Guaranteed Rate, Inc. v. Rorvig

CourtDistrict Court, N.D. Illinois
DecidedSeptember 13, 2022
Docket1:22-cv-02342
StatusUnknown

This text of Guaranteed Rate, Inc. v. Rorvig (Guaranteed Rate, Inc. v. Rorvig) 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
Guaranteed Rate, Inc. v. Rorvig, (N.D. Ill. 2022).

Opinion

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

GUARANTEED RATE, INC., ) ) Plaintiff, ) Case No. 22 CV 2342 ) v. ) Judge Robert W. Gettleman ) Magistrate Judge Jeffrey Cummings EIRIK RORVIG and NATIONS LENDING ) CORPORATION ) ) Defendants. )

MEMORANDUM OPINION & ORDER

Plaintiff Guaranteed Rate, Inc. (“GRI”) brings this seven-count action against defendants Eirik Rorvig (“Rorvig”) and Nations Lending Corporation (“Nations”) (collectively, “defendants”). Counts I, II, III, and VII against Rorvig allege breach of contract, breach of fiduciary duty, and violations of the Defend Trade Secrets Act, 18 U.S.C. § 1832, and Wisconsin Trade Secrets Act, Wis. Stat. § 134.90.1 Counts V and VI against Nations allege tortious interference with contract and tortious inducement of breach of fiduciary duty, respectively. Plaintiff moves for leave to conduct jurisdictional discovery and an extension of time (Doc. 19) to oppose defendants’ pending motion to dismiss all counts (Doc. 13, 14). The briefing schedule previously set on defendants’ motion to dismiss has been suspended (Doc. 15). For the reasons stated below, plaintiff’s motion (Doc. 19) is granted, but the court imposes certain limitations on plaintiff’s proposed discovery requests. BACKGROUND

Plaintiff GRI brought this action to stop defendants from allegedly “misusing GRI

1 Plaintiff’s amended complaint inexplicably contains two separate Count VIIs against Rorvig and no Count IV against anyone. confidential information and systematically, methodically, and purposefully pilfering entire groups of GRI employees.” Plaintiff is a residential mortgage loan lender organized under Delaware law, with its headquarters in Chicago, Illinois. Defendant Rorvig, a citizen of Wisconsin, worked for plaintiff from December 27, 2019, until his resignation on December 23,

2021. In January 2022, Rorvig began working at defendant Nations. Nations is an Ohio corporation, with its headquarters in Ohio.2 Plaintiff brings distinct but interconnected claims against defendants Rorvig and Nations. Plaintiff alleges that Rorvig misused plaintiff’s confidential information to improperly solicit plaintiff’s employees to resign and begin employment at Nations. Similarly, plaintiff alleges that Nations tortiously interfered with plaintiff’s employee’s contracts and induced plaintiff’s employees to breach their fiduciary duties. Specifically, plaintiff claims that Nations knowingly and intentionally encouraged and induced former and current GRI employees, “including, but not limited to, Rorvig,” to breach their obligations to plaintiff. Plaintiff claims that Nations has engaged in such conduct “since at least November 2021” but as recently as March 14, 2022.

On July 22, 2022, defendants moved to dismiss all plaintiff’s claims. This motion remains pending before the court. As relevant to plaintiff’s instant motion, defendants claim that the court lacks personal jurisdiction over Nations under Rule 12(b)(2).3 Fed. R. Civ. Pro. 12(b)(2). Defendants assert that Nations is an Ohio corporation “with no alleged conduct directed at Illinois.” Further, defendants assert that all the alleged activities in plaintiff's claims against Nations took place in Wisconsin, “with only incidental impact in Illinois insufficient to

2 Plaintiff brings its claims against Nations before the court under its original jurisdiction pursuant to 28 U.S.C. § 1332(a)(1) because it is a civil action between parties of diverse citizenship with an appropriate amount in controversy. 3 Defendants do not dispute the court’s personal jurisdiction over Rorvig, likely because Rorvig consented to exclusive jurisdiction of and venue in “the federal court located in Cook County, Illinois for the purposes of actions arising out of his employment with GRI and/or [his employment agreement with GRI].” give rise to personal jurisdiction.” They claim that “[t]here are no allegations that Nations knew that its alleged conduct against GRI would be felt in Illinois or that it was otherwise expressly aimed at Illinois.” In the instant motion, plaintiff argues that Nations’ contact with Illinois is “more extensive” than defendants admit.4 For example, Rorvig was on a Midwest-based team with an

Illinois-based regional manager, Timothy Dowling (“Dowling”). Dowling ran plaintiff’s Midwest Division from Schaumburg, Illinois, and McHenry County, Illinois. Plaintiff alleges that Rorvig and Dowling worked with encouragement from Nations to recruit employees from plaintiff’s Midwest Division, which is based in Illinois and/or Wisconsin. Rorvig reported to Dowling until Dowling resigned from his position with plaintiff on May 14, 2021. After his resignation, Dowling began employment with Nations and allegedly worked with Rorvig to solicit employees from plaintiff, including “at least three GRI employees located in Illinois.” To further illuminate Nations’ contacts with Illinois, plaintiff seeks jurisdictional discovery. Plaintiff requests, among other things, Nations’ production of documents relating to

“[c]ommunications with any current or former GRI employee located in Illinois, from January 1, 2022 to the present regarding employment, potential employment, or an affiliation with Nations.” Plaintiff also requests “[d]ocuments reflecting the amount of revenue earned on loans originating in Illinois from 2021 to the present,” and “[a]ll advertisements, marketing materials, and/or sales materials sent to any persons in the state of Illinois, or any advertisement, marketing material, and/or sales materials that was sent to or published in Illinois from January 2021 to the present.” Plaintiff requests similar production from Rorvig, in addition to interrogatory responses from both defendants regarding similar information.

4 In total, plaintiff’s Midwest Division covers Illinois, Wisconsin, Michigan, Minnesota, Ohio, Kentucky, Missouri, Indiana, West Pennsylvania, North Dakota, South Dakota, Kansas, and Nebraska. Further, plaintiff seeks to depose both defendants. Plaintiff generally seeks to question Rorvig “regarding jurisdictional discovery,” but its questions for Nations are more specific. Plaintiff seeks to depose Nations regarding its “revenues received from each state in which Nations originates loans, including: the volume of loan origination for each state as it relates to

total revenues”; its customers or clients in Illinois, as well as its services or products offered there; its reporting structure, especially as it relates to Rorvig and Dowling; its recruitment of certain individuals; and its marketing and advertising in Illinois, among other inquiries. LEGAL STANDARD

When a defendant moves for dismissal under Rule 12(b)(2), the plaintiff bears the burden of establishing personal jurisdiction. See Citadel Grp., Ltd. v. Wash. Reg’l Med. Ctr., 536 F.3d 757, 761 (7th Cir. 2008). When the motion is based on written materials submitted by the parties, rather than an evidentiary hearing, the plaintiff need only make a prima facie showing of jurisdictional facts. See Purdue Research Found. v. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003). Thus, the court accepts as true all well-pleaded facts in the complaint and resolves any factual disputes presented in the record in favor of the plaintiff. Id.

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Bluebook (online)
Guaranteed Rate, Inc. v. Rorvig, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guaranteed-rate-inc-v-rorvig-ilnd-2022.