George S. May International Co. v. Xcentric Ventures, LLC

409 F. Supp. 2d 1052, 34 Media L. Rep. (BNA) 1281, 2006 U.S. Dist. LEXIS 1890, 2006 WL 120156
CourtDistrict Court, N.D. Illinois
DecidedJanuary 18, 2006
Docket04 C 6018
StatusPublished
Cited by5 cases

This text of 409 F. Supp. 2d 1052 (George S. May International Co. v. Xcentric Ventures, LLC) 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
George S. May International Co. v. Xcentric Ventures, LLC, 409 F. Supp. 2d 1052, 34 Media L. Rep. (BNA) 1281, 2006 U.S. Dist. LEXIS 1890, 2006 WL 120156 (N.D. Ill. 2006).

Opinion

OPINION AND ORDER

NORGLE, District Judge.

Before the court are Defendant Xcentric Ventures, LLC’s and Defendant Ed Magedson’s Motions to Dismiss for Lack of Jurisdiction. For the following reasons, these Motions are denied.

I. INTRODUCTION

A. Facts

George S. May International Company (“May”) is a management consulting firm which is incorporated, organized, and existing under the laws of Delaware. May’s principle place of business is Park Ridge, Illinois. Xcentric Ventures, LLC (“Xcentric”) is an Arizona limited liability corporation located in Phoenix, Aizona, and is listed as the owner of RipOffReport.com and BadBusinessBureau.com (the “Sites”). Ed Magedson (“Magedson”) is the owner and manager of Xcentric and the Sites. Magesdon is a citizen of Aizona. The Sites style themselves as consumer advocate resources. 1 Individuals accessing the Sites can search for particular companies by *1054 name, or search specific industries or states. Site visitors may then read postings made by disgruntled consumers explaining how they were allegedly “ripped off’ by various companies. Visitors can also post their own comments about various companies. Visitors must register with the Sites by providing identifying information such as a name, email and street address in order to post comments.

Visitors to the Sites may also purchase a copy of the “Do-It-Yourself Guide: How to Get Rip-Off Revenge” for $21.95. This book may be purchased with a credit or debit card through PayPal, or with a check or money order sent to Defendants’ post office box in Tempe, Arizona. The court notes that the $21.95 includes priority shipping to anywhere in the United States. Visitors may also make donations to the Sites.

Various individuals have posted negative comments regarding May on the Sites. These postings accuse May, and its officers and employees, of, inter alia, fraud, larceny, possession of child pornography, and possession of controlled substances. The following is a brief sampling of some of these postings.

Submitted: 7/18/2003: George S. May International deceptive company, false promises, raped & pillaged us, ripoff. Submitted: 6/17/2004: George S. May ripoff “The Prostitute of the Consulting Business.” A complete, total, incredibly horrible, lying, deceitful company. Submitted: 8/2/2004: [T]his “consulting” agency is conducting business in a manner that is felonious and illicit at its core ... [May] encourages and fosters deception on the part of the employee ... Unfortunately, deception, deceit, and lies are used more often than not when convincing a client to retain May’s consulting services ... [L]arceny is an admirable trait that is a prerequisite for any successful George S. May analyst ... Submitted 8/31/2004: Owner of George S. May Company child pornography and other heineous [sic] crimes. The founder of this company has a background of child pornography and other heineous [sic] crimes ... [H]e offers drugs to junior high school children to get them to engage in sex with each other on tape. He has the tapes in his office ... There is some secret porn club of pedifiles [sic] at George S. May which involves the office directors. When they have district meetings they watch kiddie videos and smoke crack.
Submitted: 9/2/2004: These guys are all a bunch of crooks.
Submitted: 12/24/2005: I worked for [G]eorge [S]. [M]ay and they rip off their clients by billing for travel fees that do not occur.
Submitted: 12/27/2005: [L]ying and cheating [] permeates throughout this organization.

B. Procedural History

In response to these postings, May filed suit in the Northern District of Illinois on September 15, 2004. May alleges that Defendants have engaged in “false descriptions and representations, trade libel and deceptive trade practices.” Compl., ¶ 1. The Complaint includes counts styled “False or Misleading Description and Misrepresentation,” “Defamation/Libel,” “Illinois Unfair and Deceptive Business Practices,” and “Illinois Uniform Deceptive Trade Practices.”

The court granted May’s Motion for a Temporary Restraining Order (“TRO”) on September 24, 2004, enjoining Defendants from “making, hosting, or transmitting false or deceptively misleading, descriptions, statements or representations concerning George S. May, its business, owner, officers, employees and/or agents ...” This TRO was extended by agreement of *1055 the parties in open court on October 8, 2004. On that same date, May moved the court to find Defendants in contempt of court for violating the TRO. After the parties briefed this matter, the court determined that Defendants were in violation of the TRO, and held Defendants in contempt of court. The penalties for this violation remain under advisement.

On February 8, 2005, Xcentric filed a Motion to Dismiss for Lack of Jurisdiction. Magedson filed a similar Motion on August 5, 2005. These Defendants assert that because they have had no minimum contacts with the State of Illinois, the court has no personal jurisdiction over them. These Motions are fully briefed and before the court.

II. DISCUSSION

A. Standard of Decision

1. Personal Jurisdiction over Out-of-State Defendants

Once a defendant has challenged a court’s exercise of personal jurisdiction, the plaintiff has the burden of demonstrating that the court’s exercise of personal jurisdiction over a defendant is proper. See RAR, Inc. v. Turner Diesel, Ltd., 107 F.3d 1272, 1276 (7th Cir.1997). It is well established law that “[a] federal court’s exercise of personal jurisdiction over a non-resident defendant is proper ‘only if a court of the state in which it sits would have such jurisdiction.’ ” Edelson v. Ch’ien, 352 F.Supp.2d 861, 865-66 (N.D.Ill.2005) (quoting Klump v. Duffus, 71 F.3d 1368, 1371 (7th Cir.1995)); see also Deluxe Ice Cream Co. v. R.C.H. Tool Corp., 726 F.2d 1209, 1212 (7th Cir.1984). This court therefore has jurisdiction over this matter “ ‘only if [an Illinois State Court] would have such jurisdiction.’ ” Edelson, 352 F.Supp.2d at 866 (quoting Klump, 71 F.3d at 1371).

The inquiry into whether this court has jurisdiction over these Defendants must therefore begin with “an application of the statutory law of [Illinois].” Jennings v. AC Hydraulic A/S, 383 F.3d 546, 548 (7th Cir.2004). After considering Illinois’ statutory framework concerning jurisdiction over non-resident defendants, the court must then consider whether its exercise of jurisdiction would “comport[] with due process.”

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409 F. Supp. 2d 1052, 34 Media L. Rep. (BNA) 1281, 2006 U.S. Dist. LEXIS 1890, 2006 WL 120156, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-s-may-international-co-v-xcentric-ventures-llc-ilnd-2006.