Murphy v. Illinois Orthopedic Network, PLLC

Appellate Court of Illinois·Decided August 31, 2026·No. 1-25-2283·Published

Opinion

2026 IL App (1st) 252283

SECOND DIVISION

August 31, 2026

No. 1-25-2283

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

STEPHEN MURPHY, ) Appeal from ) the Circuit Court Plaintiff-Appellant, ) of Cook County )

v. ) 23L4666 )

ILLINOIS ORTHOPEDIC NETWORK, PLLC, ) Honorable LILIANA O’SHEA, and TERRIS MURPHY, ) John J. Tully, Jr., ) Judge Presiding Defendants-Appellees. )

JUSTICE McBRIDE delivered the judgment of the court.

Justices Ellis and D.B. Walker concurred in the judgment.

ORDER

¶1 Held: Attorney’s absolute litigation privilege to make statements about potential lawsuit barred defamation claim; summary judgment affirmed.

¶2 Data consultant Stephen Murphy sued his former client’s general counsel, Liliana O’Shea, contending that she defamed him with an e-mail warning that it was criminal to continue accessing the former client’s confidential database and would provoke the company to pursue injunctive relief. The company, Illinois Orthopedic Network, PLLC (ION), is a Chicago-based medical care network that specializes in anesthesiology, pain management, hand surgery, otolaryngology, and plastic surgery. O’Shea addressed her e-mail directly to Murphy and ION’s owners, Marc Strongin

and Irvin M. Wiesman. The trial judge entered summary judgment against Murphy, on the basis of the absolute litigation privilege that protects attorneys from civil liability for statements which they make in the course of representation. In the circuit court, Murphy had legal counsel. Here, he appeals pro se.

¶3 Murphy was a data consultant for ION while his then-wife, Terris Murphy, was the company’s chief executive officer. In March 2022, ION verbally ended its association with Murphy and disabled his access to ION’s servers. In July 2022, Terris Murphy filed for dissolution of marriage. It is undisputed that after Murphy’s logon credentials were deactivated, he used someone else’s credentials to access ION’s servers. In addition, he did not relinquish the passwords that ION needed to access its Power BI platform and Microsoft Azure server. ION personnel exchanged phone calls, texts and e-mails with Murphy about the circumstances. Three of the e-mails that O’Shea and Murphy exchanged are pertinent to this appeal.

¶4 O’Shea sent an e-mail response to Murphy on Monday, August 22, 2022, at 10:32 a.m. which she marked “Importance: High.” The subject line indicated that she was continuing a conversation about a text message. The text message was not included in the record on appeal. However, in an affidavit filed during these proceedings, O’Shea stated that Murphy “became extremely aggressive after being told [he] would no longer receive any work from ION,” “kept pushing back on ION’s decision,” and “refus[ed] to tell ION how he accessed [its] data unless he was compensated for the information.” When deposed in connection with this litigation, Strongin (one of ION’s two owners) testified that after “[w]e had a discussion about Stephen inappropriately accessing our data, *** we agreed that this e-mail was the next logical step.” O’Shea wrote:

“Stephen,

Your authorization has been terminated, as you have been notified multiple times. I have reviewed the correspondence you have sent and it is clear that it is blackmail. Per Drs.

Strongin and Wiesman, I will be filing a police report today and moving for a preliminary injunction.

Sincerely, Liliana O’Shea General Counsel Illinois Orthopedic Network, PLLC.”

¶5 Later that same day, at 12:35 p.m., Murphy answered O’Shea, but Murphy added ION’s two owners to the e-mail’s distribution list:

“General Counsel, Marc, Irv:

I don’t know what you’re accusing me of doing; what am I blackmailing for and trying to extort? What is the injunction for?

I consider this escalation on your end [to be] extremely ill intentioned. It feels intentionally provoking and has caused me extreme distress (you all know my personal situation).

I’ve been trying to clarify the contract we had between us, the signing authorities, etc[.], so that I may comply with your request (I’m currently deleting all [patient Protected Health Information] data from the secure server per your request and our BAA agreement). Since Friday at 4:47pm when I was first given written notice to comply by 8pm on Monday, I have not received clear answers to my fair questions.

Sincerely,

Stephen.”

¶6 According to O’Shea’s affidavit, she used the “reply all” option when composing the response that she sent to Murphy at 1:53 p.m., which meant that the recipients included both of ION’s owners.

“Stephen, You were notified verbally months ago of your termination. You have failed to comply and have (1) threatened to engage in a data breach, and (2) stated that ‘it will cost [ION]’

[to learn] *** how you gained access to the server (after you knew your access had been terminated). Your behavior constitutes theft pursuant to 720 ILCS 5/16-1, constituting a felony, and punishable by a minimum of six years in jail and a maximum of thirty years in prison, if convicted, along with a $25,000 fine.

I have a signed affidavit from [ION’s chief financial officer] relating the facts of what has transpired in the last few days[,] including your threats, that I intend[] to attach to the TRO that [will] be filed tomorrow morning, unless you comply with the following by 5pm CST today.”

¶7 In the next paragraph of her e-mail, O’Shea listed certain demands, including that Murphy sign documents, turn over ION’s passwords for its Power BI and Microsoft Azure accounts, and disclose how he had connected to ION’s server even though his credentials had been disabled five months earlier. O’Shea’s e-mail concluded:

“I look forward to hearing from you and hope this issue can be resolved amicably.

Sincerely, Liliana O’Shea

General Counsel Illinois Orthopedic Network, PLLC.”

¶8 Murphy complied with all of ION’s demands. The next day, August 23, 2022, at 9:18 a.m., O’Shea sent Murphy a short follow-up e-mail stating, “Since you provided all the information requested, we will not be filing any charges.”

¶9 This concluded ION’s disagreement with Murphy.

¶ 10 Nine months later, however, Murphy began this action. He still did not deny engaging in the objectionable access and retention of ION’s data resources. Nevertheless, he directed Count I at O’Shea and the ION corporation, contending that it was false and defamatory for the general counsel to characterize his conduct as felony theft. Count II was a contractual interference claim directed at Terris Murphy, whom he alleged instigated the end of his relationship with ION, in order to “gain leverage” in their “contentious divorce.” Murphy did not describe or attach a contract. The circuit court granted the defendants’ section 2-615 motion to dismiss the complaint as conclusory (see 735 ILCS 5/2-615 (West 2022)) because Murphy did not factually indicate that a false statement had been published to a third party and did not factually identify a contract.

¶ 11 In an amended pleading, Murphy restated his allegations and added a list of tasks that he performed for ION as a data consultant at the rate of $80 per hour between 2018 and 2022.

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