Pomerantz v. Intern. Hotel Company, LLC

359 F. Supp. 3d 570
CourtDistrict Court, E.D. Illinois
DecidedFebruary 6, 2019
DocketNo. 18 C 5470
StatusPublished
Cited by8 cases

This text of 359 F. Supp. 3d 570 (Pomerantz v. Intern. Hotel Company, LLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pomerantz v. Intern. Hotel Company, LLC, 359 F. Supp. 3d 570 (illinoised 2019).

Opinion

SIDNEY I. SCHENKIER, United States Magistrate Judge

On March 27, 2018, plaintiff Michael Pomerantz filed suit in state court against defendants Hard Rock Café Franchise Group, LLC ("Hard Rock Franchise") and Hard Rock Café International (USA), Inc. ("Hard Rock International") (collectively, "Hard Rock defendants") and International Hotel Company, LLC, d/b/a Palace Premier and Palace Elite ("IHC"), alleging breach of contract, common law fraud, consumer fraud and civil conspiracy (doc. # 1: Not. of Removal, Ex. 1). On August 10, 2018, defendant IHC removed the case to federal court based on diversity jurisdiction (Id. ), and on September 4, 2018, plaintiff filed an amended complaint ("Complaint") in federal court (doc. # 17: Compl.). On September 25, 2018, the Hard Rock defendants and IHC filed separate motions to dismiss. IHC has moved for dismissal under Federal Rules of Civil Procedure 12(b)(1), (3) and (6) (doc. # 25), and the Hard Rock defendants have moved to dismiss under Federal Rules of Civil Procedure 9(b), 12(b)(2) and 12(b)(6) (doc. # 23). Both motions are now fully briefed. For the reasons set forth below, the Court grants IHC's motion to dismiss based on forum non conveniens and grants the Hard Rock defendants' motion to dismiss for failure to state a claim upon which relief can be granted.

I.

We first set out the well-pleaded factual allegations in the Complaint. We accept these allegations as true for purposes of defendants' motions to dismiss under Rules 12(b)(1) (lack of subject-matter jurisdiction), 12(b)(2) (lack of personal jurisdiction), 12(b)(3) (improper venue), 12(b)(6) (failure to state a claim), and 9(b) (failure to plead fraud with particularity). See, e.g., Bultasa Buddhist Temple of Chicago v. Nielsen , 878 F.3d 570, 573 (7th Cir. 2017) ( Rule 12(b)(1) ); Felland v. Clifton , 682 F.3d 665, 676 (7th Cir. 2012) ( Rule 12(b)(2) ); Faulkenberg v. CB Tax Franchise Sys., LP , 637 F.3d 801, 806 (7th Cir. 2011) ( Rule 12(b)(3) ); Tucker v. City of Chicago , 907 F.3d 487, 491 (7th Cir. 2018) ( Rule 12(b)(6) ); Webb v. Frawley , 906 F.3d 569, 576 (7th Cir. 2018) ( Rule 9(b) ). Documents attached to the complaint and motions to dismiss "are considered part of the pleadings if they are referred to in the plaintiff's complaint and are central to his claim." Mueller v. Apple Leisure Corp. , 880 F.3d 890, 895 (7th Cir. 2018) (internal citations and quotations omitted). In addition, when considering motions to dismiss based on improper venue or forum non *576conveniens , the Court considers whether defendant's affidavits contradict the allegations in the plaintiffs' complaint as to the appropriate venue or forum. See Deb v. SIRVA, Inc. , 832 F.3d 800, 809-10 (7th Cir. 2016).

A.

Mr. Pomerantz is a resident of Illinois (Compl., ¶ 2). He alleges, "based on information and belief," that IHC "does business as Palace Premier and Palace Elite" (Id. , ¶ 6). Further, plaintiff alleges that IHC and the Hard Rock defendants are Florida companies that do business in Illinois (Id. , ¶¶ 3-5). The Hard Rock defendants submitted an affidavit from one of their directors stating that Hard Rock Franchise is not registered or licensed to do business in Illinois (Hard Rock Defs.' Mot. to Dismiss, Ex. 1: Affidavit of Brian Alexander, ¶ 5). Plaintiff asserts venue is proper in this Court "because a substantial part of the events or omissions giving rise to the claim occurred in this district" (Compl., ¶ 8).

B.

On March 6, 2009, plaintiff signed a "Membership Agreement" with Palace Premier, S.A. de C.V. ("Palace Premier") (Compl., Ex. A: "Agreement"). Mr. Pomerantz paid a "Membership Fee" to Palace Premier in return for a 25-year membership entitling him to stay at fourteen Mexican resorts, which plaintiff collectively refers to as the "Original Palace Resorts" (Compl., ¶ 10; Agreement, Pomerantz ¶¶ 1-2, 6). Mr. Pomerantz paid "VIP preferential rates" to obtain additional resort benefits as a "VIP Founding Member" (Id. , ¶ 11; Agreement, attachments). The Agreement contains a clause stating: "Jurisdiction -- The parties agree to submit to the jurisdiction of the courts and tribunals of the City of Cancun, Quintana Roo in the event of any controversy over the interpretation or execution of this Agreement, ... thereby renouncing any other jurisdiction that may correspond to them by reason of present or future domicile" (Agreement, ¶ 10). The Agreement also contains a clause stating: "Applicable Law -- This agreement and the documents it comprises as well as the parties thereto will be subject to the Federal Consumer Protection Act and to the Official Mexican Standard (NOM-029-SCFI-1998) published in the Federal Gazette on January 29, 1999" (Id. , ¶ 9). Mr. Pomerantz and a representative of Palace Premier signed each page of the Agreement and the documents attached to the Agreement.

C.

Plaintiff alleges that, "upon information and belief, in or around 2012, IHC entered into an agreement whereby a number of the Original Palace resorts would be "rebranded" as 'Hard Rock Hotels,' and managed in conjunction with" the Hard Rock defendants (Compl., ¶ 12). Plaintiff alleges that the hotels that were re-branded as Hard Rock hotels have "failed to honor many of the membership rights of VIP founding members and Premier Level members," including plaintiff (Id. , ¶¶ 13-16). In addition, plaintiff alleges the rebranded hotels have increased their "preferential rates" more than the maximum amount listed in the Agreement, and plaintiff "was informed that there would be additional charges for numerous benefits and services that Plaintiff had already paid for as a VIP founding member and Premier Level member" (Id. , ¶¶ 17-18). The Hard Rock defendants assert that neither of them is a franchisor or licensor of IHC (Alexander Aff., ¶ 6).

Plaintiff contends that the Membership Agreement constitutes a valid and enforceable contract between him and IHC, and *577

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359 F. Supp. 3d 570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pomerantz-v-intern-hotel-company-llc-illinoised-2019.