Alpha School Bus Company v. Wagner

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State: Illinois

Court: 1st District Appellate

Docket No: 1-06-3427 Rel

Case Date: 05/15/2009

Preview:SIXTH DIVISION May 15, 2009 No. 1-06-3427 ALPHA SCHOOL BUS COMPANY, INC., and COOK-ILLINOIS CORPORATION, Plaintiffs-Appellants, v. MICHAEL W. WAGNER, BARBARA ANN HACKEL, SOUTHWEST TRANSIT, INC., and SOUTHWEST TRANSIT LEASING, LLC., Defendants-Appellees. ) ) ) ) ) ) ) ) ) ) ) ) Appeal from the Circuit Court of Cook County

No. 04 CH 09892

The Honorable Martin S. Agran, Judge Presiding.

PRESIDING JUSTICE O'MALLEY delivered the opinion of the court: On May 9, 2006, plaintiffs Alpha School Bus Company, Inc. (Alpha), and Cook-Illinois Corp. (Cook-Illinois), filed a third amended complaint against Michael W. Wagner, Barbara Ann Hackel, Southwest Transit, Inc. (Southwest), Southwest Transit Leasing, LLC (Southwest Leasing), Leroy Meister, Chicago Bear Bones Leasing, Inc. (Chicago Bear Bones), Sunrise Southwest, LLC (Sunrise Southwest), and Sunrise Transportation, Inc. (Sunrise Transportation),1 alleging, inter alia, violations of the Illinois Antitrust Act (the Antitrust Act) (740 ILCS 10/1 et seq. (West 2006)) and the Illinois Trade Secrets Act (the Trade Secrets Act) (765 ILCS 1065/1 et seq. (West 2006)). Defendants filed a combined motion to dismiss under sections 2-615 and 2-619 of the Code of Civil Procedure (the Code) (735 ILCS 5/2-615, 2-619 (West 2006)). The trial court granted the section 2-615 motion

1

Meister, whose name in the record is also spelled "Miester," Chicago Bear Bones Leasing,

Inc., Sunrise Southwest, LLC, and Sunrise Transportation, Inc., are not parties to this appeal. For the sake of clarity, we shall refer to Wagner, Hackel, Southwest, and Southwest Leasing as the "Southwest defendants," and Sunrise Transport and Sunrise Southwest as the "Sunrise defendants."

No. 1-06-3427 and dismissed the cause with prejudice. On appeal, plaintiffs contend the trial court erred in (i) holding that the Antitrust Act and the Trade Secrets Act preempt plaintiffs' other claims; (ii) dismissing plaintiffs' claims for a permanent injunction and for trade secret misappropriation2; (iii) dismissing Cook-Illinois as a party; (iv) dismissing plaintiffs' claims regarding two allegedly lost contracts that plaintiffs' "sister corporations" bid on; and (v) dismissing their third amended complaint with prejudice. For the following reasons, we affirm in part, reverse in part, and remand for further proceedings.

I. BACKGROUND A. General Facts Alpha, a wholly owned subsidiary of Cook-Illinois, has provided special education school bus transportation services for the Chicago Board of Education of Chicago Public Schools (CPS), Community High School District 218 (District 218), and the Southwest Cook County Cooperative Association for Special Education (SWCCCASE). Wagner was an officer of Alpha from 1986 through April 13, 2003. Meister was a "managing employee" of Alpha from June 1989 through May 23, 2003. Hackel was the owner of Southwest, and Wagner owned Southwest Leasing. According to defendants, Southwest leased its rolling stock from Southwest Leasing.

2

Plaintiffs also ask that we review whether they stated a cause of action against Wagner for

"violation of a stipulation." The record reveals, however, that plaintiffs never alleged such a count. We therefore will disregard plaintiffs' contentions on this "issue." 2

No. 1-06-3427 B. Prior Procedural History Plaintiffs originally filed this cause of action against defendants in the federal district court in the summer of 2003, alleging violations of state and federal antitrust laws, civil conspiracy, violation of Illinois trade secret laws, tortious interference with business opportunity, breach of fiduciary duty, racketeering, and fraudulent transfer of assets. See Alpha School Bus Co. v. Wagner, No. 03 C 5009, slip op. at 2 (N.D. Ill. June 17, 2004). The federal district court subsequently granted defendants' motions to dismiss, holding that plaintiffs failed to state a claim either of "bid-rigging" under the Sherman Act (15 U.S.C.

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