Total Staffing Solutions, Inc. v. Staffing, Inc.

2023 IL App (1st) 220533
CourtAppellate Court of Illinois
DecidedJune 23, 2023
Docket1-22-0533
StatusPublished
Cited by2 cases

This text of 2023 IL App (1st) 220533 (Total Staffing Solutions, Inc. v. Staffing, Inc.) 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
Total Staffing Solutions, Inc. v. Staffing, Inc., 2023 IL App (1st) 220533 (Ill. Ct. App. 2023).

Opinion

2023 IL App (1st) 220533 No. 1-22-0533 June 23, 2023 Sixth Division ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST DISTRICT ______________________________________________________________________________ TOTAL STAFFING SOLUTIONS, INC., an Illinois ) Corporation, and QUALIFIED FOOD STAFFING ) SERVICES, INC., an Illinois Corporation, ) Appeal from the Circuit Court ) of Cook County, Illinois. Plaintiffs-Appellants, ) ) No. 2018 CH 04399 v. ) ) The Honorable STAFFING, INC., d/b/a Staff Illinois; MARY THERESE ) Patrick J. Sherlock, BRAZIER; THOMAS KELLY; and JOSE SIMENTAL, ) Judge, Presiding. ) Defendants-Appellees. ) )

JUSTICE C.A. WALKER delivered the judgment of the court, with opinion. Justices Oden Johnson and Tailor concurred in the judgment and opinion.

OPINION

¶1 Plaintiffs Total Staffing Solutions, Inc. (“Total Staffing”), and Qualified Food Staffing

Services, Inc., filed a complaint for preliminary and permanent injunctive relief and damages

against defendants Staffing, Inc., d/b/a Staff Illinois, Mary Therese Brazier, Thomas Kelly, and

Jose Simental. The complaint alleged, inter alia, that defendants (1) violated the Illinois Trade

Secrets Act (765 ILCS 1065/2 (West 2018)), (2) violated the Consumer Fraud and Deceptive No. 1-22-0533

Business Practices Act (815 ILCS 505/2 (West 2018)), and (3) tortiously interfered with a

prospective economic advantage. After a bench trial, the circuit court entered judgment in favor of

defendants and against Total Staffing. On appeal, Total Staffing argues that (1) the circuit court’s

judgment on count I claim of a Trade Secrets Act violation should be reversed, (2) the circuit court

abused its discretion in admitting Marty Lally’s hearsay testimony at trial, and (3) the circuit

court’s judgment on count III claim of a Consumer Fraud and Deceptive Business Practices Act

violation and count IV claim of tortious interference with a prospective economic advantage

should be reversed. We affirm the circuit court’s judgment because the court’s conclusions were

not against the manifest weight of the evidence, where the evidence supported a finding that

defendants did not (1) violate the Illinois Trade Secrets Act, (2) violate the Consumer Fraud and

Deceptive Business Practices Act, or (3) tortiously interfere with a prospective economic

advantage. We further hold the circuit court did not abuse its discretion in admitting testimony that

was not offered for the truth of the matter asserted.

¶2 I. BACKGROUND

¶3 In 1997, Vincent Gallelli, John Falvey, and Craig Kelly formed Total Staffing. Total

Staffing is a staffing agency that provides temporary workers to companies in the Chicagoland

area. As of 2018, Total Staffing had six branch offices located in Illinois. Defendants are former

employees of Total Staffing. Craig, who served as the President of Total Staffing, hired his mother,

Mary Therese Brazier, in 1997. Mary resigned from her position on February 18, 2018. Total

Staffing employed Craig’s younger brother, Thomas Kelly, from 2000 to 2014. Thomas returned

to Total Staffing in 2016 and later resigned on February 16, 2018. Total Staffing hired Jose

Simental in 1999, and he resigned on July 20, 2016. Craig passed away on January 7, 2018. On

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February 19, 2018, Thomas and Mary incorporated Staff Illinois, a staffing agency that provides

temporary staffing services within the Chicagoland area. After a meeting with Thomas and Mary,

Jose agreed to join Staff Illinois on February 24, 2018.

¶4 On April 4, 2018, Total Staffing filed a seven-count complaint for preliminary and

permanent injunctive relief and damages against Staff Illinois, Mary, Thomas, and Jose. On April

15, 2019, Total Staffing filed a first amended complaint raising two additional counts. Defendants

filed a motion to dismiss counts I through IV and VI through IX. On July 6, 2020, the court granted

defendants’ motion to dismiss as to counts II, VI, VII, VIII, and IX. On August 24, 2020, Total

Staffing filed a second amended complaint. Relevant here, under count I of the complaint, Total

Staffing alleged defendants violated the Illinois Trade Secrets Act (765 ILCS 1065/2 (West 2018)).

Under count III, Total Staffing alleged defendants violated the Consumer Fraud and Deceptive

Business Practices Act (815 ILCS 505/2 (West 2018)). Under count IV, Total Staffing alleged that

defendants tortiously interfered with a prospective economic advantage when they made

misrepresentations to Marty Lally, an officer of Hometown Bagel, and converted the employment

of Total Staffing’s employees working at Hometown Bagel to Staff Illinois.

¶5 The complaint alleged “the lifeblood of [Total Staffing]” relies on the knowledge of the

identities and characteristics of its customers. This knowledge included

“the businesses the customers are in, the number of temporary employee placements they

have historically required, the amount they have to spend, the skill sets and types of

workers they need, idiosyncratic preferences of their managements from a servicing

standpoint, the seasonal cycles of their businesses, and their locations in proximity to pools

of workers who can fill their needs.”

-3- No. 1-22-0533

Total Staffing also relies on the identities and characteristics of its temporary workers. This

includes knowledge of “workers who have been trained in the skill sets particular customers need,

in the quantities those customers need them, and living within close proximity to those customers,

especially workers who fit that description and have a long-standing history working at the

particular customer site.” Total Staffing stores its customer information on two computer

databases, called Ultra 32 and Act!, and stores temporary employee information on the Ultra 32

database. These databases are on a secured server at Total Staffing’s Naperville office.

¶6 Total Staffing claimed defendants were aware of the information in the Ultra 32 and Act!

and used the information to identify and solicit business from seven Total Staffing customers,

including Hometown Bagel, Accurate Partitions, Midland Metal Products, Bevolution, Golden

Country, Scientific Solutions, and Royal Envelope. Total Staffing also asserted defendants used

the information to “find an immediately accessible workforce, how much to pay it, and how much

to charge the customer” to maintain a competitive advantage.

¶7 The case proceeded to a bench trial. Deandra Huerta testified she began working as the

office manager at Total Staffing in 2003 and was later promoted to business manager. Thomas,

Mary, and Jose also worked at Total Staffing. According to Deandra, Mary was a sales manager

and “dealt with clients, she worked with the branches and the manager at the branch to make sure

that the clients were being taken care of and their needs were being met.” Thomas “oversaw the

safety workers’ compensation, unemployment at the organization.” Thomas left Total Staffing in

2014 but returned in 2016. When he returned, Thomas continued to “manag[e] our work comp

claims.” Deandra explained “we would all kind of go to [Thomas] for issues or concerns or things

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2023 IL App (1st) 220533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/total-staffing-solutions-inc-v-staffing-inc-illappct-2023.