Siwik v. Jasmine Enterprises Incorporated
CourtAppellate Court of Illinois
Date FiledOctober 19, 2026
Docket3-25-0593
StatusPublished
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Full Opinion
2026 IL App (3d) 250593
Opinion filed October 19, 2026
____________________________________________________________________________
IN THE
APPELLATE COURT OF ILLINOIS
THIRD DISTRICT
2026
SYLWIA SIWIK, ) Appeal from the Circuit Court
) of the 18th Judicial Circuit,
Plaintiff-Appellant, ) Du Page County, Illinois,
)
v. ) Appeal No. 3-25-0593
) Circuit No. 23-LA-67
JASMINE ENTERPRISES INCORPORATED, )
) Honorable
Defendant-Appellee. ) David E. Schwartz,
) Judge, presiding.
____________________________________________________________________________
PRESIDING JUSTICE HETTEL delivered the judgment of the court, with opinion.
Justices Brennan and Anderson concurred in the judgment and opinion.
____________________________________________________________________________
OPINION
¶1 Plaintiff, Sylwia Siwik, appeals from the Du Page County circuit court’s final judgment in
favor of defendant, Jasmine Enterprises Incorporated, on plaintiff’s claim for unpaid commissions,
which she brought under the Sales Representative Act (Act) (820 ILCS 120/0.01 et seq. (West
2022)). For the following reasons, we affirm.
¶2 I. BACKGROUND
¶3 A. General Background
¶4 On May 25, 2023, plaintiff filed a one-count first amended complaint against defendant. In
her complaint, plaintiff alleged that, around July 27, 2019, she and defendant entered into a Sales
Representative Agreement (agreement). Plaintiff attached a copy of the agreement as an exhibit to
her first amended complaint.
¶5 Section 1.1 of the agreement appointed plaintiff as defendant’s sales representative and
authorized her to act in her role as defendant’s “exclusive agent to promote, market and sell” bridal,
bridesmaid, and mother-of-bride dresses sold and distributed under defendant’s trademarks or
brand names. Section 3.1 of the agreement provided that plaintiff “shall start to earn a commission
of [s]even and a [h]alf percent (7.5%) of the net amount of [d]resses ordered by and shipped to
customers” and that “[a] sale should not be deemed to have occurred, for purposes of calculating
[c]ommission, and commissions shall not be deemed earned or due and payable to [plaintiff] unless
and until [defendant] has actually shipped the order to the customers.” Additionally, sections 6.1
and 6.2 of the agreement provided as follows:
“6.1 During the term of this [a]greement, [plaintiff] shall not, directly or indirectly,
undertake or enter into any arrangement or efforts to promote, market or sell any type of
bridal, bridesmaid or mother-of-the-bride dresses which in the sole determination of
[defendant] is deemed to compete with the [d]resses. [Plaintiff] shall not represent or carry
any product for other companies for which the representative territory falls outside the
[t]erritory under this [a]greement, unless prior written agreements with such other
companies are in existence as of the date of this [a]greement.
6.2 In the event [plaintiff] is in violation of [s]ection 6.1 above, this [a]greement
shall automatically and immediately terminate regardless of whether [defendant] provides
[plaintiff] with any written or verbal notice of termination. As liquidated damages for such
2
breach, [plaintiff] shall relinquish any and all rights and claims to any commission which
is or may otherwise become due and payable to [plaintiff].”
Section 7.1 of the agreement authorized either party to terminate the agreement by providing at
least 30 days’ written notice to the other party, and section 7.2 of the agreement authorized
defendant to terminate the agreement “upon 10 days prior notice to [plaintiff] upon the occurrence
of *** [plaintiff being] in violation of any of the terms of [the] [a]greement.”
¶6 In her first amended complaint, plaintiff alleged that, around April 21, 2022, she e-mailed
a letter terminating the agreement effective May 22, 2022, to Kyle Yin, the president of defendant,
and Cynthia Yin, the vice-president of defendant. Plaintiff further alleged that Kyle acknowledged
receipt of the letter on the same day that she sent it and that, three days later, she was locked out
of defendant’s computer system, reasonably believed that she had been locked out, and, “therefore,
considered herself discharged from her duties with [defendant] as of April 25, 2022.” Plaintiff also
alleged that, around April 26, 2022, she sent defendant “a list of all her orders that were booked
but unshipped as of April 20, 2022. She requested that [d]efendant provide her with a schedule of
when she would be paid her commissions on those orders,” but stated that defendant “has refused
to pay [her] any of her outstanding earned commissions.” Plaintiff alleged that, as of the date of
her first amended complaint, defendant had failed to pay her $40,397.18 that it owed her in
commissions, in violation of the Act.
¶7 On February 18, 2025, plaintiff filed a motion for partial summary judgment. In her motion,
plaintiff asserted that defendant had refused to pay her the commissions that she was owed because
defendant believed that plaintiff had violated section 6.1 of the agreement, and thereby “triggered”
section 6.2 of the agreement, by signing a contract to work for Morilee Madeline Gardner
(Morilee), one of defendant’s competitors. Plaintiff argued that section 6.2 of the agreement was
3
an invalid liquidated damages clause in that its purpose was to punish plaintiff rather than to
compensate defendant for any actual losses that it might have incurred. Plaintiff also argued that
section 6.2 of the agreement was void in that it violated section 2 of the Act. See id. § 2.
¶8 One day after plaintiff filed her motion for partial summary judgment, defendant filed its
own motion for summary judgment. In its motion, defendant argued that there was no genuine
dispute of material fact and that it was entitled to judgment as a matter of law.
¶9 On May 14, 2025, the circuit court entered an order in which it found that section 6.2 of
the agreement did not “run afoul of” section 2 of the Act and was “not a penalty but rather a valid
liquidated damages provision.” The court further found that there was a genuine issue of material
fact regarding the date of plaintiff’s termination. Accordingly, the court denied plaintiff’s motion
for partial summary judgment and defendant’s motion for summary judgment and scheduled the
matter for trial.
¶ 10 B. Bench Trial and Notice of Appeal
¶ 11 On September 2 and 3, 2025, a bench trial was held. Kyle testified that defendant typically
engaged both employees and sales representatives, the latter of which were non-employees whose
main duty was to travel to stores within their individual territories, which each comprised a group
of states. Kyle further testified that he had sole decisionmaking authority over the hiring of sales
representatives and that both he and Cynthia had decisionmaking authority over the agreements
that sales representatives would execute upon being engaged by defendant and over the termination
of sales representatives.
¶ 12 As to defendant’s sales representative agreements, Kyle testified that they were drafted by
Cynthia, who was a licensed attorney and who would confer with him regarding any modifications
to the agreements. Kyle explained that defendants’ sales representative agreements were based on
4
an original template agreement that Cynthia had prepared in 1991. Kyle further explained that, if
a sales representative were to violate section 6.1 of defendant’s sales representative agreements,
then defendant would be damaged by both the representative’s early departure and the
representative’s engagement in competitive activity. Kyle stated that “the sooner [the violation]
the more [damage to defendant]” and that the damages to defendant for competitive activity would
be lost revenue.
¶ 13 Kyle further testified that Cynthia had initially drafted section 6.2 of the original template
agreement to “include[***] damages of $50,000,” but that he and Cynthia had later amended the
section “to as it [was] in [plaintiff’s] agreement” after a different sales representative had stated,
“[Y]ou know, my commission compared to this is much smaller so you can take this out.” Kyle
also testified that he and Cynthia had modified section 6.2 of the original template agreement for
the additional reason that damages “were very difficult to determine ahead of time” and depended
on “the time, the situation, the conduct, even the competition.” Kyle elaborated on the difficulty
of assessing damages as follows:
“Say, take [plaintiff’s] case, this was 2019, and then her violation was happen 2022.
We don’t know when she will—what time in the selling season, maybe she will violate in
January or February or March or April or May or June; right? We don’t know. We cannot
foresee.
***
[Y]ou see the sales commission every month has a different amount. So every
month—the selling season is six months. So the contract is six months. So if the season
just started and you, all of a sudden, quit and then work for—or you carrying other people’s
line in January, the damage to the company will be the whole season. If you do that in
5
February, that will be four months. If you do it in March, it will be three months. The case
that we have here is April, but my damage is three months. So it’s very hard to determine
exactly what was the damage. Besides, if she quit, say, I notify you I’m going to quit in
one month and then in—the next day she sign her agreement with other people, right, so,
you know, it’s very, very—we don’t know what will happen in the future. In 2019, we
don’t know what will happen.
***
I just explained about the time, right, and then there are many, many others, you
know like my customers; right? So the future sales. Even the—I will just give you one
example. Say, in our case here, [plaintiff] sent me a termination letter saying April 21st
and she will leave May 22nd. If she complete—if she leave May 22nd, in the middle, she
doesn’t do anything, she just sit there.”
¶ 14 Additionally, Kyle testified that he had discussed the agreement with plaintiff before she
signed it. As to plaintiff’s commissions, Kyle stated that, on the tenth day of each month, defendant
paid her “everything shipped minus return for the previous month.” Kyle further stated that the
last commission payment that plaintiff had received was “in the mid April range of 2022” and that
the payment had been “reflective of payment *** for dresses that had shipped through March 31st
of 2022.”
¶ 15 Next, Kyle testified that he understood plaintiff’s April 21, 2022, e-mail to mean that she
had intended to terminate her relationship with defendant effective May 22, 2022. Kyle further
testified that, on April 26, 2022, he sent plaintiff an e-mail in which he stated that one of
defendant’s account managers would pay plaintiff her commission pursuant to the terms of the
agreement. Kyle testified that, subsequently, on April 30 or May 1, 2022, he had learned that
6
plaintiff had become affiliated with Morilee from Morilee’s April 30, 2022, internal
announcement, indicating that that plaintiff was working for them. According to Kyle, Morilee’s
May 3, 2022, internal announcement stated, “[B]ravo, something like that. She already took three
orders, you know, *** look at her, she has 18 years of experience.” Kyle explained that some of
defendant’s customers had also informed him that plaintiff was working for Morilee. He said that,
on May 3, 2022, after he learned that plaintiff had become affiliated with Morilee, defendant sent
plaintiff a notice stating that her relationship with defendant was terminated.
¶ 16 On cross-examination, Kyle testified that, in deciding to revise section 6.2 of the original
template agreement, he had also considered the information that defendant’s sales representatives
would have at the time when a sales representative agreement was terminated. Kyle explained that,
throughout their work, defendant’s sales representatives would acquire confidential information
concerning defendant, such as defendant’s past performance within a given territory, defendant’s
best-selling product, product price points, defendant’s sales strategy, defendant’s costs, and
customers’ purchase history.
¶ 17 Additionally, Kyle testified that, on May 10, 2022, defendant did not pay plaintiff
commissions for April 2022. Kyle explained that this was because defendant believed that plaintiff
had violated section 6.1 of the agreement in April 2022 and that, consequently, she was not entitled
to commissions for that month.
¶ 18 Cynthia testified that, if one of defendant’s sales representatives were to “agree[***] with
a competitor but *** not engage[***] in any transactions on behalf of that competitor,” then the
damage to defendant would be the confusion to defendant’s customer “if a representative walks
into the door to the customer’s store as a representative of [defendant] but then *** was actually
selling somebody else.” Cynthia further testified that the damage to defendant would be less if “the
7
sales representative agreed to work with a competitive entity after the term of the agreement and
continue[d] out their term fully with [defendant] selling only [defendant’s] products.” Cynthia also
testified that, “[i]n the event that the sales representative did sell competitive dresses,” the damage
to defendant would be lost sales. Cynthia explained that, in each of the three scenarios, however,
the amount in damages owed to defendant would be difficult to calculate. Cynthia also explained
that, at some point, the “liquidated damages clause of $50,000” was removed from the original
template agreement because defendant’s sales representatives prior to plaintiff had stated that it
“was just too big a sum for them.”
¶ 19 Additionally, Cynthia testified that plaintiff had negotiated some of the terms in the
agreement. Cynthia further testified that she had understood plaintiff’s subsequent April 21, 2022,
e-mail to convey that plaintiff intended to terminate her relationship with defendant on May 22,
2022. Cynthia stated that she prepared the May 3, 2022, termination notice after Kyle had told her
that a customer had circulated an announcement that plaintiff had begun working with Morilee
and she saw the e-mails exchanged between Kyle and plaintiff.
¶ 20 On cross-examination, Cynthia testified that defendant would “definitely be hurt” by the
“carrying [of] competitor lines” because defendant operated within a “small industry” with “only
so many manufacturers out there,” defendant being one of the smaller manufacturers. On redirect
examination, Cynthia explained that defendant and Morilee sold identical products, which would
contribute to customer confusion if defendant’s sales representatives were also affiliated with
Morilee.
¶ 21 Plaintiff testified that, on April 26, 2022, she was unable to sign into defendant’s system.
Plaintiff further testified that she had subsequently contacted multiple customer service
representatives, who then informed her that there was no problem with defendant’s system.
8
Plaintiff explained that she never received any communication from defendant and therefore
assumed that her relationship with defendant had been terminated.
¶ 22 Plaintiff further testified that, “after [she] resigned” from defendant, she contacted a friend
of hers who worked for Morilee and who informed her that Morilee had an opening. Plaintiff stated
that she and Morilee subsequently executed an April 27, 2022, agreement, pursuant to which she
had agreed to work as a sales representative in Morilee’s social occasion division.
¶ 23 On cross-examination, plaintiff testified that she had seen other sales representative
agreements prior to the agreement that she and defendant executed. Plaintiff further testified that,
before she signed the agreement with defendant, she had first read the agreement and requested
that portions of the agreement other than its sections 6.1 and 6.2 be revised.
¶ 24 After hearing witness testimony and the parties’ closing arguments, the circuit court found
that plaintiff had failed to prove that defendant had terminated its relationship with her on April
26, 2022, by locking her out of its system. The court further found that, consequently, plaintiff had
breached section 6.1 of the agreement by “approximately April 28th at the latest” by “clearly
under[taking] to promote market and/or sell competitor’s products well before the May 22nd
resignation date.” Additionally, the court found that, because plaintiff had breached section 6.1 of
the agreement, no commissions were due to plaintiff and the Act no longer applied. The court also
found that the liquidated damages clause in section 6.2 of the agreement was valid and enforceable.
Based on its findings, the court then entered judgment in favor of defendant and against plaintiff.
¶ 25 On November 10, 2025, plaintiff filed a notice of appeal.
¶ 26 II. ANALYSIS
¶ 27 On appeal, plaintiff argues that the circuit court incorrectly interpreted the provisions of
the Act. More specifically, plaintiff asserts that section 2 of the Act “creates an absolute obligation
9
that the principal ‘shall pay all commissions due within 13 days of termination,’ ” and that section
1 of the Act dictates that a commission becomes due once a sales representative performs the acts
required by the governing contract. See 820 ILCS 120/1, 2 (West 2022). Plaintiff argues that “[t]he
legislature’s use of the word ‘shall’ [in section 1 of the Act] created a mandatory obligation by
statute that cannot be subverted by private agreement” and that sections 1 and 2 of the Act must
be jointly interpreted to mean that, whereas “[a] contract may define the calculation of a
commission, *** it cannot create a post-performance hurdle that results in forfeiture.” (Emphasis
in original.) Plaintiff further argues that the evidence at trial established that she had earned $9,519
in commissions for April 2022 and that defendant “willingly withheld [her] earned commissions
for an indefinite period of time, citing to a forfeiture provision, following her termination.”
According to plaintiff, “[b]y upholding [section 6.2 of the agreement, which] allow[ed] a principal
to withhold commissions upon termination, the trial court permitted a functional waiver of the
Act’s mandatory thirteen-day payment deadline.”
¶ 28 Plaintiff’s argument raises issues of statutory construction and contract interpretation. The
primary objective of statutory construction is to ascertain and give effect to the intent of the
legislature, the most reliable indicator of which is the plain and ordinary meaning of the language
of the statute itself. iMotorsports, Inc. v. Vanderhall Motor Works, Inc., 2022 IL App (2d) 210785,
¶ 14. When statutory language is clear and unambiguous, a court must give effect to the language
without resort to other aids of construction. Wynn v. Illinois Department of Human Services, 2017
IL App (1st) 160344, ¶ 43. “A court may not depart from the plain language of the statute and read
into it exceptions, limitations, or conditions that are not consistent with the express legislative
intent.” iMotorsports, 2022 IL App (2d) 210785, ¶ 14. Additionally, “[b]ecause all provisions of
a statutory enactment are viewed as a whole, words and phrases should not be construed in
10
isolation, but must be interpreted in light of other relevant provisions of the statute.” People ex rel.
Madigan v. Bertrand, 2012 IL App (1st) 111419, ¶ 21.
¶ 29 Similarly, the objective of contract interpretation is to ascertain and give effect to the intent
of the parties. Carey v. Richards Building Supply Co., 367 Ill. App. 3d 724, 726-27 (2006). “A
court will first look to the language of the contract itself to determine the parties’ intent.”
Thompson v. Gordon, 241 Ill. 2d 428, 441 (2011). In doing so, “a court must consider the document
as a whole and not focus on isolated portions of the document.” Salce v. Saracco, 409 Ill. App. 3d
977, 981 (2011). “If the language of a contract is clear and unambiguous, the intent of the parties
must be determined solely from the language of the contract itself, which should be given its plain
and ordinary meaning, and the contract should be enforced as written.” Id. The construction of
statute and the interpretation of a contract present questions of law that we review de novo.
iMotorsports, 2022 IL App (2d) 210785, ¶ 14.
¶ 30 In instituting the Act, “the Illinois General Assembly *** deemed it a ‘fundamental policy
of the state’ within the meaning of [section 2 of the Act] to protect the relative bargaining power
and thus the commissions of sales representatives working in Illinois.” Midwest Enterprises, Inc.
v. Generac Corp., No. 91 C 2229, 1991 WL 169059, at *4 (N.D. Ill. Aug. 27, 1991); see Maher &
Associates, Inc. v. Quality Cabinets, 267 Ill. App. 3d 69, 75 (1994) (“The court in Midwest
concluded that the *** Act constitutes the legislature’s pronouncement that protecting sales
representatives is fundamental public policy in Illinois. [Citation.] We agree.”). Section 1(2)(A) of
the Act mandates that “[w]hen a commission becomes due shall be determined” by “[t]he terms of
the contract between the principal and salesperson.” 820 ILCS 120/1 (West 2022). Section 2 of
the Act further mandates that “[a]ll commissions due at the time of termination of a contract
between a sales representative and principal shall be paid within 13 days of termination” and that
11
“[a]ny provision in any contract between a sales representative and principal purporting to waive
any of the provisions of [the] Act shall be void.” Id. § 2.
¶ 31 Otherwise stated, the plain language of sections 1 and 2 of the Act establishes that the terms
of a governing sales representative agreement dictate whether the sales representative who is party
to the agreement has become entitled to commissions, and, if so, by when. Such language further
establishes that it is only when the terms of a sales representative agreement provide that the sales
representative is actually entitled to commissions at the time of termination of the agreement that
the principal’s duty to pay the commissions within 13 days of termination is then triggered.
Accordingly, if, pursuant to the terms of a sales representative agreement, a sales representative is
not entitled to commissions at the time of termination of the agreement, then the principal does not
violate the Act by declining to pay the representative commissions within 13 days of the
termination.
¶ 32 In light of our understanding of sections 1 and 2 of the Act, we turn to analyzing whether,
in this case, plaintiff was entitled to commissions at the time of the termination of the agreement,
pursuant to the agreement’s terms. Relevant to our analysis, section 3.1 of the agreement provided
that plaintiff was entitled to “a commission of [s]even and a [h]alf percent (7.5%) of the net amount
of [d]resses ordered by and shipped to customers” and that commissions would be “deemed earned
or due and payable to [plaintiff once defendant] ha[d] actually shipped the order to the customers.”
However, section 6.1 of the agreement also prohibited plaintiff from “directly or indirectly,
undertak[ing] or enter[ing] into any arrangement or efforts to promote, market or sell any type of
bridal, bridesmaid or mother-of-the-bride dresses which in the sole determination of [defendant]
is deemed to compete with the [d]resses,” as well as from “represent[ing] or carry[ing] any product
for other companies for which the representative territory falls outside the [t]erritory under [the]
12
[a]greement, unless prior written agreements with such other companies are in existence as of the
date of [the] [a]greement.” Section 6.2 of the agreement stated that the agreement would
“automatically and immediately terminate” if plaintiff were to breach section 6.1 and that, “as
liquidated damages for such breach, [plaintiff would] relinquish any and all rights and claims to
any commission which is or may otherwise become due and payable to [plaintiff].”
¶ 33 Said differently, section 3.1 of the agreement established that one condition to commissions
being due to plaintiff was that customers ordered dresses that defendant actually shipped to them.
Section 3.1 also established that the earliest time when commissions would become due to plaintiff
was when defendant shipped the dresses to the customers. However, that commissions first became
due to plaintiff when defendant shipped customers their orders does not, without more, mean that
the commissions would always remain due to her up until the termination of the agreement.
Notably, the agreement itself did not state that such was the case. Rather, to the contrary, by stating
that plaintiff was to “relinquish” her rights and claims to commissions “due” upon violating section
6.1 of the agreement, section 6.2 of the agreement effectively provided that commissions that were
initially due when defendant shipped the dresses to the customers would become no longer due at
any later time that plaintiff were to be found to have violated section 6.1 and the agreement were
to therefore terminate.
¶ 34 As to whether this reading of the agreement comports with the Act, we note once more that
section 2 of the Act mandates the payment only of “commissions due at the time of termination of
a contract between a sales representative and principal.” (Emphasis added.) Id. If the legislature’s
intent were to ensure that principals paid commissions due at any point prior to the termination of
a sales representative agreement, then the legislature would have had no need to use language that
referred only to “commissions due at the time of termination” of such an agreement. Cf. Jones v.
13
Steck, 2020 IL App (3d) 180548, ¶ 22 (stating that the rules of statutory construction require courts
to avoid statutory interpretations that would render the language of the statute superfluous or
meaningless). To avoid rendering the legislature’s use of such language superfluous, we construe
section 2 of the Act to provide that an agreement would improperly waive the section’s provisions
if the agreement required the sales representative party to the agreement to give up his or her rights
or claims to commissions due at the time of the termination of the agreement. See id. We further
construe section 2 of the Act to provide that such an agreement would not waive the section’s
provisions if the agreement provided that commissions that were due prior to the termination of
the contract would become no longer due at the time of termination, on account of an interceding
event. See id. Moreover, we conclude that, because section 6.2 of the agreement merely provided
that no commissions were due to plaintiff at the time of the termination of the agreement, as a
consequence of her violation of section 6.1 of the agreement, the circuit court properly found that
section 6.2 of the agreement comported with the Act.
¶ 35 Next, plaintiff argues that the circuit court erred by finding that the liquidated damages
clause in section 6.2 of the agreement was valid and enforceable. Plaintiff asserts that the clause’s
requirement that “a sales representative [***] agree in advance to give up their legal entitlement
to commissions as a penalty for a breach” is “similar [to] a contractual waiver of rights through a
mechanism known as a forfeiture clause which are expressly prohibited under the Act.” Plaintiff
also asserts that the forfeiture of earned commissions that the liquidated clause required was not a
reasonable forecast of defendant’s damages in the event of plaintiff’s breach, making the clause
an unenforceable penalty for said breach. Because we have already determined that section 6.2 of
the agreement complies with the Act, we will limit the remainder of our analysis to addressing
plaintiff’s second assertion.
14
¶ 36 “It is a general rule of contract law that, for reasons of public policy, a liquidated damages
clause that operates as a penalty for nonperformance or as a threat to secure performance will not
be enforced.” Jameson Realty Group v. Kostiner, 351 Ill. App. 3d 416, 423 (2004). Conversely, a
liquidated damages clause will be enforced if the damages provided for are of “ ‘an amount that is
reasonable in the light of the anticipated or actual loss caused by the breach and the difficulties of
proof of loss,’ ” with “ ‘[a] term fixing unreasonably large liquidated damages [being]
unenforceable on grounds of public policy as a penalty.’ ” Penske Truck Leasing Co. v. Chemetco,
Inc., 311 Ill. App. 3d 447, 454 (2000) (quoting Restatement (Second) of Contracts § 356 (1981)).
“There is no fixed rule applicable to all liquidated-damages agreements, and each one must be
evaluated on its own facts and circumstances.” Id. Nevertheless, under Illinois law, a liquidated
damages clause is generally valid and enforceable when the following elements are met:
“ ‘(1) the parties intended to agree in advance to the settlement of damages that might arise
from the breach; (2) the amount of liquidated damages was reasonable at the time of
contracting, bearing some relation to the damages which might be sustained; and (3) actual
damages would be uncertain in amount and difficult to prove.’ ” Med+Plus Neck & Back
Pain Center, S.C. v. Noffsinger, 311 Ill. App. 3d 853, 860 (2000) (quoting Grossinger
Motorcorp, Inc. v. American National Bank & Trust Co., 240 Ill. App. 3d 737, 749 (1992)).
Whether a contractual provision constitutes a valid liquidated damages clause is a question of law.
Penske Truck Leasing, 311 Ill. App. 3d at 454.
¶ 37 At trial in this case, plaintiff and Cynthia each testified that plaintiff had negotiated the
terms of the agreement before plaintiff signed it. Kyle similarly testified that he and plaintiff had
discussed the terms of the agreement leading up to its execution.
15
¶ 38 Furthermore, Kyle and Cynthia both testified in relation to how the agreement’s measure
of liquidated damages related to the actual damages that defendant would sustain upon plaintiff
breaching section 6.1 of the agreement. More specifically, Kyle explained that, in the event of a
breach of section 6.1, defendant would be damaged by both the representative’s early departure
and the representative’s engagement in competitive activity, the latter of which would cause
defendant to lose revenue. Kyle also explained that, in deciding to include the liquidated damages
clause in section 6.2, he had also considered the fact that defendants’ sales representatives would
acquire defendant’s confidential information during the course of their work. Kyle stated that “the
sooner [the breach of section 6.1,] the more [damage to defendant].” Additionally, Cynthia stated
that part of the damage to defendant that would result from a sales representative’s breach of
section 6.1 would be the resulting confusion to defendant’s customers. Cynthia explained that
defendant operated within a “small industry,” with “only so many manufacturers out there”; that
defendant was one of the smaller manufacturers; and that defendant and Morilee sold identical
products.
¶ 39 Kyle and Cynthia also testified that damages caused by a sales representative’s breach of
section 6.1 of one of defendant’s sales representative agreements would be difficult to calculate
prior to the time of the breach. Kyle explained that he and Cynthia had revised section 6.2 of the
original template agreement to include the liquidated damages clause reflected in plaintiff’s
agreement only after sales representatives prior to plaintiff had expressed to him and Cynthia that
the $50,000 damages amount that the section originally provided for was too large in comparison
to the amount that the representatives actually earned in commissions. Kyle further explained that
the amount of damages caused by a breach of section 6.1 of defendant’s sales representative
agreements would vary, depending on, for example, the timing of the breach, the circumstances
16
surrounding the breach, the exact nature of the conduct constituting the breach, and the competition
at hand. Additionally, Kyle testified that the commissions that defendant refused to pay plaintiff
were from the very month that defendant believed that plaintiff had violated section 6.1 of the
agreement and, therefore, the plaintiff was no longer entitled to commissions.
¶ 40 Although plaintiff now broadly asserts that the liquidated damages clause in section 6.2 of
the agreement was not a reasonable forecast of defendant’s actual damages caused by a breach of
section 6.1 of the agreement, none of the specific facts that Kyle and Cynthia testified to regarding
their measure of liquidated damages were meaningfully contested at trial. Therefore, we conclude
that the circuit court properly found that the liquidated damages clause in section 6.2 of the
agreement was valid and enforceable. See Pierce v. B&C Electrical, Inc., 104 Ill. App. 3d 309,
311, 314-16 (1982) (concluding that a contract provision was a valid liquidated damages clause
based, in part, on a witness’s uncontradicted testimony at trial that the relevant amount in damages
was uncertain). We also uphold the circuit court’s final judgment in favor of defendant and against
plaintiff.
¶ 41 III. CONCLUSION
¶ 42 The judgment of the circuit court of Du Page County is affirmed.
¶ 43 Affirmed.
17
Siwik v. Jasmine Enterprises Inc., 2026 IL App (3d) 250593
Decision Under Review: Appeal from the Circuit Court of Du Page County, No. 23-LA-
67; the Hon. David E. Schwartz, Judge, presiding.
Attorneys Allison L. Bosley and Diana C. Servos, of S.T. Legal Group, of
for Deerfield, for appellant.
Appellant:
Attorneys Marc D. Sherman, of Marc D. Sherman & Colleagues, P.C., of
for Lincolnwood, for appellee.
Appellee:
18