Savis, Inc. v. Khoury

2023 IL App (2d) 230083-U
Appellate Court of Illinois·Decided December 19, 2023·No. 2-23-0083·Unpublished

Opinion

No. 2-23-0083

Order filed December 19, 2023

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(l).

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

SAVIS, INC., TRIPLE TAKE LAWN CARE, ) Appeal from the Circuit Court INC., and STATE JEWELERS & LOAN, ) of Lake County. INC., )

)

Plaintiffs-Appellants and )

Cross-Appellees, )

v. ) No. 17-CH-683 )

ANTOINE KHOURY, JOHN KHOURY, ) AMANDA KHOURY, ANSHUL MANGAL, ) PROJECT FARMA, LLC, PROJECT ) FARMA, INC., ELEVATED SPECIALTY ) SERVICES, LLC, BIZBOT, LLC, AVEXIS, ) INC., SCOTT BERTCH, GREG GARA, ) SARAH STOLL, ZACHARY LUCE, KYLE ) WU, NICHOLAS WEINREICH, ) KATHERINE THOMAS, RYAN LIMBO, ) CORY PROCTOR, NATHAN TRAUGHBER, ) WEINREICH INDUSTRIES, LLC, and CORY ) PROCTOR, LLC, )

)

Defendants )

)

(Antoine Khoury, John Khoury, Project Farma, ) Honorable LLC, and Project Farma, Inc., Defendants- ) Daniel L. Jasica, Appellees and Cross-Appellants). ) Judge, Presiding.

JUSTICE BIRKETT delivered the judgment of the court.

Presiding Justice McLaren and Justice Jorgensen concurred in the judgment.

ORDER

¶1 Held: We affirm in all respects the trial court’s judgment regarding issues arising from its entry of judgment in favor of defendants and against plaintiffs following a bench trial and its disposition of defendants’ motion for attorney fees and costs.

¶2 Plaintiffs, Savis, Inc. (Savis), Triple Take Lawn Care, Inc. (Triple Take), and State Jewelers & Loan, Inc. (State Jewelers) (collectively plaintiffs), appeal the trial court’s orders denying Savis’s motions for leave to file a second amended complaint and to amend the first amended complaint to conform to the proofs. Plaintiffs further argue that the trial court: (1) failed to properly find that defendants and counter-appellants Antoine Khoury (Tony), John Khoury (John), Project Farma, LLC, and Project Farma, Inc. 1 (collectively defendants) owed Savis a fiduciary duty; (2) failed to appreciate that Savis proved damages stemming from defendants’ allegedly tortious conduct; and (3) abused its discretion in prohibiting Savis from introducing certain relevant evidence at trial.

¶3 In their cross-appeal, defendants argue that the trial court erred in: (1) refusing to “award defendants attorney’s fees pursuant to the Illinois Trade Secrets Act (Act) [(765 ILCS 1065/1 et seq. (West 2018))];” and (2) in awarding defendants “only a portion of their costs.” We affirm.

¶4 I. BACKGROUND

¶5 We summarize the relevant facts. Savis is an “engineering consulting firm” whose clients include “pharmaceutical and biomedical companies seeking to obtain Federal Drug Administration

1 According to portions of the record, it does not appear as if Project Farma, Inc. currently

exists. Because the parties seemingly refer to Project Farma, LLC, and Project Farma, Inc. interchangeably, for the sake of clarity, we refer to both entities simply as “Project Farma.”

*** approvals.” Joseph Daou is an owner and president of Savis. Daou also owned Triple Take, a “lawn care services business,” as well as State Jewelers, a pawn and jewelry shop.

¶6 On May 11, 2017, plaintiffs filed their 12-count complaint for injunctive and other relief against 20 different defendants. On May 3, 2018, plaintiffs amended their complaint, which now contained the following ten counts against a total of 21 defendants: (1) Savis’s claim of tortious interference with businesses relationships and expectancies against Tony, John, Amanda Khoury2 (Amanda), Anshul Mangal, and Project Farma (count I); (2) Savis’s claim of breach of fiduciary duty claim against John and Tony (collectively the Khoury brothers) (count II); (3) Savis’s claim of a violation of the Act against the Khoury brothers, Mangal, and Project Farma (count III); (4) Savis’s claim of conversion against the Khoury brothers, Amanda, Elevated Specialty Services, LLC (Elevated), and Bizbot, LLC (Bizbot) (count IV); (5) Savis’s claim of breach of noncompetition agreement against Sarah Stoll, Zachary Luce, Kyle Wu, Nicholas Weinreich, Katherine Thomas, Ryan Limbo, Cory Proctor, Nathan Traughber, Weinreich Industries, LLC, and Cory Proctor, LLC (count V); (6) Savis’s breach of contract claim against AveXis (count VI); (7) Savis’s claim of tortious interference with contracts, business relationships, and expectancies claim against AveXis (count VII); (8) Triple Take’s conversion claim against John and Amanda (count VIII); (9) State Jeweler’s conversion claim against John and Amanda (count IX); and (10) Savis’s, Triple Take’s, and State Jewelers’ civil conspiracy claim against the Khoury brothers, Amanda, Scott Bertch, and Greg Gara (count X). 3

2 Amanda is John Khoury’s wife.

3 Amanda, Mangal, Elevated, Bizbot, AveXis, Bertch, Gara, Stoll, Luce, Wu, Weinreich,

Thomas, Limbo, Proctor, Traughber, Wenrich Industries, LLC, and Cory Proctor, LLC, are not

¶7 In the complaint, plaintiffs alleged that the Khoury brothers were “engineers who worked for Savis, both holding trusted senior leadership positions as [m]anaging [d]irectors.” According to plaintiffs, John also spearheaded Savis’s information technologies department, giving him “full access to all of Savis’[s] confidential and proprietary information.” John’s position also purportedly required him to hire additional engineers, complete sales, execute agreements, manage projects, and communicate with clients.

¶8 Tony, according to the complaint, helped develop “confidential proposals” and drafted feasibility studies.” Additionally, he helped with engineering tasks, procured and supplied equipment, worked on installations, completed project management services, and also hired other engineers. Like John, Tony had “full access to Savis’[s] confidential and proprietary information,” including Savis’s client lists.

¶9 Plaintiffs alleged that, in February 2016, “Savis entered into a consulting agreement with pharmaceutical company AveXis, Inc., 4 under which Savis would provide engineering services.” At this time, both Khoury brothers worked extensively with AveXis, and, along with Amanda, they “form[ed] close personal relationships with key [AveXis] employees[ ] Greg Gara (Director of Technical Operations) and Scott Bertch (Director of Validation).”

¶ 10 Plaintiffs alleged that the Khoury brothers attempted to utilize their close relationship with AveXis as a bargaining chip in a bid to gain an ownership interest in Daou’s three businesses. However, Daou rejected the Khourys’ requests for an increased stake in his companies, leading

parties to the instant appeal.

4 In other portions of the record, this company is sometimes styled as “Avexis.” For the

sake of uniformity, we will refer to the business simply as “AveXis.”

the Khoury brothers to conspire “to sabotage Savis’ work at AveXis.” Specifically, plaintiffs alleged that the Khoury’s plotted to take AveXis’s and other clients’ business “to a competing enterprise [subsequently] formed by John Khoury, Amanda Khoury, Tony Khoury[,] and/or Anshul Mangal,” who was a longtime friend of the Khoury brothers. As part of their purported plot, the Khourys allegedly “converted Savis funds” “to further enhance their relationships with key AveXis employees[]and other Savis clients.” John “abruptly resigned” from Savis “on or about August 5, 2016,” after having “verbally threatened to devastate and sabotage the Savis business and other businesses owned by *** Daou.” After having left Savis, John purportedly “retained a laptop computer on which, upon information and belief, he had downloaded Savis’[s] confidential proprietary information and trade secrets,” including Savis’s library of standard operating procedures (SOPs).

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Savis, Inc. v. Khoury, 2023 IL App (2d) 230083-U (Ill. Ct. App. 2023).

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