Client Alert
October, 2019
Seneczko Wins Default as Discovery Sanction in Duty of Loyalty Claim
Seneczko, Alan
Questions?
Contact Attorney Alan Seneczko in our Oconomowoc office at (262)560-9696 or by email
By: Alan E. Seneczko, Esq.
Wessels Sherman Attorney Alan Seneczko, managing shareholder of the Wisconsin office, recently won a huge decision in a claim against a former executive for breach of his duty of loyalty to the company (among other claims). The company, Storage Battery Systems, suspected its director of sales was using his position and the confidential information he acquired during his employment to funnel the company's business opportunities to his own company, in competition with and in violation of his duty of loyalty to the company and his non-compete agreement. See, Storage Battery Systems, LLC v. Glenn Wilder and Professional Power Engineering, LLC, Case No. 17cv1244 (Wis. Cir. Ct., 01/17/19).

During the discovery process Seneczko requested electronic data, including data reflecting the defendants' sales both during and after the termination of the employment relationship. In response, the defendants produced certain documents, but refused to produce any electronic data, which the court then compelled them to do.

Psychological Counselors in Pennsylvania Found to be Independent Contractors
By Nancy E. Joerg, Esq.
In July 2019, a state appeals court, the Pennsylvania Commonwealth Court (hereinafter "Court"), decided that psychological counselors (who provided services to clients) had been properly classified as independent contractors. [The case is Pathways Counseling Services LLC v. Commonwealth of Pennsylvania et al., Case Number 1332 CD 2018.]

Pathways Counseling Services LLC (hereinafter "Company") referred clients to the independent contractor psychological counselors. The Company vigorously defended itself from the charge that it was the employer of the independent contractor psychological counselors for state unemployment insurance purposes.

Questions?
Contact Attorney Nancy Joerg in our St. Charles, Illinois office at (630) 377-1554 or by email
Seventh Court Decision - Use of the "N"-Word
By Walter J. Liszka, Esq.
In recent years, a number of Federal Appellate Courts have issued opinions finding that the single use of a racial slur would be sufficient to constitute a hostile and offensive working environment based on race. On August 21, 2019, the Seventh Circuit Court of Appeals reached the opposite conclusion in concluding that the single alleged use of the "N Word" by a Supervisor was not enough to show racial harassment given the overall work scenario of the Plaintiff.

In the case of Smith v. Illinois Department of Transportation, (No. 18-2948; August 21, 2019) the Plaintiff, Terry L. Smith, was disciplined and eventually terminated for poor work performance that included numerous safety violations during his six (6) month probationary period.

Questions?
Contact Attorney Walter Liszka in our Chicago office at (312) 629-9300 or by email
Questions?
Contact Attorney James Sherman in our Minneapolis office at (952) 746-1700 or by email
Wessels Sherman Offers a New Service to its Clients - Early Mediation of Internal Workplace Disputes!

By James B. Sherman, Esq.

Our clients and friends are familiar with many of our firm's client services, including our skilled litigation team they rely on to handle every sort of workplace litigation when things go bad. Many people also know about our one-of-a-kind phone consultation program, started in the 1980s to help employers avoid workplace issues from winding up in court. Our firm was on the forefront in keeping businesses out of legal trouble by allowing owners and HR professionals early access to advice from our experienced attorneys, without worries about incurring legal fees. We're at it again - offering our clients yet another completely different service to deal with some of their toughest employment problems, potentially solving them before they mushroom into more serious problems.

James Sherman, our firm's President/CEO, has undergone rigorous training in cutting-edge "transformative mediation." In addition to becoming a qualified mediator under MN Rule 114, Mr. Sherman relies on his years of experience representing management in labor and employment disputes across the country. What makes this particular service - Early Transformative Mediation - so valuable to employers, is that it can take place before parties "lawyer up" to pursue formal grievances, charges, or litigate their dispute in court.

Join Wessels Sherman attorneys Dick Wessels, Nancy Joerg, Joe Laverty and Tony Caruso for a special breakfast seminar at the historic Dunham Woods Riding Club in Wayne, Illinois. In a lovely setting, learn about termination strategies and employment at will in Illinois; how to terminate employees on medical leave; how to document misconduct; and the use of settlement and release agreements to reduce risks in terminations. ALSO INCLUDES INFORMATION ON NEW ILLINOIS EMPLOYMENT LAWS REGARDING WHAT IS ALLOWED IN SEVERANCE AND RELEASE AGREEMENTS SINCE THE LAWS WILL CHANGE, EFFECTIVE JANUARY 1, 2020! 

When: Wednesday, October 23, 2019 from 8:00 AM to 12:00 PM
Where: Dunham Woods Riding Club, Wayne, Illinois
Cost: Only $100 which includes a delicious continental breakfast and many valuable handouts
Contact: For more information, contact Tammy Nelson at (630) 377-1554
Connect with Wessels Sherman 
Upcoming Seminars, Webinars and Teleseminars
Wednesday, October 23, 2019, 8 am - Noon
Cost: $100

Thursday, November 7, 2019, 2-3 pm
Cost: $100
The attorneys of Wessels Sherman have the superior experience, knowledge and leadership to aggressively represent your business nationwide, including St. Charles, Chicago and Cook County, Illinois; Oconomowoc, Wisconsin; Minneapolis, Minnesota; Davenport, Iowa and the entire Quad Cities area.  

Editors:
CLIENT ALERT Editor-in-Chief........Walter J. Liszka
Minnesota.........................................James B. Sherman
Wisconsin.........................................Alan E. Seneczko
Iowa.................................................Joseph H. Laverty
Illinois...............................................Nancy E. Joerg  
The Client Alert is a complimentary newsletter published periodically for clients and friends of Wessels Sherman. We reserve the right to limit distribution of our materials to representatives of management. The materials in this newsletter have been abridged from a variety of sources and are not necessarily applicable to a particular situation. The contents of this mailing should not be construed as legal advice. State laws vary. Readers should consult with legal counsel before taking any action on matters covered by this mailing.