Aon Corp. v. Utley

863 N.E.2d 701, 309 Ill. Dec. 69, 371 Ill. App. 3d 562, 25 I.E.R. Cas. (BNA) 762, 2006 Ill. App. LEXIS 1021
CourtAppellate Court of Illinois
DecidedNovember 9, 2006
Docket1-05-2824
StatusPublished
Cited by10 cases

This text of 863 N.E.2d 701 (Aon Corp. v. Utley) 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
Aon Corp. v. Utley, 863 N.E.2d 701, 309 Ill. Dec. 69, 371 Ill. App. 3d 562, 25 I.E.R. Cas. (BNA) 762, 2006 Ill. App. LEXIS 1021 (Ill. Ct. App. 2006).

Opinion

PRESIDING JUSTICE QUINN

delivered the opinion of the court: Plaintiffs Aon Corporation (Aon) and Aon Consulting, Inc. (Aon Consulting), appeal from the circuit court’s judgment granting defendant Andrea Utley’s motion to dismiss pursuant to section 2 — 619 of the Illinois Code of Civil Procedure (735 ILCS 5/2 — 619 (West 2004)). On appeal, plaintiffs argue that the circuit court erroneously determined that it lacked personal jurisdiction over defendant and that, if it had jurisdiction, it would have granted a motion for forum non conveniens.

On January 15, 1997, defendant, a resident of California, became an employee of Aon Consulting, a subsidiary of Aon, when Aon Consulting bought defendant’s then employer, Alexander & Alexander Services, Inc. Defendant served as senior vice president of Aon Consulting and provided insurance consulting services to its clients. Aon and Aon Consulting are both incorporated in Delaware and headquartered in Illinois.

On May 27, 1999, defendant signed a stock option agreement with Aon which provided that she would receive an option to buy 1,000 shares of Aon stock at $65.1563 per share. In exchange, defendant agreed to certain conditions, including covenants not to solicit Aon clients, not to enter into a business relationship with Aon clients, and not to hire Aon employees for two years should she leave the company. The covenant not to solicit stated:

“The Employee hereby covenants and agrees that, except with the prior written consent of Aon, the Employee will not for a period of two (2) years after the end of employment compete directly or indirectly in any way with the business of the Company. 1 For the purposes of this Agreement, ‘compete directly or indirectly in any way with the business of the Company’ means to enter into or attempt to enter into (on Employee’s own behalf or on behalf of any other person or entity) any business relationship of the same type or kind as the business relationship which exists between the Company and its clients or customers to provide services related to the business of the Company for any individual, partnership, corporation, association or other entity who or which was a client or customer for whom the Employee was the producer or on whose account Employee worked or became familiar with during the twenty-four (24) months prior to the end of employment.”

The agreement further provided that due to the unique character of defendant’s services to Aon, any breach by defendant would entitle Aon to injunctive relief. Other notable clauses in the agreement concerned its modification and the governing law. The agreement provided that it could not be “amended, altered or modified without the prior written consent of both parties and such instrument must acknowledge that it is an amendment or modification of this Agreement.” In addition, the agreement contained a clause captioned “Governing Law and Choice of Forum,” which stated:

“The validity, interpretation, construction, performance, enforcement and remedies of or relating to this Agreement, and the rights and obligations of the parties hereunder, shall be governed by and construed in accordance with the substantive laws of the State of Illinois, without regard to the conflict of law principles, rules or statutes of any jurisdiction. Any and every legal proceeding arising out of or in connection with this Agreement shall be brought in the Circuit Court of Cook County of the State of Illinois, each party hereby consenting to the exclusive jurisdiction of said court.” 2

Defendant continued her employment at Aon Consulting, and on April 20, 2001, entered into a nonsolicitation agreement with Aon Consulting, which was referenced as “the Company” in the agreement. The agreement allowed defendant to purchase shares of Aon Consulting’s parent company Aon. In exchange, defendant again agreed to covenants not to solicit and not to hire. The new covenant not to solicit provided in pertinent part:

“The Employee hereby covenants and agrees that, except with the prior written consent of the Company, the Employee will not, for a period of two (2) years after the end of employment, compete directly or indirectly in any way with the Business. For the purposes of this Agreement, ‘compete directly or indirectly in any way with the Business’ means to enter into or attempt to enter into (on Employee’s own behalf or on behalf of any other person or entity) any business relationship of the same type or kind as the business relationship which exists between Aon Group and its clients or customers to provide services related to the Business for any individual, partnership, corporation, association or other entity who or which was a client or customer for whom the Employee worked or became familiar with during the twenty-four (24) months prior to the end of employment. ‘Client’ or ‘customer’ means any person or entity Usted on the books of Aon Group as such.”

The agreement also provided that Aon Consulting would be entitled to injunctive relief for any breach by defendant. In addition, the agreement contained a clause captioned “Governing Law and Choice of Forum.” 3 That provision stated:

“The validity, interpretation, construction, performance, enforcement and remedies of or relating to this Agreement, and the rights and obUgations of the parties hereunder, shall be governed by and constructed in accordance with the substantive laws of the Employee’s state of residence on the Effective Date, without regard to the conflict of law principles, rules or statutes of any jurisdiction.”

On June 4, 2001, Patrick G. Ryan, chairman and chief executive officer of Aon, sent defendant a letter in which he informed her that the organization and compensation committee of the board of directors had approved the grant of stock option rights to her under the 2001 agreement not to solicit. The letter concluded, “Your options— both those granted in 2001, and those granted before — will be adjusted to preserve their economic value. The details of this adjustment are being developed and will be shared with you later this year.”

On March 29, 2005, plaintiffs filed a complaint in the circuit court of Cook County, which alleged that defendant breached the 1999 stock option agreement. The complaint stated that on October 11, 2004, defendant resigned from Aon Consulting to join another insurance consulting company, ABD Insurance (ABD). Within weeks of her employment at ABD, defendant allegedly entered into consulting relationships with two of Aon Consulting’s clients. Shortly thereafter, defendant entered into a brokerage relationship through ABD with another Aon Consulting client. Plaintiffs claimed that they lost significant business and suffered substantial damages due to defendant’s actions. Plaintiffs complaint did not assert any breach of the 2001 nonsolicitation agreement.

In response, defendant filed a motion to dismiss plaintiffs’ complaint pursuant to section 2 — 619 of the Illinois Code of Civil Procedure (Code) (735 ILCS 5/2 — 619 (West 2004)).

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Cite This Page — Counsel Stack

Bluebook (online)
863 N.E.2d 701, 309 Ill. Dec. 69, 371 Ill. App. 3d 562, 25 I.E.R. Cas. (BNA) 762, 2006 Ill. App. LEXIS 1021, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aon-corp-v-utley-illappct-2006.