Inst. for the Int'l Educ. of Students v. Qian Chen

380 F. Supp. 3d 801
CourtDistrict Court, S.D. Indiana
DecidedMay 2, 2019
DocketNo. 1:18-cv-02229-JRS-TAB
StatusPublished
Cited by4 cases

This text of 380 F. Supp. 3d 801 (Inst. for the Int'l Educ. of Students v. Qian Chen) is published on Counsel Stack Legal Research, covering District Court, S.D. Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inst. for the Int'l Educ. of Students v. Qian Chen, 380 F. Supp. 3d 801 (S.D. Ind. 2019).

Opinion

The following month, Chen formed Defendant International Education Foundation, Inc. ("IEF"), which competes directly with Plaintiff. (Id. ¶ 5.) In September 2017, Chen, together with Shen, returned to SAF-IUNS's offices. (Id. ¶ 18.) There they met with SAF-IUNS employees, attempted to recruit the employees to Chen's and Shen's new companies, falsely told the employees that Plaintiffs would terminate all employees upon acquiring SAF-IUNS, and dissuaded the employees from meeting with Plaintiff's representatives to discuss the acquisition. (Id. ¶ 19.)

Chen, Shen, and IEF induced certain SAF-IUNS employees to solicit SAF's and SAF-IUNS's university partners and member schools on behalf of IEF. (Id. ¶ 20.) As part of this effort, Chen and IEF induced SAF-IUNS employees to use confidential information, to create an IEF website using SAF-IUNS resources, and to create and use deceptive email addresses. (Id. ¶¶ 46, 48.)

II. Failure to State a Claim

Rule 12(b)(6)

A. Legal Standard

To survive a motion to dismiss for failure to state a claim, a plaintiff must allege "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly , 550 U.S. 544, 570, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). In considering a Rule 12(b)(6) motion to dismiss, the court takes the complaint's factual allegations as true and draws all reasonable inferences in the plaintiff's favor. Orgone Capital III, LLC v. Daubenspeck , 912 F.3d 1039, 1044 (7th Cir. 2019). The court need not "accept as true a legal conclusion couched as a factual allegation."

*807Papasan v. Allain , 478 U.S. 265, 286, 106 S.Ct. 2932, 92 L.Ed.2d 209 (1986). "[I]f a plaintiff pleads facts that show its suit [is] barred ..., it may plead itself out of court under a Rule 12(b)(6) analysis." Orgone Capital , 912 F.3d at 1044 (quoting Whirlpool Fin. Corp. v. GN Holdings, Inc. , 67 F.3d 605, 608 (7th Cir. 1995) ); Bogie v. Rosenberg , 705 F.3d 603, 609 (7th Cir. 2013) (on a motion to dismiss "district courts are free to consider 'any facts set forth in the complaint that undermine the plaintiff's claim' ") (quoting Hamilton v. O'Leary, 976 F.2d 341, 343 (7th Cir. 1992) ).

B. Counts II and III - Tortious Interference

Plaintiff alleges claims against IEF for tortious interference with a contract and for tortious interference with a business relationship.2 Under Indiana law,

The elements of an action for tortious interference with a contract are (1) existence of a valid and enforceable contract; (2) defendant's knowledge of the existence of the contract; (3) defendant's intentional inducement of breach of the contract; (4) the absence of justification; and (5) damages resulting from defendant's wrongful inducement of the breach.
In addition, it has been recognized that an action may lie under Indiana law for tortious interference with a business relationship even though there was no valid contract. In such cases, however, it appears to be critical that the defendant acted illegally in achieving his end.

Syndicate Sales, Inc. v. Hampshire Paper Corp. , 192 F.3d 633, 641 (7th Cir. 1999) (quoting Biggs v. Marsh , 446 N.E.2d 977, 983 (Ind. Ct. App. 1983) ).

1. Absence of justification

IEF contends that Plaintiff does not adequately allege absence of justification. The Complaint contains conclusory allegations: "Defendants' conduct was without justification" (Compl. ¶ 33) and "Defendants' conduct was without justification and unlawful" (id. ¶ 40). But it also contains substantive allegations tending to show the absence of justification, which allegations IEF's argument wholly ignores.

To determine whether interference with a contract is justified, Indiana courts consider the following factors:

(a) the nature of the defendant's conduct;
(b) the defendant's motive;
(c) the interests of the plaintiff with which the defendant's conduct interferes;
(d) the interests sought to be advanced by the defendant;
(e) the social interests in protecting the freedom of action of the defendant and the contractual interests of the plaintiff;
*808(f) the proximity or remoteness of the defendant's conduct to the interference; and
(g) the relations between the parties.

Winkler v. V.G. Reed & Sons, Inc. , 638 N.E.2d 1228 (Ind. 1994) (quoting Restatement (Second) of Torts § 767 (1977) ). At this stage, Plaintiff has pleaded enough facts to support its contention that IEF acted without justification.

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Bluebook (online)
380 F. Supp. 3d 801, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inst-for-the-intl-educ-of-students-v-qian-chen-insd-2019.