Greenberg v. Miami Children's Hospital Research Institute, Inc.

208 F. Supp. 2d 918, 2002 U.S. Dist. LEXIS 13001, 2002 WL 1483266
CourtDistrict Court, N.D. Illinois
DecidedJuly 8, 2002
Docket00 C 6779
StatusPublished
Cited by6 cases

This text of 208 F. Supp. 2d 918 (Greenberg v. Miami Children's Hospital Research Institute, Inc.) 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
Greenberg v. Miami Children's Hospital Research Institute, Inc., 208 F. Supp. 2d 918, 2002 U.S. Dist. LEXIS 13001, 2002 WL 1483266 (N.D. Ill. 2002).

Opinion

MEMORANDUM OPINION AND ORDER

GETTLEMAN, District Judge.

This ease arises from a noble pursuit by the parties to detect and someday cure a fatal genetic disorder called Canavan disease. Before the court are a motion to dismiss for lack of personal jurisdiction and venue filed by defendant Miami Children’s Hospital Research Institute, Inc. and defendant Variety Children’s Hospital, d/b/a Miami Children’s Hospital (collectively “Children’s Hospital”), 1 motions to dismiss pursuant to Fed.R.Civ.P. 12(b)(6) for failure to state a claim upon which relief may be granted, or in the alternative, to transfer venue of the case pursuant to 28 U.S.C. § 1404(a) filed by Children’s Hospital and defendant Reuben Matalón (“Ma-talón”), and plaintiffs’ motion to strike the affidavit of Steven Melnick. Because the court finds merit with Children’s Hospital’s motion to dismiss for lack of personal jurisdiction and lack of venue, in the interests of justice, the court sua sponte transfers venue of this case pursuant to 28 U.S.C. § 1406(a), to the Southern District of Florida where the court will have personal jurisdiction and venue over all parties to this action. 2

BACKGROUND

Plaintiffs Daniel Greenberg (“Green-berg”), Fern Kupfer (“Kupfer”), Frieda Eisen (“Eisen”), David Green (“Green”), Canavan Foundation, Dor Yeshorim and National Tay-Sachs & Allied Diseases Association, Inc. (“NTSAD”), sued Children’s Hospital and Matalón, alleging diversity jurisdiction under 28 U.S.C. § 1332. The individual plaintiffs are parents of children afflicted with Canavan disease, a fatal, incurable, genetic disorder that occurs most frequently in Ashkenazi Jewish families.' Defendants are a physician/researcher, a Children’s hospital and the hospital’s research affiliate. While Greenberg is an Illinois resident, all six other plaintiffs are citizens of different states including Iowa, New York, Virginia and Massachusetts. Defendant Matalón is a citizen of Texas, and Children’s Hospital are citizens of Florida.

The complaint alleges that in 1987 there was no way to identify who was a carrier of Canavan disease, nor was there a way to identify a fetus inflicted with Canavan *921 disease. Greenberg approached Matalón, a research physician who was at that time affiliated with the University of Illinois at Chicago (“UIC”), provided him with information about Canavan and requested his involvement in discovering the gene associated with Canavan disease so that tests could be performed to determine carriers and allow for prenatal testing for the disease. Over the next seven years, Green-berg provided Matalón with tissue and blood samples from members of his family, and following the death of his son afflicted with Canavan, provided Matalón with tissue samples from his diseased son’s brain and other major organs. During that time, in 1990, Matalón moved his research to Children’s Hospital. The other individual plaintiffs from jurisdictions outside Illinois, and Dor Yeshorim, a New York corporation, supplied Matalón with blood, tissue and urine samples beginning in the late 1980s. Plaintiffs Greenberg, Green, Canavan and NTSAD facilitated Matalon’s research on Canavan disease through monetary contributions.

The individual plaintiffs allege that they provided Matalón with such samples and confidential filial information “with the understanding and expectation that such samples and information would be used for the specific purpose of researching Cana-van disease and identifying mutations in the Canavan gene which could lead to carrier detection within their families and benefit the population at large.” Plaintiffs further allege that it was their “understanding that any carrier and prenatal testing developed in connection with the research for which they were providing essential support would be provided on an affordable and accessible basis, and that Matalon’s research would remain in the public domain to promote the discovery of more effective prevention techniques and treatments and, eventually, to effectuate a cure for Canavan disease.” Plaintiffs allege that this “understanding” was derived in part from “their experience in community testing for Tay-Sachs disease, another deadly genetic disease that occurs most frequently in families of Ashkenazi Jewish descent.”

Plaintiffs allege that at no time were they informed that defendants intended to seek a patent on their research. Consistent with plaintiffs’ understanding, Cana-van Foundation launched a free testing program at Mt. Sinai Hospital in New York City. In September 1994, unbeknownst to plaintiffs, Miami Children’s Research Hospital applied for a patent on the Canavan disease gene and related applications which included carrier and prenatal testing. Matalón and his collaborators were listed as inventors and, through the patent, defendants acquired the ability to restrict any activity related to the Canavan disease gene. Plaintiffs first learned of this patent in November 1998 “when [Children’s Hospital] revealed their intention to limit Canavan disease testing through a campaign of restrictive licensing of the patent.” Plaintiffs allege that Children’s Hospital has sent “enforcement letters” “threatenfing]” centers offering Canavan testing that Children’s Hospital “intended to enforce vigorously [their] intellectual property rights relating to carrier and patient DNA tests for Canavan Disease mutations,” and have sought to “substantially restrict the number of laboratories authorized to conduct Canavan disease testing through exclusive licensing agreements.” Plaintiffs allege that defendants have earned significant royalties from Canavan disease testing in excess of $75,000 through the enforcement of their gene patent, and that Matalón has personally profited by receiving a recent substantial federal grant to undertake research on the gene.

Based on these facts, plaintiffs filed a six-count complaint against defendants as *922 serting the following causes of action: 1) lack of informed consent; 2) breach of fiduciary duty; 3) unjust enrichment; 4) fraudulent concealment; 5) conversion; and, 6) misappropriation of trade secrets. Plaintiffs generally seek a permanent injunction restraining defendants from enforcing their patent rights, and damages in the form of all royalties defendants have received on the patent as well as all financial contributions plaintiffs made to benefit defendants.

PERSONAL JURISDICTION

Evaluating a Rule 12(b)(2) motion to dismiss for lack of personal jurisdiction, plaintiffs bear the burden of establishing a prima facie case for personal jurisdiction. See, Central States, Southeast and Southwest Areas Pension Fund v. Reimer Express World Corp. (“Reimer Express”), 230 F.3d 934, 939 (7th Cir.2000); Steel Warehouse of Wisc. Inc. v. Leach,

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Bluebook (online)
208 F. Supp. 2d 918, 2002 U.S. Dist. LEXIS 13001, 2002 WL 1483266, Counsel Stack Legal Research, https://law.counselstack.com/opinion/greenberg-v-miami-childrens-hospital-research-institute-inc-ilnd-2002.