Readers of this blog know that long settled understandings regarding what constitutes adequate consideration for a restrictive covenant in Illinois were turned upside down when the First District Appellate Court in Illinois held in Fifield v. Premier Dealer Services Inc., 2013 IL App. (1st) 120327 that, absent other consideration, two years of employment are required for a restrictive covenant to be supported by adequate consideration, regardless of whether the covenant was signed at the outset of employment or after, and regardless of whether the employee quit or was fired.The Illinois Supreme Court declined to hear Fifield, but at least three federal district court judges in Illinois have refused to apply Fifield.Just recently, another federal district court judge in Illinois also refused to apply Fifield. This time it was Judge Robert M. Dow, Jr., who held in Traffic Tech, Inc. v. Kreiter, Case No. 14-CV-7528 (N.D. Ill. Dec. 18, 2015), that the “Illinois Supreme … [Read more...] about Another Federal District Court Judge In Illinois Refuses To Apply Illinois Appellate Court’s Fifield Decision
Illinois
Illinois Appellate Court Strikes Down Overbroad Noncompete, Nonsolicit, and Confidentiality Provisions and Also Refuses to Judicially Modify Them
In a decision issued in late October, AssuredPartners, Inc. et al. v. William Schmitt, 2015 IL App. (1st) 141863 (Ill. App. 2015), the Illinois Appellate Court struck down as overbroad and unreasonable, the noncompete, nonsolicit and confidentiality provisions in an employment agreement. The Court then refused to judicially modify or “blue pencil” these provisions because the Court deemed their deficiencies “too great to permit modification.” This decision is essentially a primer on current Illinois law regarding restrictive covenants and confidentiality agreements.Starting with the noncompetition provision at issue, the Court held that it was overbroad because it restricted the former employee, a wholesale insurance broker of lawyers’ professional liability insurance, from a broader scope of activities than those he engaged in during his employment (i.e., it prohibited him from working with all types of professional liability … [Read more...] about Illinois Appellate Court Strikes Down Overbroad Noncompete, Nonsolicit, and Confidentiality Provisions and Also Refuses to Judicially Modify Them
Restrictive Covenants in Illinois: Is Fifield’s holding holding?
A couple years ago, the Illinois First District Appellate Court decided the case of Fifield v. Premier Dealer Services, 2013 IL App. 120327. There, the Court held that, absent other consideration, two years of employment are required to constitute adequate consideration for a restrictive covenant, regardless of whether the covenant was signed at the outset of employment or after, and regardless of whether the employee quit or was fired. Since then, some Judges in the United States District Court for the Northern District of Illinois have applied Fifield, and others have declined to do so.Earlier this week, the United States Court of Appeals for the Seventh Circuit issued its first opinion reviewing a decision in which the District Court applied, or refused to apply, Fifield: Instant Technology LLC v. DeFazio, (Case Nos. 14-2132 & 14-2243). In the District Court, Judge Holderman applied Fifield. In its opinion, however, … [Read more...] about Restrictive Covenants in Illinois: Is Fifield’s holding holding?
Illinois Takes Consumer-Friendly Approach to Daily Fantasy Sports Regulation
Illinois is one of the latest states to initiate potential legislation involving daily fantasy sports (DFS). Like a number of other states, it is not declaring DFS illegal. Rather, it is taking a very consumer protection focused approach. According to Rep. Mike Zalewski (D, Ill.), the forthcoming legislation would create standards for auditing daily fantasy companies that do business in Illinois and prohibit fantasy sports operator employees from playing in contests on other sites, in addition to other potential restrictions.While some debate whether DFS is gambling, a number of states are mooting that debate by drafting legislation that exempts fantasy sports from the gambling laws. In 2012, Maryland passed a law exempting certain fantasy sports competitions from Maryland’s gambling laws. Earlier this year, Kansas passed a similar law. Nevada recently took a strong stance and declared that licensing is required. At least some states are trying to take a more … [Read more...] about Illinois Takes Consumer-Friendly Approach to Daily Fantasy Sports Regulation
Man Plans to Sue Illinois After 1957 Cold Case Conviction Overturned
Jack McCullough, the man convicted in 2012 for the 1957 murder of Maria Ridulph, spoke to reporters in a telephone interview over the weekend while enjoying his first few days as a free man in almost five years, according to an article in the Chicago Tribune.McCullough told reporters that he was not worried when investigators came looking for him in 2011, because he knew he was innocent.“I know I didn’t do it,” McCullough said.He then described the long days after his conviction, writing letters to anyone who would listen while locked inside an 11-by-5-foot cell. McCullough said many of his letters went unanswered.The worst part, however, according to McCullough was the toll the conviction took on his family and that is why he wants the state of Illinois held responsible.“They didn’t just punish me — they punished … my whole family,” McCullough said. “I want the state to be (held) responsible.”A judge on Friday … [Read more...] about Man Plans to Sue Illinois After 1957 Cold Case Conviction Overturned