The opinion of the court was delivered by: Grady, District Judge.
This is an action under 18 U.S.C. § 1961 et seq., the Racketeer
Influenced and Corrupt Organizations Act ("RICO"), and for fraud,
misappropriation, tortious inducement of termination and
malicious interference with advantageous relations, unfair
competition under Ill.Rev.Stat. ch. 121 1/2, § 262, tortious
breach of employment duties, and tortious retention of
compensation. Defendants have moved to dismiss the complaint for
improper venue, lack of personal jurisdiction and insufficiency
of service of process, or, in the alternative, to transfer. We
grant the motion to dismiss.
On a motion to dismiss, we assume the facts as stated by
plaintiff. We summarize the facts relevant to this motion here.
Plaintiff, Medical Emergency Services Associates ("MESA"), is
an Illinois medical corporation which has its principal place of
business in Buffalo Grove, Illinois. MESA contracts with
hospitals to provide physicians to staff emergency rooms and
subcontracts with physicians to service its primary contracts. On
July 31, 1978, MESA contracted with defendant Orlando Regional
Medical Center, of Orlando, Florida, to provide emergency medical
services and staff there for a period of one year, with automatic
one-year renewals until either party terminated the contract in
accordance with its provisions. The contract continued in force
until it was terminated on March 31, 1982. MESA entered into
individual contracts of employment with each of
defendant-physicians Duplis, Wolfson, Bautista, Baguio, Wilson
and Castellaneta to provide emergency medical services, and each
was assigned to Orlando Medical. Each of these contracts of
employment provided that it would remain in force until it was
terminated by either party upon 90 days' notice.
MESA's complaint alleges that prior to December 23, 1981, and
while employed by MESA, one or more of defendants Duplis,
Wolfson, Bautista, Baguio, Wilson and Castellaneta conceived and
embarked upon a plan, scheme and course of conduct to form a
group, organization or enterprise to replace MESA as the provider
of emergency medical services for Orlando General. The complaint
alleges that in furtherance of this plan, one or more of these
defendants attempted to and did solicit the remainder of the
defendants and others to join this plan and scheme. The scheme,
as outlined in plaintiff's complaint, basically was that each of
the physicians would simultaneously quit their employment with
MESA and form another group to provide the same services to
Orlando General. The complaint alleges further that the
defendants conspired to conceal this scheme from MESA.
Defendants have moved to dismiss the complaint for improper
venue, lack of personal jurisdiction and insufficiency of service
of process, or, in the alternative, to transfer to the Middle
District of Florida.
Because this action is founded on both RICO*fn2 and diversity of
citizenship, we look to 28 U.S.C. § 1391(b) to determine whether
venue is proper.*fn3 That section provides:
A civil action wherein jurisdiction is not founded
solely on diversity of citizenship may be brought
only in the judicial district where all defendants
reside, or in which the claim arose, except as
otherwise provided by law.
28 U.S.C. § 1391(b). Plaintiff argues that venue is proper in the
Northern District of Illinois because, according to plaintiff,
the claim arose here.
Plaintiff argues that the claim arose in the Northern District
of Illinois where,
. . each defendant engaged in overt acts in
furtherance of the conspiracy by mailing into
Illinois simultaneous notices of contract
termination, where the injurious effect of all of the
defendants [sic] conduct was felt, where the "target"
of the tortious ...