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New Trade Secret Appellate Decision : Stenstrom v. Mesch

874 N.E.2d 959 (Ill. 2007)

A petroleum industry contractor brought action against project manager formerly employed by contractor and project manager's current employer, alleging breach of a covenant not to compete, violations of Trade Secrets Act and breach of fiduciary duties. The Circuit Court, Winnebago County, Ronald L. Pirrello , J., granted contractor a preliminary injunction to enforce the covenant not to compete but denied other requested injunctive relief. Contractor appealed, and project manager cross-appealed.

The Appellate Court, Callum , J., held that:

(1) covenant not to compete for six months was only enforceable from the date project manager left contractor's employ, not from the date that project manager ceased breaching the covenant, for purposes of a preliminary injunction;
(2) trial court did not abuse its discretion by finding, for purposes of a preliminary injunction, that contractor was unlikely to succeed on its claim that information project manager copied were trade secrets;
(3) trial court did not abuse its discretion by finding, for purposes of a preliminary injunction, that contractor had an adequate legal remedy for the alleged theft of its trade secrets;
(4) contractor waived its breach of fiduciary duty arguments; and
(5) cross-appeal of project manager claiming trial court erred in issuing the preliminary injunction was moot.

Appellate Court of Illinois,
Second District.
STENSTROM PETROLEUM SERVICES GROUP, INC., Plaintiff-Appellant and Cross-
Appellee,
v.
Robert MESCH, Defendant-Appellee and Cross-Appellant
(Precision Petroleum Installation, Inc., Defendant-Appellee).
No. 2-07-0504.
Sept. 7, 2007.

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