Mid-Town Petroleum, Inc. v. Gowen

611 N.E.2d 1221, 243 Ill. App. 3d 63, 183 Ill. Dec. 573, 1993 Ill. App. LEXIS 256
CourtAppellate Court of Illinois
DecidedFebruary 26, 1993
Docket1-92-2849
StatusPublished
Cited by22 cases

This text of 611 N.E.2d 1221 (Mid-Town Petroleum, Inc. v. Gowen) 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
Mid-Town Petroleum, Inc. v. Gowen, 611 N.E.2d 1221, 243 Ill. App. 3d 63, 183 Ill. Dec. 573, 1993 Ill. App. LEXIS 256 (Ill. Ct. App. 1993).

Opinion

JUSTICE COUSINS

delivered the opinion of the court:

After a preliminary hearing, the trial court entered an order denying the motion of plaintiff, Mid-Town Petroleum, Inc. (Mid-Town), for a preliminary injunction to enjoin defendant, Robert M. Gowen (Gowen), from soliciting, calling upon, diverting, or taking away any of the customers or accounts of Mid-Town. Plaintiff, Mid-Town, files this interlocutory appeal pursuant to Supreme Court Rule 307(a) (107 Ill. 2d R. 307(a)).

On appeal, plaintiff contends that the trial court abused its discretion in denying plaintiff’s request for preliminary injunction in that the trial court’s findings are against the manifest weight of the evidence.

We affirm.

Background

The plaintiff, Mid-Town, is in the business of selling and distributing petroleum products. The defendant, Paulson Oil (Paulson), is in the same business. Gowen was a 15-year employee, as a sales representative with Mid-Town from 1977 to April 7, 1992, when he resigned. In August 1991 while employed by Mid-Town, Gowen signed an employment agreement in which he agreed, among other things, to refrain from soliciting business from customers at Mid-Town for a period of 18 months following termination of employment. Gowen was promoted to sales manager simultaneously with the signing of the August agreement. A written job description of Gowen’s duties as sales manager provided, among other things, that he would report to the chief executive officer (CEO). On April 6, 1992, Gowen was informed by the CEO that he would no longer report to the CEO. He formally resigned from Mid-Town the next day. On April 27, 1992, Gowen commenced employment as a sales representative for Paulson. Admittedly, he immediately began to solicit business from some customers he had serviced at Mid-Town.

On May 11, 1992, plaintiff, Mid-Town, filed its verified complaint against defendants, Gowen and Paulson, for injunctive and other relief. On motion of plaintiff for a temporary restraining order and preliminary injunction filed May 11, 1992, the trial court, on May 13, 1992, entered a temporary restraining order and set July 24, 1992, for hearing on the preliminary injunction motion. A hearing on the motion for preliminary injunction was commenced and concluded on July 24, 1992. At the conclusion of the hearing, the trial court determined that it was unlikely that the plaintiff would win on the merits concerning enforceability of the employment agreement. The court dissolved the temporary restraining order and denied the motion for preliminary injunction. Only two witnesses, William Battersby, chief executive officer of Mid-Town, and the defendant, Robert M. Gowen, testified at the hearing.

Battersby testified as follows.

Mid-Town is engaged in the business of distributing and selling lubricant oils, and he had served as president and chief executive officer since approximately May 1991.

Upon his election as president and chief executive officer, he initiated a practice of requiring all employees to sign an employment agreement. No such practice existed prior to 1991.

He informed Gowen, as he had all other employees, that he, Go-wen, would have to sign the employment agreement or be discharged. Gowen initially refused to sign in July 1992. Then, on August 21, 1992, Gowen was also appointed sales manager, which was a new position at Mid-Town. At that time, Gowen signed the employment agreement,

Gowen received no consideration other than continuation of his employment in return for execution of the employment agreement.

In April 1992, Battersby told Gowen that he was going to change Gowen’s responsibilities as sales manager so that, among other things, Gowen would no longer report to the CEO.

The salesmen would call Gowen on their car phones. Battersby felt it was taking too much time out of Gowen’s selling. When informed of the change, Gowen mentioned that he thought it was in everyone’s best interest that he leave Mid-Town’s employment. Battersby thought Go-wen viewed it as a major change in his sales management position and just didn’t want to face the salesmen. Battersby rejected an offer of Go-wen to stay on two weeks longer after resignation.

Mid-Town had six salesmen when the agreements were signed. Mid-Town now has four salesmen. Gowen has never been replaced as sales manager. The position of sales manager had not existed prior to August 1991. It was Battersby’s idea to create the position.

Battersby was 35 years old at the time of the evidentiary hearing. He had been employed at Mid-Town for approximately 12 years. He was hired by his father, Ray Battersby, who was his predecessor as president.

Gowen testified as follows.

Mid-Town had two salespersons already employed when he first started. He had 150 solid customers while employed with Mid-Town.

An employment agreement was presented to him in July by Battersby which he refused to sign. Battersby advised him that he would no longer work for Mid-Town if he refused to sign. Gowen again refused to sign in July.

Approximately four weeks later, Battersby again requested that he sign the employment agreement, and he again refused. A few days later, sometime during late August 1991, Battersby informed him that Mid-Town needed a sales manager and he qualified for that position. Battersby said he had no idea what a sales manager did and instructed Gowen to prepare a job description outlining what he felt the job of sales manager would encompass. He did so and presented it to Battersby a day or two later. Battersby glanced at it, told him it was fine, and offered him the job.

Battersby then asked him to sign the employment agreement. He signed. Gowen felt that the sales manager position was a window of opportunity for his career.

On April 6, 1992, Battersby informed him that there were going to be some changes taking place. He would no longer report to Battersby. He would no longer have responsibility for the salesmen. He would report to Ron Valacity, vice-president. The salesmen would report on a daily basis to Ron Valacity. He would be responsible only for the training of the salesmen, product training. The next day, he advised Battersby that this change was unacceptable and that he was resigning. Battersby told him he was doing them a favor. He received two weeks’ vacation pay and a profit-sharing check for money he had accumulated.

In a letter to Mid-Town, written after his resignation, Gowen indicated that he signed the agreement in consideration of receiving the job as general sales manager. He worked for Keystone and sold lubricants for nine years before he began work for Mid-Town. He received no training when he went to work for Mid-Town. He wasn’t assigned any existing accounts when he went to work for Mid-Town. He had no specific territory. His last salary at Mid-Town was around $32,000 annually or $635 weekly.

The agreement regarding the sales manager’s position provides: reporting to the CEO, William Battersby.

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Bluebook (online)
611 N.E.2d 1221, 243 Ill. App. 3d 63, 183 Ill. Dec. 573, 1993 Ill. App. LEXIS 256, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mid-town-petroleum-inc-v-gowen-illappct-1993.