Breach of Fiduciary Duty Claims Against Former Employee Could Proceed Despite Absence of Trade Secrets

Case: Hecny Transportation, Inc. v. Chu (7th Cir. No. 05-1273, 05-1399 10/31/05)

The One Sentence Summary: The district court erred in holding that the Illinois Trade Secrets Act preempted an employer's breach of fiduciary duty claims against its former employee who allegedly diverted corporate assets and opportunities.


Seventh Circuit Holdings:

• The district court correctly dismissed trade secret claims by the employer, Hecny, when its customer list was not shown to be a trade secret.
• The failure of the trade secret claim did not preclude the employer from pursuing claims of breach of fiduciary duty and related claims against Hecny's former employee, Chu.
• The court properly denied an order enforcing the employee's covenant not to compete in light of the seven year lapse of time since the employee departed.