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Articles Posted in Illinois Appellate Courts

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Improperly Canceled Auto Insurance Policy Means Insurer Has Duty to Defend Driver in Accident, Appeals Court Rules

In an unusual Illinois insurance fraud lawsuit, the First District Court of Appeal has ruled that two insureds are entitled to attorney fees, sanctions and other relief under section 155 of the Illinois Insurance Code. Siwek v. White, No. 1-07-2600 (Ill. 1st Feb. 27, 2009) pits drivers Christine Siweck and…

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Scope of Injunctions Enforcing Restrictive Employment Covenants Must Be Clear, Fourth District Decides

Our Illinois noncompete clause attorneys recently noted an important case addressing the standards for a preliminary injunction in Illinois lawsuits over covenants not to compete. In Lifetec, Inc. v. Edwards, No. 4-07-0300 (Ill. 4th Nov. 6, 2007), Lifetec sued former salesman Peter Edwards for breach of three restrictive covenants in…

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First District Rules Plaintiff Not Entitled to Punitives in Noncompete Clause Lawsuit

  An interesting case involving enforcement of an employment contract’s restrictive covenant was recently noted by our Illinois covenant not to compete attorneys. Cambridge Engineering Inc. v. Mercury Partners 90 BI, Inc., No. 1-06-0798 (Ill. 1st Dec. 7, 2007). The suit stems from an earlier lawsuit concluded in Missouri in…

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Hardship to Former Employee Should Be Considered Outside Motion to Dismiss, First District Rules

  A First District Court of Appeal ruling had an interesting lesson for our Chicago noncompete clause attorneys. In Baird and Warner Residential Sales Inc. v. Mazzone, No. 1-07-2179 (Aug. 15, 2008), the First ruled that a trial court needed more evidence in a dispute about a covenant not to…

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Illinois Trade Secrets Act Does Not Preempt Breach of Fiduciary Duty Claims, First District Rules

  Our Chicago trade secrets litigation lawyers were interested to see a recent case pitting a school bus company in Cook County against competitors and former employees. Alpha School Bus Company, Inc. v. Wagner, No. 1-06-3427 (Ill. 1st May 15, 2009). Alpha is owned by Cook-Illinois Corporation (collectively “Alpha”), which…

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Appeals Court Upholds Injunction Enforcing Salesman’s Covenant Not to Compete

  A recent decision by the Fourth District Court of Appeal caught the eyes of our Illinois non-compete agreement attorneys because it created a split with other Courts of Appeal that only the Illinois Supreme Court can resolve. In September, the Fourth ruled that a trial court was correct to…

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Appeals Court Decides Client May Sue Insurance Broker for Taking Kickbacks From Insurers

  In a proposed class action insurance fraud lawsuit, the Illinois First District Court of Appeal has ruled that a former client may sue an insurance broker for inflating the cost of its insurance policies with “kickbacks.” DOD Technologies v. Mesirow Insurance Services Inc., No. 1-06-3300 (Ill. 1st Feb. 14,…

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Financial Consultant Did Not Breach Fiduciary Duty to Bank Takeover Candidate, Appeals Court Rules

  A trial court was correct to find for defendants in a breach of fiduciary duty and constructive fraud lawsuit, the First District Court of Appeal ruled March 20. In Prodromos v. Everin Securities Inc., No. 1-06-3685 (1st. Dist. March 20, 2009), plaintiff John Prodromos sued Everin Securities, Inc., its…

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Fiduciary Shield Doctrine Does Not Apply When Fiduciary Is Motivated By Personal Interests, First District Says

  A trial court may have personal jurisdiction over a defendant outside Illinois, but only if it can determine that the defendant’s alleged tort was motivated for personal reasons, the First District Court of Appeal has ruled. Femal v. Square D Company, No. 1-07-1990 (Ill. 1st Jan. 29, 2009). The…

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Business Liable for Notary’s Misconduct Under Common Law But Not Statute, First District Rules

  In a case of first impression, the Illinois First District Court of Appeal has ruled that copy shop Kinko’s may not be held liable under the Illinois Notary Public Act for misconduct by a notary it employed, but may be held liable for common-law negligence. In Vancura v. Katris,…

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