Beaton v. SpeedyPC Software

CourtDistrict Court, N.D. Illinois
DecidedMarch 30, 2023
Docket1:13-cv-08389
StatusUnknown

This text of Beaton v. SpeedyPC Software (Beaton v. SpeedyPC Software) is published on Counsel Stack Legal Research, covering District Court, N.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Beaton v. SpeedyPC Software, (N.D. Ill. 2023).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

ARCHIE BEATON, individually and on ) behalf of others similarly situated, ) ) Plaintiff, ) ) No. 13-cv-08389 v. ) ) Judge Andrea R. Wood SPEEDYPC SOFTWARE, ) ) Defendant. )

MEMORANDUM OPINION AND ORDER In this certified class action, Lead Plaintiff Archie Beaton claims that Defendant SpeedyPC Software (“SpeedyPC”),1 a Canadian computer software company, engaged in fraudulent and deceptive marketing practices for SpeedyPC Pro (“Software”), a software product that supposedly diagnoses and repairs various computer errors, optimizes computer performance, and protects computers from malware. Beaton asserts claims on behalf of himself and the Class for breach of the implied warranties of fitness for a particular purpose and merchantability provided by British Columbia’s Sale of Goods Act (“SGA”), R.S.B.C. 1996, c 410 (Can.), and claims on behalf of himself and the Subclass for violation of the Illinois Consumer Fraud and Deceptive Business Practices Act (“ICFA”), 815 ILCS 505/1 et seq. Now before the Court is SpeedyPC’s motion for summary judgment. (Dkt No. 333.) For the following reasons, SpeedyPC’s motion is granted in part and denied in part.

1 SpeedyPC Software was a trade name owned and used by ParetoLogic, Inc. (Pl.’s Resp. to Def.’s Statement of Material Facts ¶ 3, Dkt. No. 340.) BACKGROUND For purposes of summary judgment, the Court views the evidence in the light most favorable to Beaton as the nonmoving party and draws all reasonable inferences in his favor. Weber v. Univs. Rsch. Ass’n., Inc., 621 F.3d 589, 592 (7th Cir. 2010). Except where otherwise noted, the following facts are undisputed.

On August 24, 2012, Beaton, a resident of Illinois, purchased and downloaded SpeedyPC’s Software to his computer. (Pl.’s Resp. to Def.’s Statement of Material Facts (“PRDSF”) ¶ 10, Dkt. No. 340; Def.’s Resp. to Pl.’s Statement of Additional Material Facts (“DRPSAF”) ¶ 12, Dkt. No. 344.) Advertisements for the product stated that it increased computer speed and performance, removed harmful computer errors, and protected users’ privacy and security. (DRPSAF ¶ 1.) The Software purported to “Fix Common Errors,” “Boost PC Speed,” “Clean Up Clutter,” and “Fix All” problems. (Id. ¶ 2.) Upon viewing these advertisements, Beaton purchased the Software online. (Id. ¶¶ 10–11.) Before he installed the Software, however, SpeedyPC required that Beaton accept all terms

of its End User License Agreement (“EULA”). (PRDSF ¶¶ 11, 13.) The EULA included the following provisions: Subject to the terms and conditions of this Agreement, SpeedyPC Software grants to you a limited, non-exclusive, non-transferable license to use or evaluate the Software . . . . You have purchased a license to use the Software. . . . This Agreement is a legally binding agreement between SpeedyPC Software and the user(s) of this Software. . . . This Agreement shall be governed exclusively by the laws of the Province of British Columbia and the laws of Canada applicable therein . . . .

(Id. ¶ 14.) Beaton accepted the EULA by clicking an “I Agree” button that appeared on his computer screen (id. ¶ 13); and he received the Software electronically by downloading it from the internet along with a license, rather than receiving a physical copy. (Id. ¶¶ 7, 10.) Beaton claims that he purchased the Software from SafeCart, an “intermediary” that marketed the Software and collected payment on behalf of SpeedyPC. (DRPSAF ¶¶ 18, 25.) SpeedyPC characterizes its relationship with SafeCart somewhat differently—according to Speedy PC, it made the Software available to independent resellers via third-party platforms, including RevenueWire doing business as SafeCart. (PRDSF ¶¶ 8, 10.) SpeedyPC thus claims that

Beaton purchased his license for the Software from SafeCart, not SpeedyPC. (Id. ¶ 10.) Beaton, on the other hand, claims that SafeCart was “merely a shopping cart that RevenueWire set up for SpeedyPC to use to sell its software.” (Id. ¶ 10.) Indeed, after his purchase, Beaton’s credit card statement showed a charge from “SafeCart.com*Speedypc” for the purchase of the Software. (DRPSAF ¶ 24.) SpeedyPC was also solely responsible for directly providing Beaton and other licensees with a license key. (Id. ¶ 22.) As described by SpeedyPC’s Chief Executive Officer during his deposition, “[t]here’s no other way for [SpeedyPC] to get [licensees] a license key,” which is the only way to activate the Software. (Id. ¶¶ 21–22.) Beaton claims that after he purchased the Software, he found that it did not function as

advertised. (Id. ¶ 13.) Meanwhile, SpeedyPC denies having made any deceptive advertisements. (Id.) Given his issues with the product, in February 2013, Beaton requested a refund from SpeedyPC. (PRDSF ¶ 18.) SpeedyPC rejected the refund request, stating that it was untimely. (Id.) Beaton subsequently filed the present class action against SpeedyPC, alleging that its false and misleading marketing induced him and other similarly situated persons to purchase the Software. After extensive discovery and motion practice, the Court certified the following Class for purposes of Beaton’s claims for breaches of the implied warranties of fitness for a particular purpose and merchantability under the SGA: “[a]ll individuals living in the United States who downloaded a free trial of SpeedyPC Pro and thereafter purchased the full version between October 28, 2011 and November 21, 2014.” (PRDSF ¶¶ 19, 22.) The Court also certified a Subclass consisting of “all [C]lass members who reside in Illinois” for purposes of Beaton’s claims for fraudulent misrepresentation under the ICFA. (Id. ¶¶ 21, 23.) DISCUSSION Summary judgment is appropriate if the admissible evidence considered as a whole shows

that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law, even after all reasonable inferences are drawn in the non-movant’s favor. Dynegy Mktg. & Trade v. Multiut Corp., 648 F.3d 506, 517 (7th Cir. 2011). Here, SpeedyPC seeks summary judgment on both the claims under the SGA for breach of the implied warranties of fitness for a particular purpose and merchantability and the claims under the ICFA. I. Implied Warranties under the SGA The SGA is “designed to protect a purchaser of goods and sets out sellers’ obligations” attendant to a sale of goods. Conners v. McMillan, 2020 BCPC 230, para. 58 (Can.). Where a contract is silent, the SGA implies warranties to sales of goods under certain conditions. Bhangu

v. Honda Can. Inc., 2021 BCSC 794, para. 64 (Can.). Beaton asserts claims for breach of two implied warranties under the SGA: the implied warranty of fitness for a particular purchase and the implied warranty of merchantability. An implied warranty of fitness for a particular purpose exists if a buyer makes known to the seller the particular purpose for purchasing the goods, the buyer relies on the seller’s skill or judgment, and the seller supplies the goods in the course of its business. R.S.B.C. 1996, c 410, § 18(a) (Can.). Meanwhile, an implied warranty of merchantability exists if a buyer purchases goods from a seller whose business deals in those goods. Id. § 18(b).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Siegel v. Shell Oil Co.
612 F.3d 932 (Seventh Circuit, 2010)
Weber v. Universities Research Ass'n, Inc.
621 F.3d 589 (Seventh Circuit, 2010)
Dynegy Marketing and Trade v. Multiut Corp.
648 F.3d 506 (Seventh Circuit, 2011)
Crichton v. Golden Rule Insurance
576 F.3d 392 (Seventh Circuit, 2009)
Avery v. State Farm Mutual Automobile Insurance
835 N.E.2d 801 (Illinois Supreme Court, 2005)
Medline Industries Inc. v. Maersk Medical Ltd.
230 F. Supp. 2d 857 (N.D. Illinois, 2002)
Simulados Software, Ltd. v. Photon Infotech Private, Ltd.
40 F. Supp. 3d 1191 (N.D. California, 2014)
Int'l Equip. Trading, Ltd. v. Illumina, Inc.
312 F. Supp. 3d 725 (E.D. Illinois, 2018)

Cite This Page — Counsel Stack

Bluebook (online)
Beaton v. SpeedyPC Software, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beaton-v-speedypc-software-ilnd-2023.