In this article, you can discover… The types of business information that qualify as a trade secret in Illinois. How Illinois courts determine whether confidential information qualifies as a trade secret. How a business can strengthen trade secret protection and defend confidential data. What Types Of Business Information Qualify As A Trade Secret Under Illinois Law? Many things, under the right circumstances, can qualify as a trade secret. Technical data, non-technical data, formulas, recipes, programs, or software could all be considered a trade secret. Unique production or manufacturing methods can also be considered trade secrets. It’s a very broad category. Determining whether confidential information qualifies as a trade secret in Illinois courts is largely a two-part test. The information must be sufficiently secretive to produce or to result in economic value to you or to your business. You took reasonable steps to protect that information, device, or process…Read More
Ending a vendor relationship can feel risky, especially when long-term contracts or critical services are involved. In this article, we discuss… Key factors to consider when terminating vendor contracts in Illinois. How contract clauses are enforced. Pow contract clauses are enforced. What Legal Grounds Justify Terminating A Vendor Contract Under Illinois Law? The vast majority of vendor contracts already contain termination provisions. Those provisions typically spell out when, how, and why a contract may be terminated. If no such provision exists, termination may still be possible in certain circumstances. One example is misconduct that occurred prior to the execution of the contract and induced you to enter into the agreement in the first place. Another common ground for termination is a material breach of the contract. If one party’s breach is significant enough to render the contract effectively useless, termination may be justified. A less common, but still…Read More
Non-solicitation agreements are a common tool Illinois businesses use to protect their most valuable relationships, but enforcing them is not always straightforward. In this article, we explore… How non-solicitation clauses in Illinois work and how they differ from non-compete agreements. What courts look for when deciding whether these clauses are enforceable. The evidence required to prove a violation, and when businesses should consider involving legal counsel. What Is A Non-Solicitation Clause In Illinois, And How Does It Differ From A Non-Compete Agreement? While both are restrictive covenants and are used to protect business interests, they serve different purposes. A non-solicitation agreement prohibits a departing employee, or, in some cases, a client, from actively poaching or recruiting your clients, customers, or employees for a set period of time. A non-compete agreement, on the other hand, restricts individuals from working for a competitor, either by starting a competing business or…Read More
When a third party disrupts a business relationship, the damage can be immediate and costly. In this article, we break down… How tortious interference in Illinois works, and what proof is required. How courts distinguish lawful competition from wrongful conduct. When businesses should involve legal counsel. What Is Tortious Interference Under Illinois Business Law? Tortious interference under Illinois law generally occurs when a third party seeks to interfere with or disrupt a company’s existing contractual or business relationship in a way that ultimately causes harm. There are two most common types of tortious interference. One is tortious interference with contract, and the other is tortious interference with business expectancy, sometimes also referred to as tortious interference with prospective economic advantage. Each has different legal requirements. That said, there is some commonality between the two. Generally, you must either have a valid contract or a reasonable expectancy of entering…Read More
As the year winds down, many businesses face contract disputes, unpaid invoices, or partnership disagreements that they’d like to resolve before closing the books. For companies seeking a faster and more confidential option than traditional litigation, business arbitration in Illinois can be an attractive solution. In this article, we explain… How arbitration for contract disputes works. When arbitration is most effective. What advantages it offers to Illinois businesses, particularly at the end of the year. Why Is Arbitration An Effective Dispute Resolution Option For Businesses During Q4? It’s uncommon for any dispute to be fully resolved within a three-month span, though some can be. Generally speaking, arbitration can be an effective option later in the year because it offers a faster and more confidential alternative to traditional litigation. Litigation can take years to move forward. Even serving a lawsuit and receiving a response can take over a month,…Read More
The holiday season is a time of celebration and heightened activity, but also one of the riskiest times of year for businesses when it comes to fraud. From increased transaction volumes to distracted staff, the conditions are ideal for dishonest activity to slip through the cracks. In this article, we’ll discuss… Why fraud spikes at year-end and the most common internal schemes. How companies like yours can strengthen their defenses. The role of an attorney in helping you mitigate liability. Why Does Business Fraud Tend To Spike During The Holiday And Year-End Season? There are several reasons, and they can vary depending on the industry. Generally speaking, business fraud tends to spike during the holidays because a perfect storm is at play: increased opportunity, distracted employees, and higher transaction volume all converge at the same time. Fraudsters take advantage of these conditions. With people busy shopping, closing year-end…Read More
When policyholders pay premiums, they expect their insurance companies to act in good faith and promptly investigate and pay valid claims. Unfortunately, that doesn’t always happen. In this article, we’ll break down… What constitutes bad faith insurance practices in Illinois. How these practices happen and what damages may be recoverable. When to seek legal help if you believe your insurer isn’t acting fairly. What Is Considered Bad Faith By An Insurance Company Under Illinois Insurance Law? Generally speaking, an insurance company acts in bad faith when its conduct toward a policyholder is unreasonable or vexatious. This can include deliberate, unfair, or dishonest behavior such as unnecessary delays, unreasonable denials of valid claims, or lowball settlement offers. Essentially, when an insurer fails to handle a claim in a fair and timely manner, it may be engaging in bad faith. What Are Common Examples Of Bad Faith Insurance Claim Handling?…Read More
Consumer protection laws in Illinois are designed to ensure fairness and honesty in the marketplace. In this article, we’ll discuss… What qualifies as deceptive business practices or consumer fraud in Illinois. How to recognize early warning signs of consumer fraud. What steps you can take to stay compliant and safeguard your reputation. What Qualifies As Consumer Fraud Under The Illinois Consumer Fraud And Deceptive Business Practices Act? Under the Illinois Consumer Fraud and Deceptive Business Practices Act, consumer fraud generally refers to any unfair or deceptive act or practice that occurs in the course of trade or commerce, or during business activity. Violations typically happen when a business commits a deceptive or unfair act that causes harm to a consumer who relied on the company’s representations. What Are Some Early Warning Signs That My Business Could Face A Consumer Fraud Claim? One of the earliest warning signs is…Read More
In this article, you can discover… What breaches of fiduciary duty in business partnerships might look like. How Illinois courts determine if a partner breached their fiduciary duty. Effective alternatives to litigation when a fiduciary breach has occurred. What Are Some Real-World Examples Of Fiduciary Duty Breaches In Business Partnerships? One of the most common breaches of fiduciary duties we see in business partnerships involves some form of self-dealing or unfair competition. This often occurs when one of the partners is either skimming money from the business for their personal benefit, or poaching customers from the business to a side business they may be operating in secret. We see this most often in service-based industries. For instance, someone running a home repair business with a partner might get a call from a friend or neighbor. Instead of routing that job through the business, they perform the repair on…Read More
In this article, you can discover… When your business should consider a shareholder buy-out agreement. The events that trigger a mandatory or voluntary shareholder buy-out. How buy-sell agreements help protect businesses during shareholder exits. When Should A Business Consider A Shareholder Buy-Out Agreement? I always recommend that shareholders put a buy-out agreement in place from the very beginning. A well-drafted shareholder agreement should clearly outline the roles and responsibilities of each shareholder. In addition, these agreements should also lay out the specific circumstances under which a shareholder can request or be required to sell their shares, whether to the other shareholders or back to the company. What Events Typically Trigger A Mandatory Or Voluntary Shareholder Buy-Out? Mandatory buyouts are rare and typically only occur when they’re outlined in advance in a shareholder agreement. These agreements often spell out specific events that may trigger a buyout to protect the…Read More