Ferguson v. Bill Berger Associates, Inc.

704 N.E.2d 830, 302 Ill. App. 3d 61, 235 Ill. Dec. 257
CourtAppellate Court of Illinois
DecidedDecember 8, 1998
Docket1-97-2991
StatusPublished
Cited by75 cases

This text of 704 N.E.2d 830 (Ferguson v. Bill Berger Associates, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ferguson v. Bill Berger Associates, Inc., 704 N.E.2d 830, 302 Ill. App. 3d 61, 235 Ill. Dec. 257 (Ill. Ct. App. 1998).

Opinion

PRESIDING JUSTICE GORDON

delivered the opinion of the court:

In this permissive interlocutory appeal taken pursuant to Supreme Court Rule 306 (155 Ill. 2d R. 306), defendant, Bill Berger Associates, Inc., appeals from the denial of its motion to dismiss the complaint of plaintiff Eva Dreikurs Ferguson. In that complaint, which was filed by Ferguson individually and as executor of the estate of Sadie E. Dreikurs, the plaintiff sought a declaration cancelling the literary agency relationship between the defendants, Bill Berger 1 and Bill Berger Associates, Inc., and the plaintiffs deceased father, Rudolf, and her deceased mother, Sadie. She also sought an accounting of royalty and commission transactions received by the defendants in connection with that relationship. Defendant, Bill Berger Associates, Inc. (hereinafter referred to as defendant), a corporation with its principal place of business in New York, moved to dismiss plaintiffs action, contending that the action violated the forum selection provision of a contract entered into between the plaintiffs father and a German publisher. The defendant alternatively contended that the complaint should be dismissed on the grounds of forum non conveniens. The trial court denied the defendant’s motion, and the defendant’s petition for leave to appeal to this court was granted pursuant to Supreme Court Rule 306. For the reasons discussed below, we affirm the denial of the defendant’s motion to dismiss on the grounds of forum non conveniens. We also find that we are without jurisdiction to hear defendant’s appeal from the portion of the order denying dismissal on the grounds of forum selection.

BACKGROUND FACTS

The pleadings and affidavits of the parties alleged the following facts. The plaintiff is the daughter of deceased author Doctor Rudolf Dreikurs, owner of certain copyrights in connection with books he authored or co-authored. Upon Rudolfs death, the ownership rights to those copyrights passed to plaintiffs mother, Sadie E. Dreikurs, and upon her death temporarily passed to plaintiff as executor of Sadie’s estate. (Upon the closure of that estate, the plaintiff will succeed to all ownership rights in the copyrights.) The pleadings alleged that Rudolf entered into a literary agency relationship with the defendant in 1963 and also at that time executed a publication contract between Meredith Press, a division of Meredith Publishing Company, and himself for the publication of “Children: The Challenge,” a book he co-authored. 2 The complaint also alleged that in 1964 Rudolf executed an agreement with a German publisher, Ernst Klett Verlag, for the German language rights pertaining to that book. (The defendant alleged that it had prepared these contracts for the parties’ signatures.) Each of these agreements, which were attached to plaintiffs complaint and defendant’s motion to dismiss, set forth defendant’s status as Rudolfs agent and authorized the defendant to collect and receive monies due Rudolf and to otherwise act on Rudolfs behalf. The German agreement, unlike the Meredith Press agreement, contained forum selection and choice of law clauses, respectively requiring that all disputes be settled by “defendant’s competent home courts, or at claimant’s election by arbitration in Zurich, Switzerland,” and that the terms of the agreement be governed and interpreted according to the laws of the State of New York.

The plaintiffs complaint alleged that no independent written contracts were executed between Rudolf, Sadie or Eva and the defendant authorizing the defendant to collect royalties and to retain a portion thereof, to make payments to other representatives out of the royalty payments received, or to enter into publishing agreements or addenda to those agreements on their behalf. The plaintiff sought a declaration that, pursuant to the common law and to the Durable Power of Attorney Law (755 ILCS 45/2—1 et seq. (West 1996)), any authority of the defendant to represent the Dreikurs’ copyright interests, pursuant to any agency agreement or power of attorney, terminated by operation of law as of the date of Sadie’s death on February 26, 1996. 3 The plaintiff sought a further declaration that the defendant was not authorized to permit Paul & Peter Fritz AG (unidentified in the complaint) to execute an addendum to the German contract on June 6, 1996.

In its motion to dismiss, the defendant alleged that the gravamen of the plaintiffs complaint arose from execution of an addendum to the German agreement concerning the right to sell Rudolfs book in quality paperback volume form. The defendant alleged that the addendum was executed by Paul & Peter Fritz AG, the successor to Linder AG, defendant’s foreign subagent. (The 1964 German Agreement authorized Linder AG, “acting on behalf of Bill Berger Assoc.,” to act as Rudolfs agent with respect to collecting money due under the terms of the agreement and to act on Rudolfs behalf.) The defendant cited to the forum selection provision of the original German agreement and the requirement that the dispute be resolved in the defendant’s home court, namely, the New York court. The defendant alternatively argued that the dispute should be dismissed on the basis of forum non conveniens. In this argument, which was supported by the affidavit of William Berger and by a letter written by Peter S. Fritz of Paul & Peter Fritz AG, the defendant contended that trial in New York would be more convenient and would better serve the ends of justice. The defendant argued that such a conclusion was warranted by a consideration of the location of the parties and witnesses, the location of the documents, the relative difference in the economic burdens imposed upon the parties by the choice of the forum state, the place of execution and performance of the contract, the choice of law provision in the German agreement, and the public interest factor of burdening Illinois courts with a matter having no “meaningful connection” to Illinois.

In his affidavit attached to defendant’s motion to dismiss, William Berger, president and sole shareholder of the defendant corporation, averred that he was a New York resident and that the defendant was a New York corporation with its principal place of business being in New York. He stated that he was 74 years of age, legally blind, and unable to travel without assistance. He further averred that he never travelled to Illinois to transact literary agency business; that he did not contact Rudolf Dreikurs in Illinois to offer him literary representation; and that Berger Associates did not solicit business in Illinois. He stated that the contract between Rudolf and Meredith Press relative to “Children: The Challenge” was negotiated from the office of Bill Berger Associates in New York; that the contract was last signed by the publisher’s agent in New York and was to be performed in New York; and that Meredith Press’ assignee, Penguin USA, is headquartered in New York. Berger averred that the contract between Rudolf and the German publisher Ernst Klett Verlag was negotiated from the office of Bill Berger Associates in New York and from the office of Berger’s subagent, Linder AG (now known as Paul & Peter Fritz AG), in Switzerland.

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Bluebook (online)
704 N.E.2d 830, 302 Ill. App. 3d 61, 235 Ill. Dec. 257, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ferguson-v-bill-berger-associates-inc-illappct-1998.