K & J Management Inc. v. Kyles

No. 98L 012726 (Ill. Cir. Ct. Cook County filed Nov. 14, 1998). ; Clearinghouse Number: 52259

Description

Management Firm Sues Employment Testers for Fraud

Abstract

Plaintiff management firm filed suit alleging that testers employed by the Legal Assistance Foundation of Chicago (LAFC) committed fraud by applying for a job in which they had no genuine interest and that LAFC wrongfully financed the federal lawsuit brought by testers. Testers—two African American women—applied and interviewed for a receptionist position with a security services firm managed by plaintiff. When firm did not offer either tester a job, testers sued firm for racially discriminatory hiring practices (see Kyles v. J.K. Guardian Security Servs. Inc., Clearinghouse No. 52,258). LAFC, which had been assigned all damages by the testers, financed the lawsuit. In its complaint plaintiff argues that LAFC hired testers to pose as job seekers for purposes of manufacturing a basis for a racial discrimination lawsuit against an employer. Plaintiff alleges that testers’ statements when they applied that they were interested in the advertised position and that they could begin work as soon as possible were false and untrue. Testers did not have the characteristics and qualifications described in their résumés and employment applications. Plaintiff argues that, , in reliance on testers’ false statements, it wasted time and resources interviewing, screening, and processing their applications. Firm also suffered damage to its goodwill and reputation by having to defend testers’ lawsuit. Plaintiff alleges that, because LAFC had no interest in testers’ suit but financed it in consideration for receiving damages if successful, the agreement between testers and LAFC is champertous and against public policy. Plaintiff seeks compensatory and punitive damages.

Additional Information

Attorney Information
Defendants represented by Tony Huizenga, Legal Assistance Foundation of Chicago, 111 W. Jackson Blvd., Chicago, IL 60604; 312.341.1070.
Docket Date
1998-11-14 00:00:00+00:00

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