Illinois Minerals Co. v. McCarty

48 N.E.2d 424, 318 Ill. App. 423, 1943 Ill. App. LEXIS 897
CourtAppellate Court of Illinois
DecidedMarch 2, 1943
StatusPublished
Cited by12 cases

This text of 48 N.E.2d 424 (Illinois Minerals Co. v. McCarty) 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
Illinois Minerals Co. v. McCarty, 48 N.E.2d 424, 318 Ill. App. 423, 1943 Ill. App. LEXIS 897 (Ill. Ct. App. 1943).

Opinion

Mr. Justice Bristow

delivered the opinion of the court.

This is an appeal from part of an order of the circuit court abating the second, third and fourth counts of a complaint. The question involved is whether the cause of action alleged in either of these counts of the complaint, was one which survived under the Illinois Survival Statute.

The allegations contained in all of these counts are substantially as follows: In June 1933, Joe Webb was mill foreman at Elco, Illinois, for International Silica Company which was engaged i in the business of producing, mining, milling and selling silica. At a groat expense and by the diligence of its agents and officers, by widespread circularization of manufacturers, a profitable clientele was accomplished throughout the United States and Canada* One of the principal assets of the company was the record of this clientele. This record contained not only the names and addresses, but also the grade, price, and quantities of silica purchased by each. This record and list of customers was always kept secret, and was a valuable asset and property right. Its employees, including said Joe Webb who had access to its records, were instructed to keep said information confidential so that same could not come into the hands of its competitors.

On January 29, 1934, International Silica Company transferred its' business, good will and said information and list of customers to the plaintiff, Illinois Minerals Company, and the following month Illinois Minerals Company entered into an agreement with the plaintiff, Ozark Minerals Company in regard to operating its said mine at Elco.

Joe Webb continued as mine foreman for the plaintiffs, Illinois Minerals Company and Ozark Minerals Company. He surreptitiously and unknown to plaintiffs and in violation of express instructions which had been given him by them, copied' and made a list of the names of said customers and of sales, amounts and grades of silica purchased by such customers, from plaintiffs.

Plaintiff, And M. Davis, is president of Illinois Minerals Company and owner of all but two of its shares of stock and is an officer and large shareholder of plaintiff, Ozark Minerals Company. Defendant, Olive Branch Minerals Company is a competing company, engaged in the same business, in the same county. The original defendant, William E. McCarty was president of the defendant, Olive Branch Minerals Company and the owner of almost all of its stock, and had the control of its management.

On June 15, 1934, Joe Webb ceased to be mill foreman for plaintiffs and took with him said list of customers and information regarding the sales, amounts and grades of silica, though he knew it was the property of his employers and knew that the taking of the list with him constituted a violation of the trust and confidence which his former employers previously placed in him.

That thereafter said William E. McCarty learned that said Joe Webb had in his possession the list which he compiled as mill foreman for plaintiffs and said McCarty, Olive Branch Minerals Company and said Webb, knowing said list contained confidential information of great value to plaintiffs and that it would be of great value and source of profit to McCarty and Olive Branch Minerals Company, since Olive Branch Minerals Company was a new company in its field, that said list by use would immediately place it in a position it could not have reached without several years of solicitation of potential customers and expenditures of large sums of money; that McCarty, Olive Branch Minerals Company and Webb, with such knowledge, thereupon entered into a conspiracy whereby in concert they would by illegal, wilful, malicious, wrongful means by the use of said list which had been so illegally acquired, embark upon a ruthless plan to undermine and ruin the business of plaintiffs; that after said three-had so entered into said conspiracy, Olive Branch Minerals Company employed said Joe Webb as its mill foreman; that in furtherance of said conspiracy defendants, McCarty and Olive Branch Minerals Company, with the assistance of said Joe Webb, solicited the persons named on said list of customers which had been so illegally obtained and quoted prices to such persons for silica and related products which, in many instances, were less than cost of production and are continuing carrying- on the conspiracy which began with the illegal, malicious, wanton and wilful acquisition of said list; that defendants fraudulently concealed the above facts and that plaintiffs did not have knowledge that Webb had compiled said list, or defendants with Wehb had entered into said conspiracy, until after September 15, 1935; that as a result of said acts in furtherance of said conspiracy, plaintiffs have suffered and will suffer great damages.

Count III further alleged that Webb when ceasing to be mill foreman for plaintiffs, took with him and converted to his own use said list and information in violation of the trust and confidence of his former employers; that thereafter Webb sold said list to McCarty who knew same belonged to plaintiffs and that thereupon McCarty converted said list to his own use and the use of defendant Olive Branch Minerals Cqmpany.

Court IV further alleged that after Webb had so ceased to be mill foreman and had taken such list and information with him, that McCarty learned that Webb had same and induced Webb to sell same to McCarty which he did.

Later by amendment where throughout each count acts were characterized as “illegal, wilful, malicious, wanton and wrongful” the word “fraudulent” or “fraudulently” was inserted and statement was inserted that Webb stood in fiduciary relationship with his employer, and that his business was one of great trust and confidence and that he violated such duty.

McCarty died after the suit was instituted and his personal representative was substituted as defendant, in his stead and said amendments were made.

August 30, 1941, McCarty’s former attorney and ^attorney for defendants, filed a motion as amicus curiae to suggest his death and abate the suit which was granted. Leave was granted to file a motion that McCarty had died and that suit be abated. October 4, 1941 the court entered an order that the parties came and that plaintiffs moved to vacate said order of August 30 because no notice was served on plaintiffs. The court then ordered that plaintiffs’ motion to vacate said order dated August 30 be overruled, and further ordered that said motion of the amicus curiae to suggest the death and abate the suit “be and the same hereby is overruled.”

December 4, plaintiffs filed their motion to substitute the personal representative and suggested the death of William E. McCarty. December 5, the court entered an order that the executrix is made defendant instead of McCarty; that copy of order be served on executrix in 20 days and that plaintiffs are granted leave to amend complaint in 20 days. Said amendments to the complaint were filed December 22,1941.

January 7, 1942, the executrix by limited appearance in" her own proper person appeared and made a motion supported by affidavit, to show the court was wholly without jurisdiction of her person or to take further proceedings for the reason the action abated against McCarty at his death and was not an action which survived.

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48 N.E.2d 424, 318 Ill. App. 423, 1943 Ill. App. LEXIS 897, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-minerals-co-v-mccarty-illappct-1943.