Profit Management Development, Inc. v. Jacobson, Brandvik & Anderson, Ltd.

CourtAppellate Court of Illinois
DecidedDecember 9, 1999
Docket2-98-1459
StatusPublished

This text of Profit Management Development, Inc. v. Jacobson, Brandvik & Anderson, Ltd. (Profit Management Development, Inc. v. Jacobson, Brandvik & Anderson, Ltd.) 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
Profit Management Development, Inc. v. Jacobson, Brandvik & Anderson, Ltd., (Ill. Ct. App. 1999).

Opinion

9 December 1999

No. 2--98--1459

________________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

_______________________________________________________________________________

PROFIT MANAGEMENT DEVELOPMENT,   ) Appeal from the Circuit Court

INC., n/k/a Petefish ) of Lake County.

Management, Inc., LESLIE G.      )

BEHREND, and NORMA A. BEHREND, )

                                )

Plantiffs-Appellants and    )

Cross-Appellees,            )

v.                          ) No. 96--L--70

JACOBSON, BRANDVIK AND ANDERSON,   )

LTD., and  CRAIG E. ANDERSON,   )

                                ) Honorable

Defendants-Appellees and    ) Charles F. Scott,

Cross-Appellants.           ) Judge, Presiding.

_______________________________________________________________________________

JUSTICE THOMAS delivered the opinion of the court:

The plaintiffs, Profit Management Development, Inc. (Profit Management), now known as Petefish Management, Inc., Leslie G. Behrend (Mr. Behrend), and Norma A. Behrend (Mrs. Behrend), filed this legal malpractice lawsuit against the defendants, Jacobson, Brandvik & Anderson, Ltd. (JB&A), and Craig E. Anderson, alleging that the defendants negligently represented the plaintiffs in connection with an employment dispute between the plaintiffs and one of the plaintiffs' employees.  Following a jury verdict in favor of the plaintiffs for $41,000, the trial court entered judgment on their behalf for that amount.  Thereafter, both the plaintiffs and the defendants filed posttrial motions.  The trial court denied both posttrial motions.  The plaintiffs appeal and the defendants cross-

appeal.

The record reveals that Mr. Behrend was the president of Profit Management and Mrs. Behrend was the treasurer and secretary.  In 1980, the plaintiffs retained the services of JB&A, a Chicago law firm, to revise the plaintiffs' employment contracts for its sales personnel.  Anderson and another partner from JB&A made that revision.  In 1984, Profit Management entered into a written employment contract with Dean Baughman, one of the plaintiffs' salesmen.  Under that contract, Baughman was to be paid a base salary of $35,000 per year, plus a 10% commission of gross sales that he initiated, minus his expenses.  The contract prohibited modifications unless they were in writing and signed by both parties.

Leslie Behrend testified that Profit Management sent a letter to Baughman in March 1988 attempting to amend his commission schedule.  According to Mr. Behrend, Baughman did not object to the letter, and he received and accepted commissions based upon the modified formula.

Dean Baughman testified that he did not agree to the modification because the new method of calculation under the modification would have reduced his commission 10 times.  He testified that he specifically told Mrs. Behrend that the change was totally unacceptable.  Thereafter, Baughman noticed inconsistencies in his commission checks and by November 1988 he was making continuous inquiries about them.

On April 18, 1989, Profit Management sent Baughman a letter terminating his employment.  The letter acknowledged that Profit Management owed Baughman commissions of $20,719.64.  On the same day that the letter was sent, Mr. Behrend sent a letter to a private investigator asking him to determine whether Baughman had had any employment outside of Profit Management in violation of a provision contained in the employment agreement prohibiting outside employment.  On June 30, 1989, Mr. Behrend sent a letter to James A. Brandvik, a partner at JB&A, which stated that he had dismissed Baughman for "economic reasons" and that, although he did not have all the proof yet, he believed Baughman had been working for a competing consulting firm.  Along with the letter, Mr. Behrend sent a copy of the private investigator's June 28, 1989, report on Baughman's activities.  The letter to JB&A concluded by stating, "Let's have some more fun, Jim!"

On July 17, 1989, Profit Management sent Baughman a letter telling him that it would not pay him any commissions.  On January 5, 1990, Baughman, through his attorney, sent a demand letter to Profit Management.  Profit Management then sent that letter to JB&A, stating that it was "forwarding it to you for counsel and action decision.  Please let us hear from you."  On January 26, 1990, JB&A sent Baughman and his attorney a letter stating that Profit Management was denying the claim based on a provision in the parties' contract that, in the event of a violation of its terms by the employee, the employee would forfeit any unpaid bonuses or incentive compensation.  On February 15, 1990, Baughman filed a breach of contract action against Profit Management in the circuit court of Cook County.  Paragraph 9 of that complaint stated:

"In early 1988, [Profit Management] attempted to alter the terms of the employment agreement signed by the parties, but this was never agreed to by Baughman, and no written modification was agreed to or signed by the parties, as required under the terms of the employment agreement, Section 11."

On May 29, 1990, Brandvik filed an answer of behalf of Profit Management admitting paragraph 9 of Baughman's complaint.  The answer included an affirmative defense, alleging that Baughman was not entitled to commissions because he violated the forfeiture provisions of the parties' contract.  In their answer, Brandvik and JB&A did not include an affirmative defense based on any attempted modification of the contract by Profit Management in 1988, nor did they file a counterclaim against Baughman for breach of contract.

After some discovery in the case, Baughman revised his demand claiming that he was entitled to $143,801.76 in commissions because he had not agreed to the 1988 modification.  Thereafter, on April 30, 1991, Baughman made a written settlement offer of $35,000.  According to Mr. Behrend, JB&A faxed the settlement offer to his office, but he did not see it because he was out of town at the time.  He testified that he never discussed the settlement offer with anyone from JB&A, nor did JB&A advise him as to the cost of settlement in relation to the cost of defending the suit.  However, on cross-examination, he acknowledged that he had previously given sworn testimony indicating that his attorney had told him about the $35,000 settlement but that he was "miles apart in agreement."  On November 7, 1991, Mrs. Behrend wrote Brandvik a letter stating in part:

"I get the feeling that your firm feels that we owe the man money for commission when he was not living up to the contract which your firm wrote.  I don't want to lose this case.  I know that nothing is 'for sure', but I do dislike always being the patsy for employees who sap my money and don't earn it."

On November 20, 1993, Profit Management terminated JB&A, claiming that the firm was not ready for trial of the case, which was scheduled for January 24, 1994.  On November 30, 1993, the plaintiffs hired Joe Marconi of Johnson & Bell as substitute counsel.  Mr.

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

Related

Goran v. Glieberman
659 N.E.2d 56 (Appellate Court of Illinois, 1995)
American Pharmaseal v. TEC SYSTEMS
515 N.E.2d 432 (Appellate Court of Illinois, 1987)
Palmros v. Barcelona
672 N.E.2d 1245 (Appellate Court of Illinois, 1996)
Tucek v. Grant
472 N.E.2d 563 (Appellate Court of Illinois, 1984)
Chemical Bank v. Paul
614 N.E.2d 436 (Appellate Court of Illinois, 1993)
Ellington v. Bilsel
626 N.E.2d 386 (Appellate Court of Illinois, 1993)
In Re Marriage of Decker
606 N.E.2d 1094 (Illinois Supreme Court, 1992)
Snover v. McGraw
667 N.E.2d 1310 (Illinois Supreme Court, 1996)
Simmons v. University of Chicago Hospitals & Clinics
617 N.E.2d 278 (Appellate Court of Illinois, 1993)
Newton v. Meissner
394 N.E.2d 1241 (Appellate Court of Illinois, 1979)
FIDELITY & CAS. CO., NY v. Mobay Chemical Corp.
625 N.E.2d 151 (Appellate Court of Illinois, 1993)
Hajian v. Holy Family Hospital
652 N.E.2d 1132 (Appellate Court of Illinois, 1995)
Hermitage Corp. v. Contractors Adjustment Co.
651 N.E.2d 1132 (Illinois Supreme Court, 1995)
Makela v. Roach
492 N.E.2d 191 (Appellate Court of Illinois, 1986)
Pinnacle Corp. v. Village of Lake in Hills
630 N.E.2d 502 (Appellate Court of Illinois, 1994)
Butler v. Mayer, Brown and Platt
704 N.E.2d 740 (Appellate Court of Illinois, 1998)
Nieukirk v. Board of Fire & Police Commissioners
423 N.E.2d 1259 (Appellate Court of Illinois, 1981)
Brite Lights, Inc. v. Gooch
713 N.E.2d 155 (Appellate Court of Illinois, 1999)
Usselmann v. Jansen
629 N.E.2d 193 (Appellate Court of Illinois, 1994)
Bulleri v. Chicago Transit Authority
190 N.E.2d 476 (Appellate Court of Illinois, 1963)

Cite This Page — Counsel Stack

Bluebook (online)
Profit Management Development, Inc. v. Jacobson, Brandvik & Anderson, Ltd., Counsel Stack Legal Research, https://law.counselstack.com/opinion/profit-management-development-inc-v-jacobson-brand-illappct-1999.