221 F.3d 1338 (7th Cir. 2000), 98-3040, Mader v. Motorola, Inc.

Docket Nº:98-3040.
Citation:221 F.3d 1338
Party Name:Douglas P. MADER and Darla Mader, Plaintiffs-Appellants, v. MOTOROLA, INC. Mikel J. Harry, and Betty Crofton, Defendants-Appellees.
Case Date:July 25, 2000
Court:United States Courts of Appeals, Court of Appeals for the Seventh Circuit

Page 1338

221 F.3d 1338 (7th Cir. 2000)

Douglas P. MADER and Darla Mader, Plaintiffs-Appellants,

v.

MOTOROLA, INC. Mikel J. Harry, and Betty Crofton, Defendants-Appellees.

No. 98-3040.

United States Court of Appeals, Seventh Circuit

July 25, 2000

Editorial Note:

This opinion appears in the Federal reporter in a table titled "Table of Decisions Without Reported Opinions". (See FI CTA7 Rule 53 regarding use of unpublished opinions)

Submitted Sept. 21, 1999.

Appeal from the United States District Court for the Northern District of Illinois, Eastern Division. No. 92 C 8089. Blanche M. Manning, Judge.

Before Hon. WILLIAM J. BAUER, Hon. KENNETH F. RIPPLE, and Hon. DIANE P. WOOD, Circuit Judges.

ORDER

This case has been fraught with procedural errors from the beginning, but despite all that it is now in a position to be decided once and for all on the merits. It concerns a contractual arrangement between plaintiff Douglas Mader and defendant Motorola, Inc., under which Mader was to work as a research consultant at Motorola's Six Sigma Research Institute (SSRI). Mader worked under written consulting agreements, the first of which was executed on May 1, 1990. In 1992, Motorola terminated its current contract with Mader (the 1992-93 agreement), on the stated ground that Mader had breached its security policy. Mr. and Mrs. Mader sued Motorola and the two individual defendants, Mikel Harry and Betty Crofton, in Illinois state court. Motorola removed the case to federal court on diversity grounds. The district court granted summary judgment for Motorola. Mader v. Motorola, No. 92-C-8089, 1998 WL 164880 (N.D.Ill. April 3, 1998). After various proceedings that we review below, the case is now properly before us, and we affirm.

Before recounting the facts briefly, it is important to put them in context. In the district court, Motorola filed a motion for summary judgment on all counts of the Maders' amended complaint. It supported that motion with a statement of uncontested facts under the then-applicable General Rule 12(M) of the Northern District of Illinois. Despite a number of requests and warnings, the Maders never filed the required responsive statement under Rule 12(N). The district court therefore ruled, as it was entitled to do, that the Maders had admitted the facts in Motorola's Rule 12(M) statement. See Waldridge v. American Hoechst Corp., 24 F.3d 918, 921-22 (7th Cir.1994) (discussing Indiana's similar Local Rule 56.1); Best v. Shell Oil Co., 107 F.3d 544, 547 (7th Cir.1997) (taking Rule 12(M) facts as admitted when plaintiff failed to file Rule 12(N) response). Our account of the facts similarly relies on Motorola's Rule 12(M) statement, as the Maders' failure to respond has the effect of making those facts uncontested.

Mader worked for Motorola's SSRI under a written consulting agreement; Mrs. Mader did not work for Motorola either as an employee or a contractor. SSRI, though part of Motorola, Inc.'s research division, was a consortium of six companies including Motorola, each of which contributed funds or personnel (or both) to SSRI. As part of Motorola, however, Motorola's corporate security policies applied to it. Dr. Harry was SSRI's director between April 1990 and May 1993, and Ms. Crofton was SSRI's Project Manager. It was Crofton's responsibility to ensure that all personnel at SSRI followed Motorola's policies and security regulations.

Mader's first agreement with Motorola ran from May 1, 1990, to April 30, 1991; it was accompanied by a Non-Disclosure Agreement that required Mader to "comply with all security regulations in effect from time to time at Motorola's premises, and externally for materials belonging to Motorola or to the project." The 1990-91 agreement required Mader to perform various research, consultation, design and development services for SSRI, involving both text and software. The agreement also contained an integration clause specifying that there were no other agreements, oral or written, between the parties, and that any subsequent agreements had to be in writing and signed by both parties.

The 1990-91 agreement was extended for a second year on April 29, 1991, by a new written agreement that was to run from May 1, 1991, through April 30, 1992; that agreement too had a non-disclosure agreement appended to it, which Mader signed. On February 12, 1992, he signed an amendment to the agreement that extended both the basic consulting agreement and the non-disclosure agreement to...

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