cited by20 cases

This text of 627 N.E.2d 21 (A-Tech Computer Services, Inc. v. Soo Hoo) 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-Tech Computer Services, Inc. v. Soo Hoo, 627 N.E.2d 21, 254 Ill. App. 3d 392, 193 Ill. Dec. 862, 1993 Ill. App. LEXIS 1081 (Ill. Ct. App. 1993).

Opinion

JUSTICE COUSINS

delivered the opinion of the court:

This is an interlocutory appeal taken pursuant to Supreme Court Rule 307(a)(1) (134 Ill. 2d R. 307(a)(1)). The circuit court entered a preliminary injunction prohibiting defendants, Wayne Soo Hoo, d/b/a Zoetec Computer Services, Inc., and S.K.I. Computers, Inc. (defendant), from soliciting clients belonging to plaintiff, A-Tech Computer Services, Inc. (plaintiff).

The issues presented for review are: (1) whether the trial court erred in granting a preliminary injunction in plaintiffs favor and, consequently, erred in denying defendant’s motion for directed finding; (2) whether the trial court erred in reopening the evidence after plaintiff rested; and (3) whether the trial court erred in refusing defendant permission to introduce evidence explaining alleged ambiguities in the nonsolicitation agreement, and in barring testimony of defendant’s former attorney.

We affirm.

Background

Plaintiff filed a complaint against defendant for injunctive relief and damages. The complaint was pursuant to a nonsolicitation agreement dated May 31, 1990, between the parties. The pertinent part of said agreement read as follows:

“Covenant Not to Solicit. Seller and the Company agree that the Company’s business depended, to a considerable extent, on the unique background and individual efforts of Seller. Accordingly, and in consideration of the Company’s purchase of the Seller’s shares of stock and payment hereunder, Seller covenants and agrees that he will not for a period of two (2) years from the 26th of March, 1990, engage directly or indirectly in the solicitation of any client of Company (either as principal, agent or consultant) or through any corporation, firm or organization in which he may be an officer, director, employee, shareholder, partner, member of otherwise affiliated. The solicitation precluded by this Agreement is of any present client of A-TECH COMPUTER SERVICE, INC., for any computer related business or employment for services for whom Company was actively engaged in business with as of March 26, 1990. Further, Seller is only restricted from soliciting said clients for business that was being actively performed for that particular client as of March 26, 1990. Further, Seller will not disclose or appropriate to his own use or the use of any other person or entity any trade secret or confidential information of, or confidential knowledge pertaining in any way to, the business of Company or any subsidiary of Company.” (Emphasis added.)

This agreement was part of the parties’ capital stock repurchase agreement whereby defendant sold his interest to plaintiff.

On March 19, 1991, plaintiff filed a motion for temporary restraining order alleging that defendant violated the nonsolicitation agreement by soliciting some of plaintiff’s clients.

On March 27, 1991, the trial court entered a temporary restraining order against defendant to preserve the status quo and to restrict defendant pursuant to the nonsolicitation agreement. On April 25, 1991, a hearing was held on plaintiff’s motion for preliminary injunction.

Defendant testified that he sent advertisement letters to an unknown number of plaintiff’s clients. Six witnesses who were/are plaintiff’s clients testified to the following.

Linda Burke, of the Matthews Company, testified that since at least 1986, her company used plaintiff for all of its computer needs and that her company was currently under a two-year-maintenance contract with plaintiff. She further testified that defendant went by her office and offered to provide maintenance of the company’s computer system or sell some equipment. Ms. Burke testified that the services or sales offered by defendant were exactly those which plaintiff had provided for her company since 1986.

Omar Mohammed, of Northwestern Business College, testified that his employer had used plaintiff for all of its computer needs since 1987. He further testified that the defendant telephoned him on two occasions attempting to sell him computer equipment. Mr. Mohammed testified that defendant tried to sell him what was exactly the type of computer equipment which he purchased and had maintained under the contract by plaintiff exclusively since 1987.

Donn Ellis, of the Aurora Sanitary District, testified that his employer had used plaintiff for its Texas Instruments computer hardware purchases and maintenance exclusively from April 1986 through April 1990. He further testified that he received an advertisement letter from defendant dated July 5, 1990. Mr. Ellis further stated that since receiving the letter, he had paid defendant for maintenance services and has a contract with defendant pending budget approval. Mr. Ellis testified that he would not have requested defendant to perform those services had he not received his solicitation.

Charlene Thompson, of R.W. Graybill, testified that, for many years, plaintiff has provided all of her company’s computer services, including hardware and maintenance. She further testified that she received two advertisement letters from defendant with attached literature on buying, selling, and repairing the same equipment that plaintiff supplied.

Karen Swierenga, of Crane Construction Company, testified that plaintiff had provided all of her company’s Texas Instruments hardware and maintenance needs, pursuant to contract, since 1986. She further testified that defendant sent her a letter in regard to the services offered and that letter specifically solicited hardware sales and maintenance for the Texas Instruments system.

Craig Samuelson, of K-5 Construction, testified that plaintiff had been providing his company’s Texas Instruments computer hardware and maintenance under contract continuously since at least March 1988. He further testified that defendant sent him some advertisement letters, called him in December 1990, and inquired if defendant could provide his company with assistance in the purchase or maintenance of existing equipment.

During the course of the hearing, the trial court stated:

“The phrase in quotes, further seller is only restricted from soliciting said clients for business that was being actively performed for that particular client as of March 26, 1990 end quote was not meant to permit [sic] the defendants from engaging in computer related business.
Therefore the covenant precluded all activities which the defendant engaged in as shown by the plaintiff’s evidence.
To rule otherwise would render the covenant valueless and unenforceable because of the interrelationship between various computer business services. The intent of the parties was not as such.
The term client is to be defined as of March 26, 1990 and would include those under contract, verbal or written, as of the date and those persons who had had a continuous relationship with the plaintiff for a reasonable period of time preceding March 26, 1990.

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Bluebook (online)
627 N.E.2d 21, 254 Ill. App. 3d 392, 193 Ill. Dec. 862, 1993 Ill. App. LEXIS 1081, Counsel Stack Legal Research, https://law.counselstack.com/opinion/a-tech-computer-services-inc-v-soo-hoo-illappct-1993.