Epstein Becker: Illinois Appellate Court Holds Only Material Breaches Justify Nonperformance of Restrictive Covenants | Practical Law

Epstein Becker: Illinois Appellate Court Holds Only Material Breaches Justify Nonperformance of Restrictive Covenants | Practical Law

This Law Firm Publication by Epstein Becker & Green, P.C., discusses the Illinois Appellate Court's recent decision in InsureOne Independent Insurance Agency LLC v. Hallberg, reiterating that only a party's material breach of a contract that contains a restrictive covenant excuses the other party from the restriction. James Hallberg hired 29 of his former employer's employees and directly competed with the former employer, breaching the restrictive covenants in his employment agreement with the employer. The court found that although the employer may have breached the employment agreement as well, a partial breach by one party did not justify the other party's failure to perform.

Epstein Becker: Illinois Appellate Court Holds Only Material Breaches Justify Nonperformance of Restrictive Covenants

by Epstein Becker & Green, P.C.
Published on 11 Jul 2012Illinois, United States
This Law Firm Publication by Epstein Becker & Green, P.C., discusses the Illinois Appellate Court's recent decision in InsureOne Independent Insurance Agency LLC v. Hallberg, reiterating that only a party's material breach of a contract that contains a restrictive covenant excuses the other party from the restriction. James Hallberg hired 29 of his former employer's employees and directly competed with the former employer, breaching the restrictive covenants in his employment agreement with the employer. The court found that although the employer may have breached the employment agreement as well, a partial breach by one party did not justify the other party's failure to perform.