Arthur Young & Co. v. Bremer

554 N.E.2d 671, 197 Ill. App. 3d 30, 143 Ill. Dec. 736, 1990 Ill. App. LEXIS 533
CourtAppellate Court of Illinois
DecidedApril 20, 1990
Docket1-89-0748
StatusPublished
Cited by42 cases

This text of 554 N.E.2d 671 (Arthur Young & Co. v. Bremer) 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
Arthur Young & Co. v. Bremer, 554 N.E.2d 671, 197 Ill. App. 3d 30, 143 Ill. Dec. 736, 1990 Ill. App. LEXIS 533 (Ill. Ct. App. 1990).

Opinion

JUSTICE McNAMARA

delivered the opinion of the court:

This appeal arises out of an action for declaratory and injunctive relief and for damages, brought in the circuit court of Cook County by plaintiffs, Arthur Young & Company and Arthur Young United States (collectively plaintiff) against 12 former employees. The trial court dismissed the action against eight of the defendants, Gary R. Kerslake, Phillip J. Mihok, Raymond B. Jones, James D. Read, Randall E. Smith, Alvin Larry Thomas, William K. Whaling and Nicholas H. Yoo, for lack of personal jurisdiction, and dismissed the action against the remaining four defendants, Christopher B. Bremer, David W. Glogowski, William R. Muns and John L. Knapp, under section 2— 619(a)(3) of the Illinois Code of Civil Procedure (Ill. Rev. Stat. 1987, ch. 110, par. 2 — 619(a)(3)). Bremer, Glogowski, Knapp and Muns additionally moved to dismiss on forum non conveniens grounds, but this motion was denied. Plaintiff appeals, contending that the trial court’s orders of dismissal were improper. Bremer, Knapp, Glogowski and Muns cross-appeal, alleging that the trial court’s denial of their motion to dismiss on forum non conveniens grounds was error.

Defendants are all former employees of plaintiff, a national partnership headquartered in New York. Upon accepting employment with plaintiff, some of the defendants signed an employment agreement with plaintiff. These agreements contained a restrictive covenant purporting to bar them, for a period of two years after their termination, from

“directly or indirectly soliciting] or providing], without the consent of the firm, any professional services such as those provided by the firm for anyone who was a client of the firm anytime during the 12 months prior to your leaving the firm and for whom you provided any service as an employee of the firm during the prior five years.”

During their employment, each defendant provided management consulting services to one or more of plaintiff’s clients. While employed by plaintiff, defendants worked almost exclusively at their clients’ places of business, which for the most part were outside of Illinois. Each defendant was assigned to one of plaintiff’s operating groups known as Midwest Management Consulting Group (MMCG). MMCG was based in Illinois. During their employment, defendants’ residences were as follows:

Smith California
Whaling California
Jones Texas
Read Texas
Thomas Texas
Muns Texas
Mihok Arizona
Kerslake Wisconsin
Yoo Michigan
Bremer Illinois
Glogowski Illinois
Knapp Illinois

Most of the defendants spent a significant portion of their time working on a project in California for Northrop Corporation’s B-2 Division. Northrop is an aerospace and defense contractor which operates through eight independent divisions. The B-2 Division is headquartered in Pico Rivera, California. Defendants’ work for Northrop involved an information systems consulting project.

Each of the defendants resigned from plaintiff between May and December 1988. After defendants resigned, plaintiff assigned Richard Van Kirk, a partner in its Los Angeles office, to supervise the completion of the B-2 project. Plaintiff initially insisted that Northrop could not ask any defendant to continue working on the B-2 project after he left plaintiff’s employ. Northrop B-2 employees, however, advised plaintiff that it was imperative to keep the team intact in order to insure success. Plaintiff, through its Los Angeles office, entered into subcontracting arrangements with Read, Thomas, Whaling and Jones. The subcontracting arrangements expired on December 31, 1988.

Each of the defendants began to work for Technology Solutions Company (TSC), a Chicago-based firm. In October 1988, TSC responded to Northrop Electronics Division’s request for proposals for certain management consulting services by submitting a bid. Plaintiff, through its Los Angeles office, also bid on the Northrop project. In late December, Northrop awarded the contract to TSC. All Northrop employees having knowledge of the bidding process, contract negotiations and the work performed to date are located in California.

On January 4, 1989, defendants filed a suit against plaintiff in California State court. The complaint was served on plaintiff later that day. Defendants sought a declaratory judgment that plaintiff’s restrictive covenants could not be enforced to stop them from working in California for Northrop. Plaintiff answered the complaint and filed a counterclaim. A discovery supervision and scheduling order was entered, and defendants have deposed three witnesses pursuant to it. Subsequently, defendants and TSC filed an amended complaint. Plaintiff has moved to dismiss the amended complaint in favor of New York litigation which it filed against TSC.

Also on January 4, 1989, plaintiff filed a suit against Muns in Illinois. Plaintiff did not serve the complaint. Rather, after receiving notice of the California suit, plaintiff filed its first amended complaint, naming as defendants the 12 California plaintiffs. Plaintiff’s action seeks an injunction preventing defendants from working in California for Northrop. Plaintiff subsequently filed second, third and fourth amended complaints, each adding new claims which either modified or deleted old ones.

Plaintiff appeals the trial court’s orders of dismissal. We first will address the propriety of the order dismissing 8 of the 12 defendants for lack of personal jurisdiction.

. Plaintiff contends that each of the eight defendants who raised jurisdictional objections engaged in significant activity in Illinois while under the employ of plaintiff and, subsequently, while under the employ of TSC. Plaintiff maintains that an analysis of the contracts between Illinois and each of these defendants discloses conduct that is more than sufficient to subject the defendants to personal jurisdiction in Illinois under the long-arm statute. Ill. Rev. Stat. 1987, ch. 110, par. 2 — 209.

The Illinois long-arm statute provides in relevant part as follows:

“(a) Any person, whether or not a citizen or resident of this State, who in person or through an agent does any of the acts hereinafter enumerated, thereby submits such person, and, if an individual, his or her personal representative, to the jurisdiction of the courts of this State as to any cause of action arising from the doing of any such acts:
(1) The transaction of any business within this State;
(2) The commission of a tortious act within this State.” (Ill. Rev. Stat. 1987, ch. 110, par. 2 — 209(a).)

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Bluebook (online)
554 N.E.2d 671, 197 Ill. App. 3d 30, 143 Ill. Dec. 736, 1990 Ill. App. LEXIS 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arthur-young-co-v-bremer-illappct-1990.