In the United States District Court for the Northern District of Illinois Eastern Division Surfside Non-Surgical Orthopedics, P
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Case: 1:18-cv-00566 Document #: 47 Filed: 06/25/18 Page 1 of 31 PageID #:227 IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION SURFSIDE NON-SURGICAL ) ORTHOPEDICS, P.A., individually and ) on behalf of all others similarly-situated, ) ) Plaintiff, ) ) v. ) Case No.: 1:18-cv-00566 ) ALLSCRIPTS HEALTHCARE ) Hon. Sara L. Ellis SOLUTIONS, INC., ) ) Hon. Jeffrey Cole, Magistrate Defendant. ) MEMORANDUM IN SUPPORT OF DEFENDANT ALLSCRIPTS HEALTHCARE SOLUTIONS, INC.’S MOTION TO DISMISS THE CLASS ACTION COMPLAINT Case: 1:18-cv-00566 Document #: 47 Filed: 06/25/18 Page 2 of 31 PageID #:228 TABLE OF CONTENTS INTRODUCTION......................................................................................................................... 1 RELEVANT FACTS .................................................................................................................... 2 I. THE PARTIES ...................................................................................................................... 2 II. THE ATTACK ON THE LLC HOSTING ENVIRONMENT ......................................... 4 III. PLAINTIFF’S CONTRACT WITH LLC .......................................................................... 4 IV. PLAINTIFF’S ALLEGED CLAIMS AGAINST INC. ...................................................... 5 ARGUMENT ................................................................................................................................. 5 I. PLAINTIFF’S CLAIMS AGAINST INC. MUST BE DISMISSED ................................ 5 II. INC. CANNOT BE HELD RESPONSIBLE FOR THE ACTS OF LLC ........................ 8 III. PLAINTIFF SHOULD PROCEED AGAINST THE PROPER PARTY IN THE PROPER VENUE .............................................................................................................. 11 IV. THE CLAIMS ARE ALSO SUBJECT TO DISMISSAL UNDER RULE 12(b)(6) ...... 12 A. Plaintiff Fails to State a Claim for Breach of Contract (Count II) ...................................... 13 B. Plaintiff’s Negligence Claims Also Fail as a Matter of Law (Count I) .............................. 14 1. The Economic Loss Rule Bars Plaintiff’s Claims ............................................................ 15 2. INC. Did Not Proximately Cause Plaintiff’s Alleged Injuries......................................... 16 C. Plaintiff’s Unjust Enrichment Claim Fails as a Matter of Law (Count III) ........................ 17 D. Plaintiff’s Illinois Statutory Claims Fail as a Matter of Law (Counts IV and V) ............... 18 1. The U.S. Constitution And Illinois Choice-Of-Law Principles Forbid Extraterritorial Application Of Illinois Law In This Case ............................................................................. 18 2. Plaintiff Has Not Pleaded Fraud With Sufficient Particularity Under Rule 9(b) ........... 21 CONCLUSION ........................................................................................................................... 23 i Case: 1:18-cv-00566 Document #: 47 Filed: 06/25/18 Page 3 of 31 PageID #:229 TABLE OF AUTHORITIES Page(s) Cases Apex Digital, Inc. v. Sears, Roebuck & Co., 572 F.3d 440 (7th Cir. 2009) .................................................................................................5, 6 Ashcroft v. Iqbal, 556 U.S. 662 (2009) ...........................................................................................................12, 13 Avery v. State Farm Mut. Auto. Ins. Co., 835 N.E.2d 801 (Ill. 2005) .......................................................................................................20 Barbara’s Sales, Inc. v. Intel Corp., 879 N.E.2d 910 (2007).............................................................................................................20 In re Barnes & Noble Pin Pad Litig., No. 12–cv–8617., 2013 WL 4759588 (N.D. Ill. Sept. 3, 2013)...............................................18 Barnes v. Gulf Power Co., 517 So. 2d 717 (Fla. Dist. Ct. App. 1987) ...............................................................................17 Beaufort Builders, Inc. v. White Plains Church Ministries, Inc., 783 S.E.2d 35 (N.C. Ct. App. 2016) ........................................................................................15 Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) .................................................................................................................12 Bennett v. Spear, 520 U.S. 154 (1997) .................................................................................................................16 Berger v. PIKR, Ltd., No. 14 C 8543, 2015 WL 2208200 (N.D. Ill. May 8, 2015) ...............................................3, 19 BMW of N. Am., Inc. v. Gore, 517 U.S. 559 (1996) .................................................................................................................18 Booe v. Shadrick, 369 S.E.2d 554 (N.C. 1988) .....................................................................................................17 Brownmark Films, LLC v. Comedy Partners, 682 F.3d 687 (7th Cir. 2012) ...................................................................................................13 Wallace ex rel. Cencom Cable Income Partners II, Inc., L.P. v. Wood, 752 A.2d 1175 (Del. Ch. 1999)................................................................................................14 Chelsea Family Pharmacy, PLLC v. Medco Health Sols., Inc., 567 F.3d 1191 (10th Cir. 2009) ...............................................................................................12 ii Case: 1:18-cv-00566 Document #: 47 Filed: 06/25/18 Page 4 of 31 PageID #:230 City of Chicago v. Beretta U.S.A. Corp., 821 N.E.2d 1099 (Ill. 2004) .....................................................................................................16 Coll. Rd. Animal Hosp., PLLC v. Cottrell, 763 S.E.2d 319 (N.C. Ct. App. 2014) ......................................................................................17 Combined Energies v. CCI, Inc., 514 F.3d 168 (1st Cir. 2008) ....................................................................................................12 Cornell Univ. v. Illumina, Inc., C.A. No. 10–433–LPS–MPT, 2018 WL 481782 (D. Del. Jan. 19, 2018) ...............................12 Davis v. Packer Eng’g, Inc., No. 11–cv–07923, 2016 WL 1270425 (N.D. Ill. Mar. 31, 2016) ............................................11 Decatur Mem’l Hosp. v. Conn. Gen. Life Ins. Co., 990 F.2d 925 (7th Cir. 1993) ...................................................................................................16 DeValk Lincoln Mercury, Inc. v. Ford Motor Co., 811 F.2d 326 (7th Cir. 1987) ...................................................................................................20 Ennenga v. Starns, 677 F.3d 766 (7th Cir. 2012) ...................................................................................................13 Ernst v. Parkshore Club Apartments Ltd. P’ship, 863 F. Supp. 651 (N.D. Ill. 1994) ............................................................................................17 Stojanik ex rel. Estate of Woodring v. R.E.A.C.H. of Jackson Cty., Inc., 668 S.E.2d 786 (N.C. Ct. App. 2008) ................................................................................16, 17 U.S. ex rel. Grenadyor v. Ukrainian Vill. Pharmacy, Inc., 772 F.3d 1102 (7th Cir. 2014) .................................................................................................21 Henson v. CSC Credit Servs., 29 F.3d 280 (7th Cir. 1994) .................................................................................................3, 19 Hughes Masonry Co. v. Greater Clark Cty. Sch. Bldg. Corp., 659 F.2d 836 (7th Cir. 1981) ...................................................................................................13 Hyatt Johnson USA 2004, LLC v. Goldsmith, 2016 IL App (1st) 151622-U ...................................................................................................17 Ingersoll v. Klein, 262 N.E.2d 593 (1970).............................................................................................................20 Int’l Equip. Trading, Ltd. v. Illumina, Inc., No. 17 C 5010, 2018 WL 1087641 (N.D. Ill. Feb. 28, 2018) ..................................................20 Irwin & Leighton, Inc. v. W.M. Anderson Co., 532 A.2d 983 (Del. Ch. 1987)....................................................................................................9 iii Case: 1:18-cv-00566 Document #: 47 Filed: 06/25/18 Page 5 of 31 PageID #:231 J. McIntyre Mach., Ltd. v. Nicastro, 564 U.S. 873 (2011) ...................................................................................................................5 Johnson v. Merrill Lynch, Pierce, Fenner & Smith, Inc., 719 F.3d 601 (7th Cir. 2013) .................................................................................................6, 8 Johnson v. Orkin, LLC, 556 F. App’x 543 (7th Cir. 2014) ............................................................................................12 Johnson v. SmithKline Beecham Corp., 724 F.3d 337 (3d Cir. 2013).......................................................................................................7 Joyeria Paris, SRL v. Gus & Eric Custom Servs., Inc., No. 13–22214–CIV., 2013 WL 6633175 (S.D. Fla. Dec. 17, 2013) .......................................16 Kawczynski v. Am. Coll. of Cardiology, 670 F. App’x 398 (7th Cir. 2016), cert. denied, 137 S. Ct. 1821 (2017) ...................................6