Career Concepts, Inc. v. Synergy, Inc.

865 N.E.2d 385, 372 Ill. App. 3d 395, 310 Ill. Dec. 61, 2007 Ill. App. LEXIS 303
CourtAppellate Court of Illinois
DecidedMarch 28, 2007
Docket1-06-0993
StatusPublished
Cited by23 cases

This text of 865 N.E.2d 385 (Career Concepts, Inc. v. Synergy, Inc.) 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
Career Concepts, Inc. v. Synergy, Inc., 865 N.E.2d 385, 372 Ill. App. 3d 395, 310 Ill. Dec. 61, 2007 Ill. App. LEXIS 303 (Ill. Ct. App. 2007).

Opinion

JUSTICE GREIMAN

delivered the opinion of the court:

Defendant Synergy, Inc., appeals from the judgment of the trial court in favor of plaintiff Career Concepts, Inc. (CCI), on its breach of contract action. On appeal, defendant contends that: (1) the trial court erred in allowing the case to proceed to a trial on the merits; (2) the court’s liability finding was against the manifest weight of the evidence; and (3) the court abused its discretion by awarding plaintiff attorney fees.

Briefly stated, plaintiff, an employee placement agency, filed the underlying action in order to recover a placement fee allegedly owed by defendant, a professional employer organization (PEO). 1 Plaintiff claimed that the parties had a valid contract and defendant was in breach thereof because it failed to pay a placement fee after hiring Diane Takacs, an individual previously connected with plaintiff. In response, defendant argued that the purported contract was invalid because John Driscoll, the signator, did not have authority to enter into contracts on the company’s behalf. Moreover, defendant maintained that Diane Takacs was hired as a result of wholly unrelated circumstances.

Prior to trial, on June 17, 2005, defendant filed an “Emergency Motion in Limine, for Directed Verdict and Entry of Judgment” on the basis that plaintiff violated Supreme Court Rule 213(f) (210 Ill. 2d R. 213(f)) by failing to adequately and completely disclose its intended witnesses. Specifically, defendant argued that plaintiffs three witness disclosures were inadequate and incomplete because: (1) Diane Takacs’ address was not provided and her testimony was not divulged in appropriate detail; (2) the testimony of the remaining two witnesses, Amber Campbell and Keri Burton, was not divulged at all; and (3) John Driscoll was not listed as a potential witness. Accordingly, defendant requested that the court bar plaintiff from presenting any witnesses at trial. In the alternative, defendant argued that plaintiff could not support its claim solely based upon the witnesses and minimal subjects disclosed; therefore, the court should direct a verdict and enter judgment in defendant’s favor. After considering the motion, the trial court granted plaintiff 28 days to supplement its witness disclosures and comply with Rule 213.

On September 29, 2005, defendant filed a “Renewed Motion in Limine, for Directed Verdict and Entry of Judgment” on the basis that plaintiff failed to follow the trial court’s prior order to supplement its witness disclosures. At the subsequent hearing, plaintiff provided timely filed copies of its supplemental witness disclosures. Plaintiff maintained that it had previously faxed the document to defendant. The trial court ultimately denied defendant’s motion.

Then, on November 23, 2005, defendant filed an “Emergency Motion to Dismiss” pursuant to sections 13.70 and 15.85 of the Business Corporation Act of 1983 (Act) (805 ILCS 5/13.70, 15.85 (West 2004)). Defendant argued that plaintiff, an Indiana corporation, was not registered or authorized to do business as a foreign corporation in Illinois and therefore could not file the underlying lawsuit. Without ruling, the trial court took the motion under advisement and proceeded to trial.

At trial, Amber Campbell testified that she was employed by plaintiff as an account executive in 2001. Campbell stated that she initiated the relationship with defendant by “cold-calling” the company, and, after describing the nature of her call, she was directed to Driscoll. Driscoll stated that defendant was interested in hiring sales personnel; therefore, Campbell forwarded a contract to him via facsimile. Campbell testified that she asked whether Driscoll had authority to sign the contract. Driscoll responded in the affirmative and signed and returned the contract.

Under the terms of this standard contract, if defendant hired a candidate sent by plaintiff within one year, it was required to pay a placement fee, which was 30% of the hired candidate’s first-year compensation, including bonuses. In addition, the contract stated that, in the event that plaintiff was forced to pursue collection remedies, defendant agreed to “pay all expenses thereof, including reasonable attorney’s fees.”

Thereafter, in 2001, Campbell sent Takacs to interview with Driscoll and Jon Skulborstad, defendant’s founder and president. Campbell spoke directly to Skulborstad after the interviews, and he indicated that the company was not interested in hiring Takacs at that time. Takacs subsequently ended her relationship with plaintiff. Approximately two years later, she contacted plaintiff again for employment assistance. At that time, the company learned that defendant had hired Takacs later in 2001.

On cross-examination, Campbell testified that Driscoll signed the contract at issue in his capacity as hiring manager. Campbell admitted, however, that she did not know whether Driscoll actually was the hiring manager and she did not attempt to verify his title or position. She further admitted that she was never told by anyone within the company that Driscoll had contract-signing or hiring authority. When Campbell spoke to Skulborstad, she never mentioned the contract between the parties or inquired into Driscoll’s position or authority. Campbell stated that plaintiff was no longer in business.

Arnie Eastburn, plaintiffs owner and president, testified that Campbell was responsible for the formation and oversight of the relationship with defendant. In 2002, Eastburn called Skulborstad, whom he had known for years, to inquire whether he would be interested in potentially hiring any candidates. According to Eastburn, Skulborstad responded that he would be interested if there was a suitable candidate, and Eastburn alerted Skulborstad to the existing contract between their companies. Then, in 2003, after learning that Takacs had been hired by defendant in 2001, Eastburn sent Skulborstad an invoice for the outstanding placement fee of $30,000 based on the belief that Takacs earned $100,000 in her first year. In response, Skulborstad called Eastburn, announcing his refusal to pay the fee because the parties did not have a contract for services.

On cross-examination, Eastburn admitted that he never contacted Skulborstad when the parties entered into the contract at issue. He further admitted that he did not attempt to verify whether Driscoll had contract-signing authority. Eastburn denied that plaintiff conducted business in Illinois, but admitted that plaintiff worked with Illinois residents to find employment positions in Illinois “on a regular basis.” Eastburn acknowledged attending a “couple” of industry meetings in Illinois to “drum up” business. Eastburn further admitted that plaintiff was not registered to conduct business in Illinois and never paid franchise fees or taxes to the Illinois Secretary of State.

John Driscoll testified that he was employed by defendant in 2001 as a sales manager. Driscoll recalled being contacted by Campbell in early 2001 to begin a relationship between plaintiff and defendant. Driscoll stated that he presented the contract at issue to Skulborstad and was given authority to sign it.

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Cite This Page — Counsel Stack

Bluebook (online)
865 N.E.2d 385, 372 Ill. App. 3d 395, 310 Ill. Dec. 61, 2007 Ill. App. LEXIS 303, Counsel Stack Legal Research, https://law.counselstack.com/opinion/career-concepts-inc-v-synergy-inc-illappct-2007.