Quality Lighting, Inc. v. Benjamin

592 N.E.2d 377, 227 Ill. App. 3d 880, 169 Ill. Dec. 890
CourtAppellate Court of Illinois
DecidedMarch 27, 1992
Docket1-91-1789
StatusPublished
Cited by47 cases

This text of 592 N.E.2d 377 (Quality Lighting, Inc. v. Benjamin) 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
Quality Lighting, Inc. v. Benjamin, 592 N.E.2d 377, 227 Ill. App. 3d 880, 169 Ill. Dec. 890 (Ill. Ct. App. 1992).

Opinion

JUSTICE MURRAY

delivered the opinion of the court:

Plaintiff, Quality Lighting, Inc., appeals a grant of summary judgment in favor of defendants in a case involving trade secrets. Defendants are Burton Benjamin, Lighting and Lowering Systems, Inc., Du-ray Fluorescent Manufacturing Co., Inc., and Esco International, Inc.

Plaintiff filed a three-count complaint to challenge the various defendants’ use of technical, pricing and other information on the grounds that this information constitutes trade secrets and/or otherwise confidential information protectable under Illinois law. Plaintiff sought relief on the trade secrets issues in two separate counts, under the Illinois Trade Secrets Act (Ill. Rev. Stat. 1987, ch. 140, par. 351 et seq.) and under Illinois common law, respectively. A third count sought relief for breach of fiduciary duty on the part of Burton Benjamin, a former employee of plaintiff.

Defendants filed a motion for summary judgment. On May 22, 1991, the trial court granted defendants’ motion for summary judgment on counts I and II of plaintiff’s amended complaint. Plaintiff then voluntarily dismissed count III without prejudice and filed this timely appeal. The facts are as follows.

Burton Benjamin (Benjamin) founded Quality Lighting, Inc., a Delaware corporation, in 1965. In 1987 the assets of Quality Lighting, Inc., were sold to L.P.I. Limited Partnership, an Illinois limited partnership (LPI), and the business became the Quality Lighting Products Division (QL Products Division) of LPI. Thereafter Benjamin was employed by LPI under the terms of a November 2, 1987, employment agreement. The employment agreement contained covenants restricting Benjamin’s use of confidential information connected to the business and his ability to compete.

In 1989 LPI sold the assets of its QL Products Division to Jac Jacobsen Industries, Inc., a Connecticut corporation (JJI). The current Quality Lighting, Inc. (Quality), remains a wholly owned subsidiary of JJI. Quality designs, manufactures and assembles outdoor lighting products which it markets and sells nationwide for residential and commercial use.

After Benjamin sold the business to LPI in 1987, he became and remained an employee of LPI until LPI sold the business to plaintiff in 1989. Following that sale LPI remained in the lighting business, but in areas not competitive with plaintiff. Also following the 1989 sale Benjamin became an employee of plaintiff and remained an employee of plaintiff until his resignation in November of 1989. LPI informed Benjamin that as a condition of the purchase, JJI required that Benjamin become a consultant to JJI for a term of six months. Approximately April 3, 1989, JJI sent Benjamin an employment agreement which contained restrictive covenants regarding use of confidential information and post-employment competition. Benjamin refused to execute the employment agreement with JJI. In order to induce Benjamin to work for JJI, LPI entered into a termination agreement with Benjamin.

Benjamin also founded Lowering Systems, Inc., now known as Lighting and Lowering Systems (Lowering Systems), an Illinois corporation with its principal place of business at 2050 West Balmoral Drive in Chicago. Presently, Lowering Systems manufactures outdoor lighting fixtures and devices to raise and lower lighting fixtures. The other named defendants are Duray Fluorescent Manufacturing Co., Inc. (Duray), and Esco International, Inc. (Esco). Duray and Esco do business from the same address as Lowering Systems and are also engaged in the lighting business.

That the various defendants are using confidential information belonging to Quality appears to be undisputed. The various defendants claim a right to use the information based on a termination agreement between Benjamin and LPI and a failure of Quality to protect the information by measures required by Illinois case law construing the Illinois Trade Secrets Act.

Quality argues that the trial court erred in granting summary judgment because of the existence of numerous issues of material fact with respect to both the effect of the termination agreement and the reasonableness of the plaintiff’s efforts to safeguard its confidential information.

For the following reasons, we reverse and remand to the trial court for further proceedings.

A motion for summary judgment should be granted only when the pleadings, depositions, admissions, and affidavits establish there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. (Sons v. Taylor (1991), 219 Ill. App. 3d 923, 925, 579 N.E.2d 1281; see also Breeze v. Payne (1989), 181 Ill. App. 3d 720, 726-27, 537 N.E.2d 453, 458; Cerniglia v. Farris (1987), 160 Ill. App. 3d 568, 572, 514 N.E.2d 792, 794.) The purpose of summary judgment is not to try an issue of fact, but rather to determine whether a triable issue of fact exists. Sloan v. Jasper County Community Unit School District No. 1 (1988), 167 Ill. App. 3d 867, 870, 522 N.E.2d 334, 336.

The use of summary judgment is encouraged under Illinois law as an aid to the expeditious disposition of a lawsuit. (Purtill v. Hess (1986), 111 Ill. 2d 229, 240, 489 N.E.2d 867, 871.) Yet, it is a drastic means of disposing of litigation and should be allowed only when the right of the moving party is clear and free from doubt. (Sons v. Taylor (1981), 219 Ill. App. 3d 923, 925, 579 N.E.2d 1281.) If the facts of a case permit more than one conclusion or inference, including one unfavorable to the movant, the motion should be denied. (Cerniglia v. Farris (1987), 160 Ill. App. 3d 568, 572, 514 N.E.2d 792, 794.) Even if the facts of the case are undisputed, if reasonable persons could draw different inferences from the facts, a triable issue exists. It is only when undisputed facts admit a single inference that the issue becomes one of law. (In re Estate of Jessman (1990), 197 Ill. App. 3d 414, 419, 554 N.E.2d 718, 720-21; Practical Offset, Inc. v. Davis (1980), 83 Ill. App. 3d 566, 570, 404 N.E.2d 516, 520.) Finally, summary judgment is particularly inappropriate where the motive, intent or subjective feelings of the parties are at issue. In re Estate of Jessman (1990), 197 Ill. App. 3d 414, 419, 554 N.E.2d 718, 720-21.

An appellate court reviews summary judgment orders de novo. (Demos v. National Bank (1991), 209 Ill. App. 3d 655, 659-60, 567 N.E.2d 1083

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Bluebook (online)
592 N.E.2d 377, 227 Ill. App. 3d 880, 169 Ill. Dec. 890, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quality-lighting-inc-v-benjamin-illappct-1992.