SABA Software, Inc. v. Deere & Co.

2014 IL App (1st) 132381, 29 N.E.3d 85, 390 Ill. Dec. 456, 2014 Ill. App. LEXIS 722
CourtAppellate Court of Illinois
DecidedSeptember 30, 2014
Docket1-13-2381
StatusPublished
Cited by7 cases

This text of 2014 IL App (1st) 132381 (SABA Software, Inc. v. Deere & Co.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SABA Software, Inc. v. Deere & Co., 2014 IL App (1st) 132381, 29 N.E.3d 85, 390 Ill. Dec. 456, 2014 Ill. App. LEXIS 722 (Ill. Ct. App. 2014).

Opinion

Illinois Official Reports

Appellate Court

Saba Software, Inc. v. Deere & Co., 2014 IL App (1st) 132381

Appellate Court SABA SOFTWARE, INC., Plaintiff-Appellee, v. DEERE AND Caption COMPANY, Defendant-Appellant.

District & No. First District, Fifth Division Docket No. 1-13-2381

Filed September 30, 2014 Rehearing denied March 27, 2015

Held In an action arising from a dispute over an agreement under which (Note: This syllabus plaintiff was to provide software subscription services to defendant, constitutes no part of the defendant’s motion to transfer the action plaintiff filed in Cook opinion of the court but County, Illinois, to Rock Island County was properly denied by the has been prepared by the trial court, since the venue waiver provision in the parties’ agreement Reporter of Decisions provided the parties waived the Illinois venue statute and the doctrine for the convenience of of forum non conveniens, and the parties consented to venue in “any the reader.) federal or state court of competent jurisdiction located in Illinois for the purposes of adjudicating any matter arising out of or relating to” the agreement; therefore, Cook County was a proper place for plaintiff to file its action.

Decision Under Appeal from the Circuit Court of Cook County, No. 13-L-002088; the Review Hon. Joan E. Powell, Judge, presiding.

Judgment Affirmed. Counsel on Patricia Brown Holmes, Neil Lloyd, and Rachel Remke, all of Schiff Appeal Hardin LLP, of Chicago, for appellant.

Leonard A. Gail and Bruce W. Doughty, both of Massey & Gail LLP, of Chicago, for appellee.

Panel JUSTICE GORDON delivered the judgment of the court, with opinion. Justices McBride and Taylor concurred in the judgment and opinion.

OPINION

¶1 On February 26, 2012, plaintiff Saba Software, Inc. (Saba), a Delaware corporation, filed suit in the circuit court of Cook County against defendant Deere & Company (Deere), another Delaware corporation, for money damages claiming: (1) breach of contract; and (2) restitution based on unjust enrichment. On April 22, 2013, Deere filed a motion to transfer the case to Rock Island County based on the Illinois venue statute, section 2-104 of the Code of Civil Procedure (735 ILCS 5/2-104 (West 2012)) and the doctrine of forum non conveniens (Ill. S. Ct. R. 187 (eff. Jan. 4, 2013) (describing the process for forum non conveniens motions)). After a hearing, the trial court denied the motion. ¶2 On July 26, 2013, Deere filed an interlocutory appeal pursuant to Illinois Supreme Court Rule 306 (eff. Feb. 16, 2011), which permits interlocutory appeals from certain court orders. Rule 306(a)(2) permits an appeal from an order allowing or denying a forum non conveniens motion, and Rule 306(a)(4) permits an appeal from an order granting or denying a motion for a transfer of venue based on the assertion that the defendant is not a resident of the county in which the action was commenced, and no other legitimate basis for venue in that county has been offered by the plaintiff. Ill. S. Ct. R. 306(a)(2), (a)(4) (eff. Feb. 16, 2011). ¶3 On August 28, 2013, the appellate court dismissed the appeal. Saba Software, Inc. v. Deere & Co., No. 1-13-2381 (Aug. 28, 2013). Deere then filed a petition for leave to appeal, which the Illinois Supreme Court denied, but, pursuant to its supervisory authority, it ordered this court to vacate its prior dismissal order and to hear the appeal. Saba Software, Inc. v. Deere & Co., No. 116651 (Ill. Nov. 27, 2013). ¶4 In this interlocutory appeal, Deere argues that the trial court erred in denying its motion to transfer the case to Rock Island County. Deere contests the denial on two grounds: (1) that the trial court erred in failing to apply the Illinois venue statute; and (2) that the trial court erred in failing to properly apply the doctrine of forum non conveniens. ¶5 For the reasons discussed below, we affirm.

¶6 BACKGROUND ¶7 On February 26, 2013, Saba filed the present suit against Deere in the circuit court of Cook County. The action seeks money damages for: (1) breach of contract; and (2)

-2- restitution for unjust enrichment. Both claims arose out of a dispute over a subscription agreement, which the parties entered into on February 23, 2011. ¶8 To establish venue, Saba alleges in its complaint: “Venue is proper in this Court because the transaction out of which the cause of action arose occurred in part in Cook County, Deere is authorized to do business in Cook County, and the parties explicitly consented to venue in any state court in Illinois, of competent jurisdiction–like this Court–to adjudicate issues arising out of or relating to the Parties’ governing agreement. See 735 ILCS [5/2-101, 2-102 (West 2010)]; Subscription Agreement (as defined infra), ¶ 10.7 [sic].”

¶9 I. The Parties ¶ 10 Saba describes the parties in its complaint as follows: Saba is a Delaware corporation with its principal place of business in Redwood Shores, California, and it provides software subscription services to its customers, including learning management systems. ¶ 11 Deere is a Delaware corporation with its principal place of business in Moline, Illinois, and it is engaged in the business of agriculture and turf equipment, construction and forestry equipment, and related financial services. ¶ 12 On February 23, 2011, the parties executed three documents: (1) the software subscription services agreement (the subscription agreement); (2) the statement of work; and (3) the product schedule. The subscription agreement is the governing written contract under which Saba agreed to supply Deere certain software services, including a learning management system. The statement of work provided that Deere would pay Saba $791,175 for these services under a fixed-fee arrangement. ¶ 13 The subscription agreement includes provision 10.8, entitled “Venue,” which states: “The parties consent to the exclusive jurisdiction of, and venue in, any federal or state court of competent jurisdiction located in Illinois for the purposes of adjudicating any matter arising out of or relating to this Agreement.” ¶ 14 Saba’s complaint states that the initial “go live” date for this project was in November 2011. The parties later reworked their plan to establish a new “go live” date of February 20, 2012. This dispute arose after the project was not completed by this date, and negotiations began to break down. Pursuant to section 9.1 of the subscription agreement, the parties met on August 2, 2012, at Deere’s headquarters in Moline, Illinois, to discuss the dispute. When the meeting proved unsuccessful to resolve the dispute, the parties entered into mediation, pursuant to section 9.2 of the subscription agreement, which was held on November 5 and 6, 2012, in Chicago, Illinois. The mediation was not successful.

¶ 15 II. Deere’s Initial Lawsuit ¶ 16 On November 6, 2012, following mediation, Deere filed a federal complaint against Saba in the United States District Court for Central Illinois based on diversity of citizenship. Deere & Co. v. Saba Software, Inc., No. 4:12-cv-04105-SLD-JAG, 2012 WL 6763323 (C.D. Ill. 2012). To establish venue there, Deere alleged three bases in its amended complaint, including the venue clause of the subscription agreement: “Venue lies in the District pursuant to 28 U.S.C. Sections 1391 and 1404 in that *** the parties agreed in writing that Illinois is the appropriate venue for any litigation between the parties.”

-3- ¶ 17 On February 26, 2013, Saba filed a motion to dismiss under Rule 12(b) of the Federal Rules of Civil Procedure

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SABA Software, Inc. v. Deere and Company
2014 IL App (1st) 132381 (Appellate Court of Illinois, 2014)
SABA Software, Inc. v. Deere & Company
2014 IL App (1st) 132381 (Appellate Court of Illinois, 2014)

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2014 IL App (1st) 132381, 29 N.E.3d 85, 390 Ill. Dec. 456, 2014 Ill. App. LEXIS 722, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saba-software-inc-v-deere-co-illappct-2014.