Elmer Miller, Inc. v. Landis

625 N.E.2d 338, 253 Ill. App. 3d 129, 192 Ill. Dec. 378, 1993 Ill. App. LEXIS 1398
CourtAppellate Court of Illinois
DecidedSeptember 9, 1993
Docket1-92-2233
StatusPublished
Cited by23 cases

This text of 625 N.E.2d 338 (Elmer Miller, Inc. v. Landis) 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
Elmer Miller, Inc. v. Landis, 625 N.E.2d 338, 253 Ill. App. 3d 129, 192 Ill. Dec. 378, 1993 Ill. App. LEXIS 1398 (Ill. Ct. App. 1993).

Opinion

PRESIDING JUSTICE CAHILL

delivered the opinion of the court:

In June 1992, the plaintiff, Elmer Miller, Inc. (EMI), obtained a preliminary injunction against the defendants, Jeffrey Landis and Banibal Adde, former salesmen for EMI. Generally, the injunction prohibits the defendants from soliciting any customer of EMI, disparaging EMI in any way, or using any customer list or customer information obtained from EMI. The defendants have appealed. We affirm.

In 1986, EMI purchased the Richard Bennett custom tailor shop in Chicago for $70,000. Of the purchase price, $10,000 was allocated to the inventory and $60,000 to the value of the business, including a list of customers and customer files. EMI also operated a Richard Bennett store in Milwaukee, Wisconsin.

EMI hired Jeffrey Landis to work in the Chicago store in April of 1986. Landis worked continuously at the store until he quit in January of 1992. EMI hired Bannibal Adde for the Chicago store in April of 1987. Adde quit in March of 1992. Both worked as salesmen. Neither signed a confidentiality agreement or a restrictive covenant limiting his right to compete with Richard Bennett after leaving EMI.

EMI generated a computer list of Richard Bennett customers and updated it at least twice a year. When the Chicago store was purchased, the list totalled approximately 1,250 customers. The current list totals about 1,200. Elmer Miller testified that between 75% and 80% of these customers are currently active. In addition to the computer list, the store maintains files of customer names, addresses, measurements, previous order forms, preferred style information, and swatches of the customer’s preferred material. Such information often allowed customer’s orders to be filled by phone with no need for the customer to visit the store.

Elmer Miller testified that Adde and Landis were informed that the information in the customer files was confidential when they were hired and when they quit. The files were kept in a closed file drawer at the Richard Bennett store. Only the salesmen who contacted repeat customers were permitted access to the customer files.

The following facts emerge from evidence depositions and the testimony at the preliminary injunction hearing. On or about February 14, 1992, after Landis left the Chicago store, businessman Ralph Gidwitz went to the store and spoke with Banibal Adde, the only salesman working there at the time. Adde told Mr. Gidwitz the following: that the Richard Bennett store was losing business, and that he did not expect to be working there much longer. He also asked Mr. Gidwitz if he would like to be sent an announcement for Adde’s new business. Mr. Gidwitz received an announcement in the mail in late March. The announcement indicated it was from “Baño Adde and Jeff Landis, formerly with Richard Bennett.”

In mid-March 1992, after Adde left Richard Bennett, David Miller, the owner’s son, examined approximately 100 customer files in the Chicago store. He testified that approximately 30 files lacked the customer’s last order form. In addition to the customer’s name and address, the order forms contain measurements, styling information, and fabric choices.

At the end of March 1992, Chicago attorney Walter H. Djokic also received an announcement in the mail for Landis and Adde’s new custom tailor shop. Mr. Djokic had been a customer of Richard Bennett since 1982, but only dealt with Charles Kyles, another salesman at the Chicago store. Several days after receiving the announcement, Mr. Djokic received a telephone call at home on his private line. The caller identified himself as Jeffrey Landis and told Mr. Djokic that he and Banibal Adde could service his needs, that they “had his information,” and that they could take care of him over the telephone. Concerned that the caller might have his credit information, Mr. Djokic called the Richard Bennett store and told Charles Kyles about the phone call.

Early in April of 1992, another Chicago businessman and customer of Richard Bennett, Richard Johnson, received Landis and Adde’s announcement in the mail. Several days later, Mr. Johnson also received a telephone call from Landis about the new tailor shop.

Appellate review of a preliminary injunction is limited. A preliminary injunction does not decide disputed facts or rights, but instead preserves the status quo until there can be a hearing on the merits. (Shodeen v. Chicago Title & Trust Co. (1987), 162 Ill. App. 3d 667, 515 N.E.2d 1339.) The trial court has a large measure of discretion in granting or denying a preliminary injunction. (Disher v. Fulgoni (1984), 124 Ill. App. 3d 257, 464 N.E.2d 639.) Appellate review is limited to whether or not granting the injunction is against the manifest weight of the evidence. PCx Corp. v. Ross (1988), 168 Ill. App. 3d 1047, 522 N.E.2d 1333.

A party seeking a preliminary injunction must show: (1) a clear right or interest needing protection; (2) an inadequate remedy at law; (3) irreparable harm if it is not granted; and (4) a reasonable likelihood of success on the merits. (Office Mates 5, North Shore, Inc. v. Hazen (1992), 234 Ill. App. 3d 557, 599 N.E.2d 1072.) Once granted, the only question on review is whether or not there was a sufficient showing to sustain the order of the trial court. The appellate court is not to decide the merits of the case. (City of Chicago v. Airline Canteen Service, Inc. (1978), 64 Ill. App. 3d 417, 432-33, 380 N.E.2d 1106, 1118; Stocker Hinge Manufacturing Co. v. Darnel Industries, Inc. (1978), 61 Ill. App. 3d 636, 377 N.E.2d 1125.) Since a preliminary injunction does not resolve factual disputes or determine rights, its appropriateness on review can be determined largely by the sufficiency of the allegations in the complaint. Fischer v. Brombolich (1991), 207 Ill. App. 3d 1053, 566 N.E.2d 785; Witter v. Buchanan (1985), 132 Ill. App. 3d 273, 476 N.E.2d 1123.

The trial court granted the plaintiff the following preliminary injunction:

“1. The Petition for Preliminary injunction is granted and the Defendants and each of them are restrained from:
a. Soliciting any customer of Richard Bennett or Elmer Miller, Inc. as of March 13, 1992, until final disposition hereof or further order of this Court.
b. Disparaging Richard Bennett or Elmer Miller, Inc. in any way whatsoever including expressly but not exclusively, stating to any person orally, in writing or otherwise that Richard Bennett or Elmer Miller, Inc. is unable to pay its bills or is going out of business.
c.

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Bluebook (online)
625 N.E.2d 338, 253 Ill. App. 3d 129, 192 Ill. Dec. 378, 1993 Ill. App. LEXIS 1398, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elmer-miller-inc-v-landis-illappct-1993.