Management Ass'n of Illinois, Inc. v. Board of Regents of Northern Illinois University

618 N.E.2d 694, 248 Ill. App. 3d 599, 189 Ill. Dec. 124
CourtAppellate Court of Illinois
DecidedJune 18, 1993
Docket1 — 92—0476
StatusPublished
Cited by53 cases

This text of 618 N.E.2d 694 (Management Ass'n of Illinois, Inc. v. Board of Regents of Northern Illinois University) 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
Management Ass'n of Illinois, Inc. v. Board of Regents of Northern Illinois University, 618 N.E.2d 694, 248 Ill. App. 3d 599, 189 Ill. Dec. 124 (Ill. Ct. App. 1993).

Opinion

PRESIDING JUSTICE GORDON

delivered the opinion of the court:

Plaintiff, the Management Association of Illinois, Inc., appeals from the order of the circuit court of Cook County granting defendants’ section 2 — 619 (Ill. Rev. Stat. 1991, ch. 110, par. 2 — 619) motion to dismiss plaintiff’s action for damages, injunction, and other relief against defendants, the Board of Regents of Northern Illinois University, Mary Rose Hennessy, John Conrath, Daniel Hochstetter, David Murray, Sandra Pater and Sharon Young. The issue on appeal is whether the circuit court of Cook County has subject matter jurisdiction over plaintiff’s claims.

On appeal, plaintiff contends that, as to all counts other than the Trade Secrets Act (Ill. Rev. Stat. 1991, ch. 140, par. 351 et seq.) count, the various forms of relief sought against the Board of Regents of Northern Illinois University (injunction, accounting, constructive trust) do not affect the State’s legitimate actions or subject the State to liability for damages so as to make this a suit against the State within the meaning of the Court of Claims Act (Ill. Rev. Stat. 1991, ch. 37, par. 439.1 et seq.). Although plaintiff seeks money damage’s from the Board of Regents in its Trade Secrets Act count, plaintiff contends that by the language of the Illinois Trade Secrets Act (Ill. Rev. Stat. 1991, ch. 140, par. 351 et seq.), the State has expressly consented to be sued for damages on claims under that act; therefore, the count seeking damages is expressly excepted from Court of Claims jurisdiction.

Defendants contend in their brief that the language of the Trade Secrets Act does not expose the State of Illinois to suit in the circuit court and that the nature of each of plaintiff’s other claims or the relief sought is such that the suit is encompassed within the jurisdiction of the Court of Claims as a suit against the State of Illinois. Therefore, defendants contend that the Court of Claims has exclusive jurisdiction over all counts of the complaint.

We affirm the trial court’s order of dismissal on the grounds that the Court of Claims has exclusive subject matter jurisdiction.

The complaint alleges the following facts which for purposes of the section 2 — 619 motion are not disputed. Plaintiff, the Management Association of Illinois, Inc. (the Association), is a not-for-profit corporation with its principal place of business in Cook County. The Association provides educational and training services to member companies and nonmember companies and assists companies in securing grants to pay for Association services. The Association contracts with independent contractors who serve as instructors.

Prior to August 19, 1991, defendant Mary Rose Hennessy was a senior vice-president for the Association. She was in charge of providing educational and training services to businesses on behalf of the Association. Prior to August 19, 1991, defendants John Conrath, Daniel Hochstetter, David Murray, Sandra Pater and Sharon Young were Association employees working under Ms. Hennessy’s supervision. Conrath, Hochstetter, and Murray held management positions. The six individual defendants (Hennessy, Conrath, Hochstetter, Murray, Pater and Young) will be referred to collectively as “the Hennessy Group.”

The Hennessy Group, on behalf of the Association, individually or collectively prepared and distributed workshop and course catalogs; initiated and maintained proposals and contracts for educational and training services; designed, priced and scheduled customized on-site training and other programs; and arranged for grants to clients to fund the Association’s services. In the course of their duties, the Hennessy Group had access to lists of members, clients and prospective clients and to other confidential and proprietary marketing, sales and customer information.

Defendant Board of Regents of Northern Illinois University (NIU) is charged by statute with the management, control, operation, and maintenance of NIU. (Ill. Rev. Stat. 1991, ch. 144, par. 301.) The business and industry services department of NIU competes directly with the Association in providing educational and training services to businesses.

The complaint further alleges that on August 19, 1991, the Hennessy Group notified the Association that they intended to resign from the Association to become employed by the business and industry services department of NIU. The Association then ordered the Hennessy Group to vacate the Association premises and not to remove any confidential or proprietary information. The Hennessy Group vacated the premises. Soon afterwards, the Hennessy Group began employment at NIU, where they continue to be employed.

On February 4, 1992, the Association filed suit alleging that the Hennessy Group removed from the Association its membership list, lists of clients and prospective clients, course descriptions and catalogs, contracts between the Association and its clients, education and training proposals for existing and potential clients, files concerning funding efforts by the Association on behalf of clients, and files concerning Association programs (collectively referred to as Association Property). According to the complaint, these acts were for the benefit of the Hennessy Group’s new employer, NIU.

The complaint further alleges that the Hennessy Group encouraged other Association employees and instructors to leave the Association to work instead for NIU; that the Hennessy Group intentionally deleted certain courses from Association catalogs and failed to reserve space for some courses which were listed in the catalogs; that they held in abeyance some Association service proposals so that the proposals could be executed on behalf of NIU; that NIU assumed some contracts between the Association and its clients; and that funding which the Association helped clients obtain for Association services was instead used to fund NIU services to those same clients.

The complaint also states the Hennessy Group made representations which they knew to be false to clients, potential clients and instructors of the Association concerning discontinuance of certain programs and reductions in pay to instructors. The complaint further alleges that the Hennessy Group used the Association’s telephones and other facilities on the Association premises to solicit business for NIU.

The complaint avers that the acts of the Hennessy Group were wilfully designed to injure the Association and to benefit NIU and that the wrongful acts began in May 1991 and were discovered sometime after August 1991. The complaint does not delineate between acts and damages which occurred while the Hennessy Group were still employed by the Association and acts and damages which occurred later.

The complaint concludes that, as a result of the Hennessy Group’s wrongful acts, plaintiff has suffered, and continues to suffer, loss of customers, loss of repeat business and referrals from those customers, damage to the Association’s business reputation and loss of income. Plaintiff claims NIU is the direct recipient of much of the business lost by the Association.

Count I seeks injunctive relief.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Green v. State
2023 IL App (1st) 220245 (Appellate Court of Illinois, 2023)
Goings v. C/O Gunder
N.D. Illinois, 2022
Walker v. Harrington
S.D. Illinois, 2020
Leetaru v. The Board of Trustees of the University of Illinois
2015 IL 117485 (Illinois Supreme Court, 2015)
Harris, N.A. v. Sauk Village Development, LLC
2012 IL App (1st) 120817 (Appellate Court of Illinois, 2012)
Hobbs v. Cappelluti
899 F. Supp. 2d 738 (N.D. Illinois, 2012)
Joseph Construction Co. v. Board of Trustees of Governors State University
2012 IL App (3d) 110379 (Appellate Court of Illinois, 2012)
Altman v. DEPARTMENT OF CHILDREN AND FAMILY SERVS.
666 F. Supp. 2d 918 (S.D. Illinois, 2009)
Van Guilder v. Glasgow
588 F. Supp. 2d 876 (N.D. Illinois, 2008)
Cortright v. Doyle
Appellate Court of Illinois, 2008
Jackson v. Alverez
831 N.E.2d 1159 (Appellate Court of Illinois, 2005)
PHL, INC. v. Pullman Bank and Trust Co.
836 N.E.2d 351 (Illinois Supreme Court, 2005)
PHL Inc. v. Pullman Bank & Trust Co.
Illinois Supreme Court, 2005
Hampton v. City of Chicago
349 F. Supp. 2d 1075 (N.D. Illinois, 2004)
Fenje v. Feld
301 F. Supp. 2d 781 (N.D. Illinois, 2003)
Busch v. Bates
Appellate Court of Illinois, 2001

Cite This Page — Counsel Stack

Bluebook (online)
618 N.E.2d 694, 248 Ill. App. 3d 599, 189 Ill. Dec. 124, Counsel Stack Legal Research, https://law.counselstack.com/opinion/management-assn-of-illinois-inc-v-board-of-regents-of-northern-illinois-illappct-1993.