EDWARDSVILLE — An Illinois manufacturing company claims a former manager and co-owner developed nearly identical products and services for a competitor.
Design Corrugating Co., filed a compliant Dec. 15 in the Madison County Circuit Court against Abbott Machine Co., and Steven Humphreys, alleging breach of contract and fiduciary duty and fraud.
According to the complaint, Humphreys worked for Design Corrugating for the "majority of his career." He was allegedly part owner until 2016, when he received $300,000 for his ownership interest during the company's acquisition and also signed a five year employment contract to help continue to run Design Corrugating. Design Corrugating claims Humphreys was also provided with an annual salary of $160,000, an annual $20,000 performance bonus, paid vacation, health and dental benefits and a matching contribution account.
As the company's operations manager, Humphreys allegedly had access to "sensitive and confidential" information from Sept. 30, 2016, through Nov. 3, 2019, when he voluntary resigned and went to work for the plaintiff's competitor Abbott.
Design Corrugating claims it agreed to terminate Humphrey's employment agreement early in exchange for a non-compete covenant. It also claims that shortly after Humphreys went to work for Abbott, the company launched products and services "nearly identical" to those offered by Design Corrugating. They accuse Humphreys of being directly involved in the development and roll out of those products in violation of his agreement.
Design Corrugating seeks compensation and all other proper relief. They are represented by. Anne Mayette, Randall Thompson and Carrie Claiborne of Husch Blackwell LLP in Chicago.
Madison County Circuit Court case number 20-:-001766