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Consolidated Commercial Controls, Inc. v. 5 Star Supply

November 26, 2008


The opinion of the court was delivered by: Virginia M. Kendall, United States District Judge

Judge Virginia M. Kendall


Plaintiff Consolidated Commercial Controls, Inc. ("CCC") brought suit against Defendants 5 Star Supply LLC, 5 Star Management Group (collectively "5 Star"), Linda A. Williams ("L.Williams"), Clifford J. Williams II ("C. Williams"), Stephen J. Pursel ("Pursel"), Philip J. Caruso ("Caruso"), and Robert G. Mastrofrancesco ("Mastrofrancesco") (collectively " Individual Defendants") asserting violations of the Illinois Trade Secrets Act, breach of contract, tortious interference with contract, violation of the Computer Fraud and Abuse Act, conversion breach of fiduciary duty and civil conspiracy and seeking injunctive relief and compensatory and punitive damages. Defendants now move this Court to dismiss CCC's claims because this Court lacks personal jurisdiction. For the reasons stated below, Defendants' Motion to Dismiss for Lack of Personal Jurisdiction is granted.


CCC, a distributor of foodservice equipment, parts and supplies, is a corporation organized under the laws of the state of Delaware with its principal place of business in Illinois. Compl. at ¶ 3. On or about October 31, 2007, CCC acquired one of its competitors, International Commercial Supply Company, LLC ("ICS"), a company based in Connecticut. Id at ¶¶ 1, 18. At the time of the acquisition, the Individual Defendants were employees of ICS. Id. The Individual Defendants were and remain citizens of Connecticut. In 2008, after the acquisition, L. Williams resigned from CCC and formed 5 Star. Id. at ¶¶ 31-33. The rest of the Individual Defendants resigned their employment with CCC soon thereafter and became employees of 5 Star, a company organized under the laws of Connecticut with its principal place of business in Connecticut. Id. at ¶¶ 36-37.

5 Star has no operations or customers in Illinois. L. Williams Dec. at 18. None of the Defendants own property, maintain bank accounts, or conduct operations in Illinois. L. Williams Dec. at ¶ 13; C. Williams Dec. at ¶ 7; Pursel Dec. at ¶ 10; Caruso Dec. at 7; MASTROFRANCESCO Dec. at ¶ 10.

During their brief employment with CCC, the Individual Defendants had minimal contact with the state of Illinois. Specifically, 1) all Individual Defendants attended a management meeting at CCC's offices in Chicago; 2) L. Williams four additional meetings in CCC's office in Chicago, Illinois; 3) C. Williams and L. Williams attended the CCC Christmas party in Illinois; and 4) Caruso attended one additional meeting at CCC's offices in Illinois. L. Williams Dec. at ¶¶ 15, 16; C. Williams Dec. at ¶ 9; Pursel Dec. at ¶ 12; Caruso Dec. at ¶¶ 9, 10; Mastrofrancesco Dec. at ¶ 12. In addition, Mastrofrancesco attended eight trade shows in Illinois over twenty-seven years at ICS's expense, and Pursel attended three trade shows in Illinois on behalf of ICS and a prior employer. Mastrofrancesco Dec. at ¶ 14; Pursel Dec. at ¶ 13.

Soon after the Individual Defendants' departures, CCC undertook a forensic examination of each of their computers and discovered that a substantial number of files had been transferred or deleted circa the time of the Individual Defendants' resignations. Compl. at ¶¶ 39-42. Concerned that the Individual Defendants intended to use CCC's files for the gain of 5 Star, on July 17, 2008, CCC sent a letter to each of them demanding that they contact CCC's counsel and the return of any CCC or ICS property or documents. Id. at ¶¶ 43-44. The letter further stated that if CCC did not receive a response within five business days, it would seek a preliminary injunction. Id.

On July 24, 2008, CCC received a letter from counsel representing 5 Star and the Individual Defendants enclosing a complaint filed that day in the United States District Court for the District of Connecticut. Id. at ¶ 45, Ex. F. The Complaint sought a declaratory judgment that "the individual Plaintiffs' employment with 5 Star Supply LLC does not violate any contractual or legal obligations of the individual Plaintiffs to Defendant or any alleged doctrine of inevitable disclosure of confidential information." Id. The complaint also included a claim by Caruso, C. Williams, and Mastrofrancesco alleging that CCC did not pay them for unused vacation days or for their final two days of employment. Id. Thereafter, on August 1, 2008, CCC filed a Complaint seeking injunctive and other relief in this Court.


In reviewing a motion to dismiss for lack of personal jurisdiction, the Court accepts all well-pleaded factual allegations in the complaint as true unless controverted by the defendant's affidavits.

See Turncock v. Cope, 816 F.2d 332, 333 (7th Cir. 1987), superceded on other grounds. Where affidavits submitted by the plaintiff create a factual dispute, all disputed facts are construed in the plaintiff's favor. Logan Prods., Inc. v. Optibase, Inc., 103 F.3d 49, 52 (7th Cir. 1996).

Once a defendant challenges the court's exercise of personal jurisdiction, the plaintiff bears the burden of demonstrating that personal jurisdiction exists. See Jennings v. AC Hydraulic A/S, 383 546, 548 (7th Cir. 2004). When a court decides a motion solely on the written submissions, the plaintiff bears the burden to establish a prima facie case that jurisdiction may be exercised. See Purdue Research Foundation v. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003). The Court first reviews whether statutory grounds exist for personal jurisdiction, and then determines if the exercise of jurisdiction would be consistent state and federal constitutional law. See Central States, Southeast and Southwest Areas Pension Fund v. Reimer Express World Corp., 230 F.3d 934, 939 (7th Cir. 2000). A federal court sitting in diversity has personal jurisdiction over a defendant only if the courts of the state in which it sits would have personal jurisdiction. See RAR, Inc. v. Turner Diesel, Ltd., 107 F.3d 1272, 1275 (7th Cir. 1997).

"A federal court borrowing a state jurisdictional statute may acquire personal jurisdiction only to the extent that the state law authorizes service of process." Hyatt Int'l Corp. v. Coco, 302 F.3d 707, 713 (7th Cir. 2002). The Illinois long-arm statute governs service of process in Illinois and "permits its courts to exercise jurisdiction on any basis permitted by the Illinois and United States constitutions." See 735 ILCS 5/2-209(c); Hyatt, 302 F.3d at 714. Due process requirements for jurisdiction under the Illinois Constitution parallel due process requirements for jurisdiction under the federal Constitution; therefore, the inquiry collapses into whether the exercise ...

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