Reinhardt Printing Co. v. Feld

490 N.E.2d 1302, 142 Ill. App. 3d 9, 96 Ill. Dec. 97, 1986 Ill. App. LEXIS 2025
CourtAppellate Court of Illinois
DecidedJanuary 31, 1986
Docket85-2006
StatusPublished
Cited by46 cases

This text of 490 N.E.2d 1302 (Reinhardt Printing Co. v. Feld) 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
Reinhardt Printing Co. v. Feld, 490 N.E.2d 1302, 142 Ill. App. 3d 9, 96 Ill. Dec. 97, 1986 Ill. App. LEXIS 2025 (Ill. Ct. App. 1986).

Opinion

PRESIDING JUSTICE SULLIVAN

delivered the opinion of the court:

Defendant brings this interlocutory appeal from the issuance of a preliminary injunction restraining her from violating certain post-employment noncompetition and nondisclosure covenants contained in an employment agreement with plaintiff, Reinhardt Printing Company.

The record discloses that plaintiff is a small commercial printing company doing business primarily in the downtown area of Chicago. On March 7, 1983, defendant and Jack Reinhardt, then-president of plaintiff, signed a written “memorandum of agreement” which provided:

“In consideration of my employment by [plaintiff] and the continuance of such employment by [plaintiff], and the payment of my compensation as its employee and of entrusting to me by [plaintiff] of confidential information relative to the manufacture of printing and to its customers, I agree with [plaintiff] as follows:
(1) I agree that I will not divulge to others any information I may obtain during the course of my employment relating to the products, customers, prospective customers, sales information, trade secrets ideas, etc. of [plaintiff], whether contributed by me or not, without first obtaining written permission of [plaintiff] to do so.
(2) I further agree that all records of every nature and description which come into my possession during my employment with [plaintiff] whether prepared by me or otherwise, are and remain the property of [plaintiff], and upon termination of my employment with [plaintiff], said records shall be left with [plaintiff] as part of its property.
(3) I further agree that upon termination of employment I shall not, for a period of one (1) year, either directly or indirectly:
(a) Sell or attempt to sell printing to any firm to which I sold or solicited printing while in the employ of [plaintiff].
(b) Induce or attempt to induce any of the Company’s customers not to do business with the Company.
(c) Induce or attempt to induce any of the Company’s employees to terminate their relationship with the Company.”

Defendant voluntarily terminated her employment with plaintiff on Friday, May 31, 1985, and began working as a salesperson for Anchor Graphics, another commercial printing company, also in downtown Chicago, the following Monday — June 3. On June 4, plaintiff filed its complaint-and motion for injunctive relief.

At the hearing thereon, James Reinhardt — Jack Reinhardt’s son and plaintiff’s current president — testified that defendant’s initial contact with plaintiff was through Doug Wyman, an outside hiring consultant it had retained, for a fee of $3,000, to interview and screen applicants for the sales position it had advertised and to thereafter provide sales training to the person eventually hired. When interviewed, defendant stated that she had no experience in commercial printing sales but had been working as a salesperson for a wholesale envelope supplier and indicated that she could procure as customers various firms to which she sold envelopes; however, except for one publishing company, she did not do so. She was given a copy of the employment agreement the day before she was hired so that she could look it over and show it to an attorney if she wished. She expressed no objections to its terms at either the time she signed it or any time thereafter. Upon being hired, defendant underwent a training program which included two days “in the field” with Wyman — at an additional cost of $600 — making random sales calls on downtown businesses, two of which resulted in orders, and two weeks “in-house” training which consisted of visiting plaintiffs various departments to view and learn all aspects of its business including production processes and sales techniques. Plaintiff also paid defendant’s trade association dues and reimbursed her 50% of the costs of two courses she took at the Printing Industry Institute.

Reinhardt further testified that although defendant was hired only to procure new accounts, some “house accounts” normally handled by him or his father were eventually turned over to her. He identified 25 of 76 firms on a list prepared by defendant as either such “house accounts” or,were customers which she was given company assistance in finding and/or developing. Throughout her employment, defendant had access to confidential information relating to specific customer identities and production methods as well as the raw data on costs and profit margins used in estimating price quotations, all of which was confidential information accumulated by plaintiff over a long period of time. When she submitted her termination notice on Tuesday, May 28, 1985, to be effective Friday, May 31, 1985, she acknowledged having signed the employment agreement at issue, but was “vague” in her response to his inquiry concerning her intention to honor it. The following Monday, defendant began working for Anchor Graphics, a direct competitor of plaintiff, and that day called on at least one of its customers to distribute her new business cards.

On cross-examination, Reinhardt stated that he was aware of defendant’s educational and practical background in marketing and sales at the time she was hired, noting that it was a factor in the decision to do so. He also acknowledged that her assent to the terms of the employment agreement was a nonnegotiable condition of employment; that except for the accounts she personally serviced and those that were discussed with her, defendant would not necessarily know the identity of all of plaintiff’s other customers; that customers often do business with more than one printer; that Anchor Graphics produces four-color printing whereas plaintiff is not equipped to do so — specializing in one and two color materials — and must send out any orders for more than two color items; and that plaintiff does not do typesetting.

Defendant testified that she earned a bachelor’s degree in marketing and sales and took two courses at the Printing Industry Institute— the first a sales course she completed before being hired by plaintiff and the other a course on graphic techniques which she completed a few weeks thereafter. Upon graduating from college, defendant took a job with Accujet Corporation, a wholesale envelope supplier, where she worked in production, purchasing and sales. During her nine-month employment there, she became familiar with between 10 and 20 of plaintiff’s customers, having supplied plaintiff with envelopes for their orders.

She was not given the opportunity to review or negotiate the terms of the employment agreement, having signed it when Jack Reinhardt presented it to her the day she was hired, and although she did not feel it was fair, she voiced no objections to it.

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Bluebook (online)
490 N.E.2d 1302, 142 Ill. App. 3d 9, 96 Ill. Dec. 97, 1986 Ill. App. LEXIS 2025, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reinhardt-printing-co-v-feld-illappct-1986.