S.W. Coe & Co. v. Douglass

• Citation: 78 N.E.2d 818,334 Ill.App. 195
• Decision Date: 04 May 1948
• Docket Number: Gen. No. 9581.
• Parties: S. W. COE & CO. v. DOUGLASS.
• Court: United States Appellate Court of Illinois

334 Ill.App. 195

78 N.E.2d 818

S. W. COE & CO.

v.DOUGLASS.

Gen. No. 9581.

Appellate Court of Illinois, Third District.

March 12, 1948.

Rehearing Denied May 4, 1948.

Appeal from Circuit Court, Morgan County; L. E. Wilhite, Judge.

Suit by S. W. Coe & Co., a corporation, against Donald M. Douglass to enjoin defendant from disclosing information obtained while he was employed by plaintiff and for other relief. From an adverse judgment, plaintiff appeals.

Reversed and remanded with directions.Wilson & Wright and Vaught, Robinson & Foreman, all of Jacksonville, for appellant.

Bellatti, Arnold & Fay and Edward J. Flynn, all of Jacksonville, for appellee.

HAYES, Justice.

Plaintiff, S. W. Coe & Company, employed defendant Donald M. Douglass, in its small loan business under a contract which provided among other things that defendant was to be paid $150 per month, ‘said sum to be subject to such modification or changes as the employer may deem necessary, expedient or merited by the employee * * *’. The contract further provided that defendant was not to divulge information concerning ‘earnings, finances, loans, method of operation, systems or records of the employer; or the bulletins, reports, manuals of instructions or orders; or the names of the past, present or prospective borrowers, endorsers, sureties, security-holders, business customers or associates of the employee.’ Defendant further agreed that after termination of his employment, he would not in any way directly or indirectly ‘engage in any business competitive with that of his employer in any city or county within fifty miles of any office of his employer for a period of two years after the termination of his employment for any cause.’ Defendant was employed by plaintiff from October 1, 1945 to January 6, 1947. On the latter date defendant entered the employ of a competitor of plaintiff in the City of Jacksonville.

Plaintiff filed suit in January of 1947 in the Circuit Court of Morgan County seeking to enjoin defendant from disclosing information obtained while he was employed by plaintiff and from engaging in any competitive business until January 6, 1949. Defendant filed a motion to strike which was sustained by the Court and the cause was dismissed for want of equity. Plaintiff has appealed to this Court.

Defendant argues her that plaintiff has failed to allege facts which show that unless the injunction were granted, plaintiff would suffer irreparable loss. His motion to strike...