Advantage Marketing Group v. Keane

2019 Ill. App. 181126 (2019)

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Advantage Marketing Group v. Keane

Illinois Appellate Court
2019 Ill. App. 181126 (2019)

Facts

Advantage Marketing Group (AMG) (plaintiff) provided printing and mailing services. AMG’s original founder and employee, James Keane (defendant), was responsible for building customer relationships and making hiring decisions and had access to AMG’s confidential client information. The Mail House was AMG’s competitor. Before resigning from AMG, Keane took steps to acquire Mail House for himself without alerting AMG. Keane withheld information from AMG about Mail House as a possible acquisition target. Keane used one of AMG’s clients as a referral to acquire Mail House. Without AMG’s permission, Keane solicited Keane’s son, who also worked at AMG, to join Keane at Mail House. Keane took samples of AMG’s printing materials and used them at Mail House. AMG would have sought to acquire Mail House if Keane had disclosed that Mail House was an acquisition target. AMG sued Keane for breach of fiduciary duty. Keane motioned to dismiss, arguing that as Keane was a mere employee of AMG, and not an officer or director, AMG failed to allege that Keane was a fiduciary of AMG and thus failed to plead that Keane owed AMG a duty of loyalty. The trial court granted Keane’s motion to dismiss. AMG appealed.

Rule of Law

Issue

Holding and Reasoning (Delort, J.)

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