Employee’s Home Office not Sufficient to Establish Venue in Illinois

Telecommuting and Venue Challenges

This past year, businesses across the country redefined how work is conducted as many employees moved from corporate offices to home offices, kitchen tables, or family rooms. Many discussions likely focused on liability and security threats for telecommuters, but court venue in pending litigation probably did not top the list. The Supreme Court of Illinois, however, has made this topic relevant.

Background of the Case

In 2016, a negligence action was filed in Cook County against a Missouri corporation. Its principal office and registered agent were in Illinois, and an employee caused an accident in Ohio. The defendants argued that the choice of venue was improper because neither resided nor conducted business in Cook County. Illinois law selects venue based on the county where the defendant resides or where the cause of action occurred. Corporations count as residents in counties where they have a principal office, another office, or conduct business.

Employee Home Office and Venue Considerations

Limited discovery showed that GML hired an employee to service prominent Illinois customers from his home office in Cook County. GML did not reimburse utilities or other office expenses, but hired him due to his proximity to major customers’ headquarters. The plaintiff argued this satisfied the “other office” requirement. The issue reached the Supreme Court of Illinois, which ruled that, in this case, the employee’s home did not meet the Illinois venue statute. The Court stated, “the phrase other office includes any fixed location purposely selected to carry on an activity in furtherance of the corporation’s business activities.”

Implications for Future Cases

The Illinois Supreme Court established a foundation for future venue cases. Justice Kilbride wrote separately that whether an employee’s home office qualifies as an “other office” will depend on the specific facts. Companies with employees working from home due to employment terms or government orders could face venue challenges if sued. Conversely, an individual filing a complaint may be able to select venue based on the location of remote employees.

Read the Full Decision

You can read more about the Illinois Supreme Court’s decision here.