RxWound, LLC v. Extremity Care, LLC

CourtDistrict Court, N.D. Illinois
DecidedDecember 9, 2025
Docket1:25-cv-14925
StatusUnknown

This text of RxWound, LLC v. Extremity Care, LLC (RxWound, LLC v. Extremity Care, LLC) 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
RxWound, LLC v. Extremity Care, LLC, (N.D. Ill. 2025).

Opinion

UNITED STATES DISTRICT COURT MIDDLE DISTRICT OF FLORIDA JACKSONVILLE DIVISION

RXWOUND, LLC,

Plaintiff,

vs. Case No. 3:25-cv-260-MMH-SJH

EXTREMITY CARE, LLC,

Defendant. /

ORDER THIS CAUSE is before the Court on Defendant Extremity Care, LLC’s Motion to Dismiss, or, in the Alternative, to Transfer Venue or Stay, and Incorporated Memorandum of Law (Doc. 28; Motion), filed on May 5, 2025. Plaintiff RxWound, LLC, (RxWound) filed its Opposition to Defendant’s Motion to Dismiss (Doc. 36; Response) on May 27, 2025. And, on June 17, 2025, Defendant Extremity Care, LLC, (Extremity Care) filed its Reply in Support of its Motion to Dismiss, or Alternatively Transfer, or Stay Plaintiff’s Complaint (Doc. 45; Reply). Accordingly, this matter is ripe for review. I. Background1 On March 28, 2024, RxWound, which sells and distributes wound care

products, entered into a contract with Extremity Care, a wound care and medical products developer. See generally Sales Representative Agreement (Doc. 28-1 at 14–28; Sales Contract), filed on May 5, 2025. Under the Sales Contract, RxWound agreed to promote Extremity Care’s products in exchange

for service fees. See id. §§ 1.1, 4.7. And, to ensure RxWound’s compliance with applicable health care laws, the Sales Contract authorized Extremity Care to inspect RxWound’s facilities and operations. See id. at Exh. D § 10. On September 5, 2024, Extremity Care notified RxWound that, during

one of its audits, it learned RxWound was “engaging in conduct that ‘reasonably would be expected to result in’” a penalty or sanction under a Healthcare Law. See Termination of Sales Representative Agreement (Doc. 28-1 at 30;

1 In considering the Motion, the Court must accept all factual allegations in the Complaint as true, consider the allegations in the light most favorable to RxWound, and accept all reasonable inferences that can be drawn from such allegations. See Hill v. White, 321 F.3d 1334, 1335 (11th Cir. 2003); Jackson v. Okaloosa County, 21 F.3d 1531, 1534 (11th Cir. 1994). To the extent the Court describes and considers matters outside the pleadings, the Court draws all reasonable inferences and resolves all factual conflicts in favor of RxWound. See Elite Advantage, LLC v. Trivest Fund, IV, L.P., No. 15-22146-CIV, 2015 WL 4982997 at *3 n.1 (S.D. Fla. Aug. 21, 2015) (“On a motion to transfer venue, the Court is permitted to consider materials outside the pleadings.”). As such, the facts recited may well differ from those that can ultimately be proved. In citing to Elite Advantage, the Court notes that although decisions of other district courts are not binding, they may be cited as persuasive authority. See Stone v. First Union Corp., 371 F.3d 1305, 1310 (11th Cir. 2004) (noting that, “[a]lthough a district court would not be bound to follow any other district court’s determination, the decision would have significant persuasive effects.”). Termination Notice), filed on May 5, 2025. For this reason, Extremity Care notified RxWound of its termination of the Sales Contract for cause. See id.

Based on the termination, Extremity Care refused to pay RxWound approximately $2,351,075.88 in service fees, which Extremity Care withheld during the audit. See Exhibit 1: Complaint (Doc. 28-1 at 2–12; Illinois Complaint), filed on May 5, 2025, ¶¶ 37–38. Extremity Care also refused to pay

another $2,109,038.59 in service fees that became due after it sent the Termination Notice. See id. ¶¶ 39–40. RxWound disputed Extremity Care’s grounds for termination and asserted that the service fees were wrongfully withheld. See Confidential

Settlement Agreement and Release (Doc. 8; Settlement Agreement), filed on March 17, 2025, at Recital C.2 Ultimately, on February 10, 2025, the parties entered into the Settlement Agreement to resolve the dispute. See Settlement Agreement at Recitals A–D; Complaint (Doc. 1; Florida Complaint), filed on

March 7, 2025, ¶ 14. There, Extremity Care agreed to pay RxWound a confidential sum of money in exchange for RxWound’s release of all claims arising from or relating to the Sales Contract. See Settlement Agreement § 1.3; Florida Complaint ¶¶ 16, 28. Extremity Care was to make this payment by

February 28, 2025. See Settlement Agreement § 1.2; Florida Complaint ¶ 17.

2 The Recitals set forth in the Settlement Agreement were incorporated into and made a material part of the Settlement Agreement. See Settlement Agreement § 1.1. But it never did. See Florida Complaint ¶¶ 18, 19. Instead, Extremity Care attempted to renegotiate the terms of the Settlement Agreement. See id. ¶ 20.

Rather than entertain Extremity Care’s renegotiation attempts, RxWound initiated two separate lawsuits against Extremity Care. On March 7, 2025, RxWound initiated this action (the Florida Action), asserting claims arising out of Extremity Care’s breach of the Settlement Agreement. See

generally Florida Complaint. A few weeks later, on March 26, 2025, RxWound initiated another action against Extremity Care in the United States District Court for the Northern District of Illinois (the Illinois Court). See RxWound, LLC v. Extremity Care, LLC, No. 1:25-cv-03254 (N.D. Ill.) (the Illinois Action).

There, RxWound asserts claims arising from Extremity Care’s breach of the Sales Contract. See generally Illinois Complaint. At present, in the Illinois Action, the parties have filed answers and counterclaims. See Illinois Action, Extremity Care, LLC’s Answer, Affirmative

Defenses, and Counterclaim (Doc. 19), filed on May 5, 2025; Illinois Action, Plaintiff RxWound, LLC’s Answer to Defendant Extremity Care, LLC’s Counterclaims (Doc. 36), filed on August 21, 2025. And the Illinois Court is tracking the status of this Motion. See Illinois Action, Notification of Docket

Entry (Doc. 41), entered on November 25, 2025, (ordering the parties to file a status report on the Florida litigation and setting the Illinois Action for a tracking status hearing). In the Motion before this Court, Extremity Care argues, amongst other things, that the Florida action should be transferred to Illinois pursuant to the

forum selection clause in the Sales Contract or under the doctrine of forum non conveniens. See Motion at 9–16. In response, RxWound contends that the forum selection clause does not govern the dispute arising under the Settlement Agreement and that Extremity Care has failed to meet its burden of showing

that convenience favors Illinois as the forum for this litigation. See Response at 12–14. Upon review, the Court finds that this action is due to be transferred pursuant to 28 U.S.C. § 1404(a).

II. Applicable Law When parties have instituted competing or parallel litigation in separate courts, courts apply the “first-filed rule” which provides that “the court initially seized of the controversy should hear the case.” Collegiate Licensing Co. v. Am.

Cas. Co. of Reading, Pa., 713 F.3d 71, 78 (11th Cir. 2013) (citing Merrill Lynch, Pierce, Fenner & Smith, Inc. v. Haydu, 675 F.2d 1169, 1174 (11th Cir. 1982)). Indeed, “[w]here two actions involving overlapping issues and parties are pending in two federal courts, there is a strong presumption across the federal

circuits that favors the forum of the first-filed suit under the first-filed rule.” Id. (quoting Manuel v.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Stateline Power Corp. v. Richard Kremer
148 F. App'x 770 (Eleventh Circuit, 2005)
Emerald Grande, Inc. v. Clatus Junkin
334 F. App'x 973 (Eleventh Circuit, 2009)
Robinson v. Giarmarco & Bill, P.C.
74 F.3d 253 (Eleventh Circuit, 1996)
Snapper, Inc. v. Redan
171 F.3d 1249 (Eleventh Circuit, 1999)
Arlene M. Stone v. First Union Corporation
371 F.3d 1305 (Eleventh Circuit, 2004)
Global Satellite Communication Co. v. Starmill U.K. Ltd.
378 F.3d 1269 (Eleventh Circuit, 2004)
William S. Manuel v. Convergys Corporation
430 F.3d 1132 (Eleventh Circuit, 2005)
Continental Grain Co. v. Barge FBL-585
364 U.S. 19 (Supreme Court, 1960)
Stewart Organization, Inc. v. Ricoh Corp.
487 U.S. 22 (Supreme Court, 1988)
Rucker v. Oasis Legal Finance, L.L.C
632 F.3d 1231 (Eleventh Circuit, 2011)
Slater v. Energy Services Group International, Inc.
634 F.3d 1326 (Eleventh Circuit, 2011)
In Re Ricoh Corporation
870 F.2d 570 (Eleventh Circuit, 1989)
Cornett v. Carrithers Ex Rel. Estate of Carrithers
465 F. App'x 841 (Eleventh Circuit, 2012)
Lonnie J. Hill v. Thomas E. White, Secretary of the Army
321 F.3d 1334 (Eleventh Circuit, 2003)
Digital Envoy, Inc. v. Google, Inc.
319 F. Supp. 2d 1377 (N.D. Georgia, 2004)
Eye Care International, Inc. v. Underhill
119 F. Supp. 2d 1313 (M.D. Florida, 2000)
Mason v. Smithkline Beecham Clinical Laboratories
146 F. Supp. 2d 1355 (S.D. Florida, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
RxWound, LLC v. Extremity Care, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rxwound-llc-v-extremity-care-llc-ilnd-2025.