Security Solutions, Inc. v. Ellebb

2023 IL App (1st) 221946-U
CourtAppellate Court of Illinois
DecidedNovember 3, 2023
Docket1-22-1946
StatusUnpublished

This text of 2023 IL App (1st) 221946-U (Security Solutions, Inc. v. Ellebb) 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
Security Solutions, Inc. v. Ellebb, 2023 IL App (1st) 221946-U (Ill. Ct. App. 2023).

Opinion

2023 IL App (1st) 221946-U No. 1-22-1946 Order filed November 3, 2023 Sixth Division

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ SECURITY SOLUTIONS, INC., ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County. ) v. ) No. 19 CH 08390 ) LAMONT ELLEBB, ) Honorable ) Thomas Donnelly, Defendant-Appellee. ) Judge, Presiding.

PRESIDING JUSTICE ODEN JOHNSON delivered the judgment of the court. Justice C.A. Walker concurred in the judgment. Justice Hyman concurred in part and dissented in part.

ORDER

¶1 Held: Circuit court’s entry of a directed finding in defendant’s favor affirmed where plaintiff failed to supply this court with a complete record and we must conclude that the circuit court’s decision had a sufficient factual basis and that its ruling conforms with the law. We reverse the denial of plaintiff's attorney fee petition and remand for further consideration. We decline to address whether the circuit court should have blue penciled the restrictive covenants contained in the contract as that issue is moot based on our affirmance of the directed finding for defendant. No. 1-22-1946

¶2 Plaintiff Security Solutions, Inc. filed a suit alleging breach of contract, tortious

interference with contract and unjust enrichment against defendant Lamont Ellebb after defendant

opened a competing business. The circuit court entered an order that, among other things, entered

a directed finding in defendant’s favor on its own motion, but also awarded plaintiff sanctions. The

circuit court later denied plaintiff’s entire attorney fee petition. On appeal, plaintiff contends that:

(1) the circuit court incorrectly directed the “verdict” in defendant’s favor; (2) the circuit court

improperly denied plaintiff’s fee petition after awarding plaintiff sanctions; and (3) the circuit court

erred in not “blue penciling” the restrictive covenants contained in the noncompete agreement. For

the following reasons, we affirm in part and reverse in part.

¶3 I. BACKGROUND

¶4 This case has a rather lengthy and somewhat confusing procedural history, complicated

by the fact that defendant was pro se during much of the proceedings and the documents contained

in the record appear to be out of order. That aside, briefly stated, the underlying dispute arose after

plaintiff accused defendant of violating noncompete and non-solicitation clauses contained in a

contract. Plaintiff sells and provides installation for ADT alarm systems. Defendant was a

salesperson associated with plaintiff for many years. However, in 2019, defendant allegedly started

his own competing ADT business while still working for plaintiff and used customer information

gathered from plaintiff in doing so.

¶5 Plaintiff filed its initial verified complaint on July 17, 2019, alleging breach of contract,

tortious interference with the business relationship, and unjust enrichment. A default judgment

was entered against defendant on December 17, 2019, however, Defendant, appearing pro se,

moved to vacate the default on January 24, 2020, which was granted. Defendant subsequently filed

-2- No. 1-22-1946

a pro se motion to dismiss the complaint on January 29, 2020, arguing that he agreed to be a

consultant for plaintiff, not an agent or employee, and that he never signed the 25-year noncompete

agreement. Defendant also indicated that he resigned on or about August 4, 2008, in pursuit of his

own ADT security dealership, which is when he learned of the 25-year noncompete clause and

was denied ownership. He rejoined plaintiff in 2014 under a new agreement as a consultant after

forgiving plaintiff for not dismissing the noncompete agreement. Plaintiff responded to the motion

by filing a joint motion to strike defendant’s motion to dismiss and for default judgment on

February 7, 2020. Defendant subsequently retained counsel, who filed an appearance on February

20, 2020. Plaintiff sought and obtained a partial restraining order against defendant to enjoin him

from utilizing plaintiff’s customer lists on February 25, 2020. Meanwhile, defendant’s verified and

amended combined motion to dismiss the complaint was filed on February 27, 2020, which alleged

that the complaint was defective on its face and substantially insufficient at law. After several more

amended pleadings by both parties, the matter proceeded to a hearing on all open motions on

September 25, 2020, via the Zoom videoconferencing software. The circuit court entered its

written order on October 1, 2020, which struck plaintiff’s breach of contract count with prejudice

as to the 25-year noncompete and non-solicitation clause in the agreement, and the remaining

claims were stricken without prejudice with leave to replead. Plaintiff’s claims for tortious

interference with contract and prospective advantage and injunctive relief were stricken without

prejudice with leave to replead.

¶6 Plaintiff filed its verified amended complaint on October 23, 2020, alleging breach of

written contract, tortious interference with contract, breach of oral agreement, unjust enrichment,

-3- No. 1-22-1946

and tortious interference with affinity partner contract. Defendant responded with a verified motion

to dismiss the amended contract filed on November 20, 2020.

¶7 The case was subsequently transferred to the Law Division on February 24. 2022, and the

parties began discovery. Meanwhile, defendant’s motion to dismiss was set for hearing on July 14,

2022, at which time it was denied and trial was set for September 15, 2022. 1 Plaintiff filed an

emergency motion to compel defendant to comply with discovery on August 19, 2022. That

motion was granted on August 23, 2022, but the court denied plaintiff’s request to strike the trial

date. The court also ordered defendant to file an affidavit of completeness within seven days.

Subsequently, on September 7, 2022, plaintiff filed an emergency motion for contempt and

sanctions against defendant for his failure to comply with any discovery requests. Plaintiff sought

sanctions under Supreme Court Rules 219 and 137 (Ill. S. Ct. R. 219 (eff. July 1, 2002); Ill. S. Ct.

R. 137 (eff. Jan. 1, 2018)). 2 Meanwhile, defendant’s counsel sought to withdraw his representation

on September 8, 2022; that motion was later refiled on September 13, 2022, as an emergency joint

motion to withdraw as counsel or alternately continue trial. On September 16, 2022, the circuit

court entered a written order that provided in pertinent part as follows:

1. Defendant’s counsel’s motion to withdraw was denied.

2. Defendant’s motion for continuance was denied.

3. Plaintiff’s motion for sanctions was granted in full and plaintiff was granted 30 days to

file its attorney fee petition.

1 The initial order indicated that defendant’s motion to dismiss was denied with prejudice but it was corrected to state only that the motion was denied. 2 Rule 219 allows sanctions for failure to comply with discovery while Rule 137 allows sanctions for filing pleadings not grounded in law or fact or that cause unnecessary delay or needless increase in the cost of litigation.

-4- No. 1-22-1946

4.

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2023 IL App (1st) 221946-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/security-solutions-inc-v-ellebb-illappct-2023.