The Agency, Inc. v. Grove

839 N.E.2d 606, 362 Ill. App. 3d 206, 298 Ill. Dec. 283, 2005 Ill. App. LEXIS 1163
CourtAppellate Court of Illinois
DecidedNovember 16, 2005
Docket2-05-0806
StatusPublished
Cited by19 cases

This text of 839 N.E.2d 606 (The Agency, Inc. v. Grove) 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
The Agency, Inc. v. Grove, 839 N.E.2d 606, 362 Ill. App. 3d 206, 298 Ill. Dec. 283, 2005 Ill. App. LEXIS 1163 (Ill. Ct. App. 2005).

Opinion

PRESIDING JUSTICE O’MALLEY

delivered the opinion of the court:

Plaintiff, The Agency, Inc., filed a complaint against Janet Grove, its former employee, and Accurate AJM, Inc., her current employer, alleging violations of the Illinois Trade Secrets Act (Trade Secrets Act) (765 ILCS 1065/1 et seq. (West 2002)) and of a “Covenant Not to Compete” (Covenant) that Grove signed while employed with plaintiff. Plaintiff alleged that Grove appropriated confidential information while in plaintiffs employ. Plaintiff sought preliminary and permanent injunctions to enforce a confidentiality provision in the Covenant. Plaintiff also sought injunctive relief to enforce the Covenant’s provision prohibiting Grove from competing with plaintiff within 35 miles of its offices for 14 months after the termination of her employment. Finally, plaintiff sought compensatory damages. The trial court determined that the Covenant was unenforceable and denied the request for preliminary injunctive relief. Plaintiff appeals, asking us to reverse the trial court and enter preliminary injunctions enforcing the noncompetition and confidentiality provisions of the Covenant. We find the issue of the enforceability of the 14-month prohibition moot and reverse the judgment of the trial court on the confidentiality provision.

We first explain our finding of mootness. Grove’s employment with plaintiff began on June 20, 2000. The Covenant she signed provided in relevant part:

“1. I acknowledge that [plaintiff] has developed certain business information and methods of operation including but not limited to client lists, client’s temporary and permanent employment needs, client’s hiring qualifications and other preferences, fees charged to clients for services, business methods utilized in the acquisition and servicing of clients, business methods utilized in developing and maintaining sources and supply of skilled and unskilled labor, costs and markups, and other information legally described as ‘trade secrets.’
2. I acknowledge that I will have access to [plaintiff’s] records that include the foregoing business information as well as develop additional such information as part of my job duties. I understand that [plaintiff] has developed the foregoing business information and methods at its expense and utilizes the information to maintain a competitive position within the ind stry, and : aid information has also been determined to be ‘trade secrets.’
3. I acknowledge and understand that the foregoing ‘trade secrets’ and methods are treated by [plaintiff] as confidential and must be protected from disclosure so as to not damage [plaintiffs] competitive position in the industry.
4. I, therefore, agree that I will not, at any time, either while employed by [plaintiff] or afterwards, make any independent use of or disclose to any person, firm or corporation any ‘trade secret’ or methods described above developed by [plaintiff],
5. I agree that if my employment with [plaintiff] is terminated for whatever reason I will not, for a period of fourteen (14) months following the termination of employment, directly or indirectly, work for or engage in any business competitive with [plaintiff], within a thirty-five (35) mile radius of any office of [plaintiff], I also agree that for a period of fourteen (14) months following the termination of employment, I will not call on or solicit any of the clients of [plaintiff] to whom I have rendered services, had contact with, or knowledge of by any reason of my employment with [plaintiff].”

Grove’s final day of employment with plaintiff was August 13, 2004. Ten months later, on June 14, 2005, plaintiff filed its complaint. A hearing on plaintiff’s petition for injunctions began on June 23 and concluded on June 29. The trial court issued its ruling on August 3, and plaintiff filed its notice of appeal on August 16. Briefing was completed on September 26. The 14-month prohibition expired on October 13. (Notably, 10 months alone elapsed between Grove’s final day of employment and the initiation of the lawsuit.) Thus, the issue of the enforceability of that provision is moot. See La Salle National Bank, N.A. v. City of Lake Forest, 297 Ill. App. 3d 36, 43 (1998) (“An issue is moot when its resolution could not have any practical effect on the existing controversy”).

What remains is the issue of whether Grove should be preliminarily enjoined from disclosing or using information that plaintiff claims is confidential. The hearing disclosed the following evidence relative to this issue. Plaintiff is in the business of placing temporary workers in various businesses and has branches in McHenry, West Dundee, Hampshire, and Rochelle. Plaintiff earns its profit by markup, which is the difference between the rates it charges a client for a worker and the rate it pays the worker. Plaintiff employs sales representatives to generate new clients. Grove served as a sales representative in plaintiff’;• McHenry office. Upon leaving plaintiffs employ, Grove told plaintiff S' at she was “retiring” from sales and wanted to spend time with her husband. Instead, Grove began working for Accurate, a competitor of plaintiffs in the temporary staffing business. In her testimony at the hearing, Grove testified that her remark about retiring was just a joke.

Yvonne Graff, plaintiffs operations manager, testified that plaintiff maintains a computer network that is accessible only by password. Plaintiff limits Internet and e-mail availability to branch managers in order to limit the potential for disclosure of confidential information contained on the network. Graff explained that one of the programs on the network is the “Task Generator,” which Graff explained contains profiles of plaintiff’s clients. Graff testified that sales representatives are able to view the client profiles in the Task Generator but are unable to generate printouts, this privilege being reserved to branch managers. Graff testified that the profiles in the Task Generator include a vast array of information on each of plaintiffs clients such as the client’s business cycles (which affect its need for temporary workers), contract expiration dates, the client’s credit information, the client’s personnel preferences, worker placement history, the markups used for the client and the explanations therefor (e.g., intensity of work, risk involved), and the client’s contact persons along with their particular likes, dislikes, and even idiosyncracies. Plaintiff introduced into evidence a printout of a section of the Task Generator containing profiles of seven different clients. Each profile opens with a general description of the client followed by dated entries updating the profile. The following two profiles (redacted by the parties in the trial court for confidentiality) are representative of the seven:

“[1] Customer Profile [ ]
Primarily seasonal temporary outdoor general labor but good employees will be treated as Try-Hire. Temps must have good English language skills — NO TRANSLATORS!
L ] is the parks and facilities manager — most of our job orders will come from him.

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Bluebook (online)
839 N.E.2d 606, 362 Ill. App. 3d 206, 298 Ill. Dec. 283, 2005 Ill. App. LEXIS 1163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-agency-inc-v-grove-illappct-2005.