Documente Academic
Documente Profesional
Documente Cultură
No. 3-17-0803
Pam's Academy of Dance/Forte Arts Appeal from the Circuit Court of the
Center, Thirteenth Judicial Circuit, Grundy
County, Illinois
Plaintiff-Appellee,
Case No. 16-LM-155
v.
Kenneth J. Vanko
Emily L. Langhenry
Clingen Callow & McLean, LLC
2300 Cabot Drive, Suite 500
Lisle, Illinois 60532
(630) 871-2600
vanko@ccmlawyer.com
langhenry@ccmlawyer.com
This appeal is about three words: the phrase “not less than.” And in particular, this
appeal concerns the meaning of that phrase when figuring out how long a post-
phrase “not less than” in a way that flouts accepted contract construction rules. What’s
more, Pam’s Academy relies on inapplicable or poorly reasoned out-of-state case law to
defend the uncertain temporal limits pervading the Non-Disclosure Agreement and
Restrictive Covenant (“Agreement”) that its former employee, Callie Marik, signed.
scrutinize non-compete arrangements. Prairie Eye Center, Ltd. v. Butler, 305 Ill. App. 3d
442, 445 (4th Dist. 1999). Employees like Marik do not negotiate agreements like this
and have little (or no) chance to fix drafting problems. Jefco Laboratories, Inc. v. Carroo,
136 Ill. App. 3d 793, 800 (1st Dist. 1985). And employers cannot benefit from ambiguities
they themselves create. Marwaha v. Woodridge Clinic, S.C., 339 Ill. App. 3d 291, 293 (2d
Dist. 2003). Nothing about these principles is remotely controversial. Pam’s Academy
does not question them. Nor, for that matter, does it address them.
Yet Pam’s Academy wants leniency. That is, it seeks to have courts look past core
problem. The parties at least now agree on one rule: employment-based restrictive
covenants lacking a time limit are not enforceable. (Appellee’s Brief, at p. 8). That boils
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down the Court’s analysis to a simple legal question: is a restrictive covenant that lasts
for “not less than” a certain number of years temporally limited at all?
Like the circuit court, Pam’s Academy says that “not less than” five or three years
just means five or three years. To do so, it first ascribes three potentially different
meanings to the phrase “not less than,” an exercise that itself defeats the argument that
the phrase is “clearly” unambiguous. (Appellee’s Brief, at p. 1). Pam’s Academy then
settles on one of these meanings―that the phrase “establishes a termination point in the
event that a prior term sets a starting point”―to construe the Agreement’s time limit.
The problem with this approach is simple: the interpretation is irreconcilable with
Illinois law covering non-compete contracts. By analyzing the Agreement the way it
does, Pam’s Academy has tried to fit this case into the analysis from Robinwood, Inc. v.
Baker, 425 S.E.2d 353 (Ga. Ct. App. 1992). Pam’s Academy has located a smattering of
non-compete cases from other states that addressed the “not less than” language found
in the Agreement here. (Appellee’s Brief, at pp. 5-7). But Baker is the only one to engage
in some analysis to support its holding. There, the court applied the meaning described
in the preceding paragraph and held that a non-compete term of “not less than two
years” meant two years. Id. at 356. Citing no cases, the Georgia Court of Appeals called
citation to even one similar case. In fact, nowhere does the majority opinion apply any
basic interpretive rule to justify its holding. And it certainly did not invoke the
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cautionary rules that Illinois courts use when evaluating restraints on trade. For its part
in assessing the “not less than two years” language, the dissent in Baker opposed the
majority’s interpretation of “not less than,” stating that the court “resort[ed] to a less
Baker also has serious limitations because the defendant there admitted in her answer
that “not less than two years” meant two years. Id. at 355-56. Why she did this isn’t
clear, but she did. And that point was a featured part of the majority’s analysis. Id. at
355. Marik has made no such judicial admission. One vote on the Georgia Court of
Appeals should not provide this Court with any comfort that the majority’s analysis, or
Pam’s Academy tries to prop up its position by looking beyond Baker to other out-
of-state decisions. It first returns to Georgia and examines Bennett v. Georgia Indus.
Catering Co., 149 S.E.2d 81 (Ga. 1966). That case (which, for reasons unknown, Baker
never cited) also involved an employee’s restrictive covenant that lasted for “not less
than one year.” Id. at 83. The Supreme Court of Georgia offered no case authority
showing why its conclusion―that “not less than” one year meant one year―was
consistent with contract interpretation rules that guide this Court’s analysis.
After its discussion of the two Georgia cases, Pam’s Academy examines the Texas
Court of Appeals’ decision in H.H. Chandler v. Mastercraft Dental Corp. of Texas Inc., 739
S.W.2d 460 (Tex. Ct. App. 1987). That case involved a covenant ancillary to a sale of
business, which lasted for “not less than five (5) years.” Id. at 462. But in Illinois, sale-of-
business covenants are encouraged, not disfavored. Courts, in fact, ascribe great
3
importance to this distinction. Decker, Berta and Co., Ltd. v. Berta, 225 Ill. App. 3d 24, 28-
Negotiated agreements not to compete, which parties sign in connection with the
it is the employer is trying to protect from unfair competition. Id. at 28. H.H. Chandler
some unusual contractual language. The decision has no persuasive force when
evaluating an adhesive, disfavored contract like the Agreement Marik signed with
Pam’s Academy.
Lastly, Pam’s Academy looks to Florida case law, Vela v. Kendall, 905 So.2d 1033 (Fla.
Dist. Ct. App. 2005), where the appellate court partially affirmed an injunction based on
a non-compete clause that lasted for “no less than two years from the date of
termination.” Id. at 1034. Nowhere did the court evaluate the meaning of this phrase or
its reasonableness under Florida law. And even more importantly, Florida’s non-
compete statute breaks sharply from Illinois common law, which undermines Vela as
even an authoritative case. That is, the relevant Florida statute instructs that a “court
shall not employ any rule of contract construction that requires the court to construe a
restrictive covenant narrowly, against the restraint, or against the drafter of the
contract.” FLA. STAT. § 542.335(h) (2017). Illinois law is the exact opposite. (Appellant’s
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Outside the realm of non-compete agreements, Pam’s Academy visits the decision in
Latham v. Village of Wilmette, 168 Ill. 153 (1897). That case involved the interpretation of a
municipal ordinance that repeatedly used the term “not less than” when describing
certain measurements of street improvements. But Latham goes only so far as its facts
The Court in Latham described unrebutted evidence showing the actual custom-and-
usage meaning that civil engineers applied to the specific measurements reflected in the
challenged municipal ordinance. Id. at 158. By contrast, Pam’s Academy may not offer
any expert legal opinion on the meaning of the term “not less than” in restrictive
covenants like the Agreement. See Todd W. Musburger, Ltd. v. Meier, 394 Ill. App. 3d 781,
800 (1st Dist. 2009) (stating that “expert testimony as to legal conclusions that will
determine the outcome of the case is inadmissible”) (quoting Good Shepherd Manor
Foundation, Inc. v. City of Momence, 323 F.3d 557, 564 (7th Cir. 2003)).
After canvassing these decisions, Pam’s Academy’s brief then goes beyond the
certified questions. That is, in Part II, Pam’s Academy claims the Agreement’s restrictive
covenants are enforceable in the abstract, suggesting that it can dispense with
court’s examination in an interlocutory appeal submitted under Supreme Court Rule 308
is “strictly limited to the question certified by the trial court.” Lanning v. Morris Mobile
Meals, Inc., 308 Ill. App. 3d 490, 493-94 (3d Dist. 1999). The circuit court here did not
certify for review the question of whether three- or five-year restrictive covenants are
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Indeed, even if the Court considered Pam’s Academy’s argument, it actually inverts
the reasonableness test from Reliable Fire Equipment Co. v. Arredondo, 2011 IL 111871.
That is to say, can an employer claim that restrictive covenants of a particular duration
employers cannot point to the most restrictive covenant upheld somewhere and then
The Court should answer both certified questions in the negative and remand to the
Respectfully submitted,
CALLIE MARIK
6
CERTIFICATE OF COMPLIANCE
I certify that this reply brief conforms to the requirements of Supreme Court Rules
341(a) and (b). The length of this reply brief, excluding the pages containing the Rule
341(d) cover, the Rule 341(h)(1) statement of points and authorities, the Rule 341(c)
Respectfully submitted,
CALLIE MARIK
Kenneth J. Vanko
Emily L. Langhenry
Clingen Callow & McLean, LLC
2300 Cabot Drive, Suite 500
Lisle, Illinois 60532
(630) 871-2600
vanko@ccmlawyer.com
langhenry@ccmlawyer.com
Counsel for Defendant-Appellant
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E-FILED
Transaction ID: 3-17-0803
File Date: 5/8/2018 11:35 AM
Barbara Trumbo, Clerk of the Court
APPELLATE COURT 3RD DISTRICT
No. 3-17-0803
)
PAM’S ACADEMY OF DANCE/FORTE ARTS ) Appeal from the Circuit Court of the
CENTER, ) Thirteenth Judicial Circuit, Grundy
) County, Illinois
Plaintiff-Appellee, )
) Case No. 16-LM-155
v. )
) Circuit Judge: Sheldon Sobel
)
CALLIE MARIK, ) Appeal from Order dated June 28, 2017
) Certified Question granted November
Defendant-Appellant. ) 8, 2017
)
NOTICE OF FILING
Please take notice that on May 8, 2018 we electronically filed with the Clerk of
the Appellate Court of Illinois, Third Judicial District the following:
True and correct copies of which are attached hereto and served upon you.
CALLIE MARIK
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CERTIFICATE OF SERVICE
The undersigned hereby states that she served the referenced documents to the
parties listed in the attached service list via e-mail and regular mail by depositing the
same in the mail chute located in Lisle, IL on or before 5:00 p.m. this 8th day of May, 2018.
{00408253.DOCX /v. 1 }