For the second year in a row the Governor of Illinois awarded Automated Industrial Machinery, Inc. (AIM) the Governor’s Export Awards for outstanding accomplishments in the export of goods and services around the globe. AIM’s President Constantine Grapsas had led his company by employing sheer grit and developing specialized technical know-how. However, the courts of Illinois have decided to punish Mr. Grapsas for his achievement. The AIM VP of engineering, a company board member, officer, and shareholder, after 13 years decided to quit and began directly competing with AIM although there was a non-compete agreement in place. AIM filed suit. In a decision handed down June 24, 2013, the Illinois Appellate Court, First District, found a restrictive covenant unenforceable due to lack of adequate consideration since the employee had not been in his position for more than two years. The result is that manufacturers in Illinois will have to wait for two years before they expose key employees to trade secrets. This does not make manufacturing in the USA more competitive. NAM is following this case very closely. To read more about this litigation please see click here.
Patrick Forrest is Vice President and Deputy General Counsel at the NAM. He also serves as part of the Manufacturers’ Center for Legal Action, the leading voice of manufacturers in the courts. To read more about the Manufacturers’ Center for Legal Action, please click here.
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