Professional Business Management, Inc. v. Clark

227 N.E.2d 371, 83 Ill. App. 2d 236, 1967 Ill. App. LEXIS 1025
CourtAppellate Court of Illinois
DecidedMay 25, 1967
DocketGen. 66-98
StatusPublished
Cited by23 cases

This text of 227 N.E.2d 371 (Professional Business Management, Inc. v. Clark) 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
Professional Business Management, Inc. v. Clark, 227 N.E.2d 371, 83 Ill. App. 2d 236, 1967 Ill. App. LEXIS 1025 (Ill. Ct. App. 1967).

Opinions

CORYN, J.

Plaintiff, Professional Business Management, Inc., (hereinafter called PBM), filed a verified complaint on September 12, 1966, for a temporary and permanent injunction restraining defendant, who had voluntarily terminated his employment with plaintiff on September 30, 1965, from breaching an alleged provision of their written employment agreement, as follows:

“Second party [i. e., defendant] expressly covenants . . . that for a period of two years following the termination of his employment ... he will not directly or indirectly . . . engage in the business of a professional business counselor in the City of Chicago or within fifty (50) miles of . . . Chicago . . . nor will he solicit or accept for business any client of . . . [PBM] who is a client of record of . . . [PBM] ... on the date of termination or within six months prior thereto.”

The complaint alleges that plaintiff is in the business of counselling clients, most of whom are doctors and dentists, on business practices in their professions, including recommendations as to suitable fees, control of expenses, proper budgeting, workable credit policies, collection procedures, investments, training of personnel, purchasing, preparation of income and disbursement records and tax returns, and also offers aid in the collection of accounts receivable. It is alleged that in consideration of his employment by plaintiff, defendant executed the foregoing covenant, but thereafter voluntarily terminated his association and then, in violation of said covenant, commenced soliciting clients of plaintiff for professional business management services, by reason of which plaintiff has lost clients and has suffered and will continue to suffer irreparable injury unless defendant is enjoined. On October 11, 1966, defendant filed an answer alleging in substance that there is nothing unique in the nature of plaintiff’s business; denying that the covenant aforesaid is supported by consideration; and stating certain other special defenses including that defendant learned nothing of plaintiff’s business in the course of his employment except what is available to any person, with an imderstanding of such matters, from many available publications in professional journals; and that the names of doctors and dentists who seek such services are readily accessible from any telephone listing. On November 4, 1966, before a reply was made to the answer, but after notice and hearing, the court entered the decree, from which both parties have perfected this interlocutory appeal, granting plaintiff a temporary injunction and restraining defendant from engaging in business as a professional counselor and from soliciting any clients of plaintiff, but limiting its effect to the City of Chicago, and a radius therefrom of fifty miles. Plaintiff claims that the territorial limitations of this injunction insofar as it relates to dealing with clients of PBM is erroneous, and that defendant should be restrained from dealing with any who were clients of PBM anywhere, if they were clients within six months of the date of plaintiff’s termination. Defendant contends that the issuance of the temporary decree was wholly erroneous since it does not preserve the status quo, but grants to plaintiff the ultimate relief to which it could be entitled after full hearing for a permanent injunction; that no prima facie right to such temporary relief was shown; that the covenant involved is unsupported by consideration, was fraudulently conceived, and is plainly void, unenforceable, and contrary to antitrust laws of Illinois; and finally, that plaintiff is barred by laches.

At the time of the hearing, it appeared certain that defendant was furnishing counselling services to five persons who were former clients of plaintiff during the six months preceding defendant’s termination of employment, and that two of these were outside of the territorial limitations of the temporary injunction. The proof also establishes that plaintiff is a corporation engaged in the business of counselling on accounting and business practices and procedures, the preparation of tax returns and in giving aid to clients in the collection and control of accounts receivable. Most of its clients, with whom it has only oral contractual relations terminable at the will of either, are doctors and dentists. It employs “counsellors,” and it claims to train these “counsellors” in the use of special forms and books, which it admittedly designed. Defendant, at the time of his employment by plaintiff, held a bachelor’s degree in education from Northern Illinois University, with a major in mathematics, a master’s degree from Northwestern University in educational administration, had studied accounting by correspondence courses from LaSalle Extension University, and had been employed for a number of years as an auditor to a golf club, and later, as assistant treasurer and credit manager for Hansen Scale Company, where he also performed the duties of a comptroller and office manager. He had also served as credit manager and chairman of the National Housewares Manufacturers organization. Various newspaper advertisements were received in evidence showing that plaintiff, in soliciting employees, established a college degree and knowledge and experience in accounting as employment prerequisites. Defendant testified that during his employment with plaintiff, he was supplied by PBM with certain of its publications concerning the nature or character of counselling and business and accounting practices and procedures, but that this information is available to anyone in publications of Commerce Clearing House, Prentice-Hall, other professional journals of CPA’s, and Kipling-er’s Letters, some or all of which deal with matters of business collection procedures, public relations, training of personnel, use of records and forms, insurance, investments, retirement plans and income tax.

Where an answer is filed to an application for a temporary injunction denying the material allegations of the complaint, and the legal sufficiency of such answer is unchallenged, a temporary injunction will usually not be granted unless after hearing the trial court reasonably concludes, on the basis of the evidence, that complainant will probably be entitled to the ultimate relief; that the applicant would suffer immediate and certain injury if the temporary relief requested were to be withheld; and that the granting of such protection outweighs any possible injury that might be done defendant by its issuance. See Nichols, Illinois Civil Practice, § 2285; 21 ILP, Injunctions, § 12. The scope of this review is limited to the question of whether plaintiff’s showing at the hearing on the petition for temporary injunction was sufficient to sustain the determination of the trial court. Schuler v. Wolf, 372 Ill 386, 390, 24 NE2d 162.

In determining whether a sufficient showing was made to sustain the temporary order, it is necessary to consider the question of what showing the law requires for the ultimate relief, not for the purpose of deciding whether the applicant is entitled to that, but for . the limited purpose of deciding only whether he has established favorable probabilities for such ultimate relief. Chicago Motor Coach Co. v. Budd, 346 Ill App 385, 390, 105 NE2d 140. In Vander Werf v.

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Professional Business Management, Inc. v. Clark
227 N.E.2d 371 (Appellate Court of Illinois, 1967)

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Bluebook (online)
227 N.E.2d 371, 83 Ill. App. 2d 236, 1967 Ill. App. LEXIS 1025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/professional-business-management-inc-v-clark-illappct-1967.