SABA Software, Inc. v. Deere & Company

2014 IL App (1st) 132381
CourtAppellate Court of Illinois
DecidedSeptember 30, 2014
Docket1-13-2381
StatusUnpublished

This text of 2014 IL App (1st) 132381 (SABA Software, Inc. v. Deere & Company) 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 & Company, 2014 IL App (1st) 132381 (Ill. Ct. App. 2014).

Opinion

2014 IL App (1st) 132381 No. 1-13-2381

Fifth Division September 30, 2014 ______________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

FIRST DISTRICT ______________________________________________________________________________ ) SABA SOFTWARE, INC., ) ) Appeal from the Circuit Plaintiff-Appellee, ) Court of Cook County. ) v. ) No. 13 L 002088 ) DEERE & COMPANY, ) The Honorable Joan E. Powell, ) Judge Presiding. Defendant-Appellant. ) ) ) ______________________________________________________________________________

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 (735 ILCS 5/2-104 (West 2012)) No. 1-13-2381

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. 2014).

¶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) restitution for

2 No. 1-13-2381

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 that:

“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.

3 No. 1-13-2381

¶ 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 & Company v. Saba Software, Inc., No. 4:12-cv-04105-SLD-JAG (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.”

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

Rules of Civil Procedure for, among other claims, lack of subject matter jurisdiction, because

4 No. 1-13-2381

both parties are Delaware corporations and therefore the parties were not subject to diversity.

Fed. R. Civ. P. 12(b)(1). On May 15, 2013, Deere voluntarily dismissed the federal suit without

prejudice pursuant to Rule 41 of the Federal Rules of Civil Procedure.

¶ 18 IV. Motion to Transfer

¶ 19 After dismissal of the federal action, Saba filed this suit on February 26, 2013, in the

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

Related

The Bremen v. Zapata Off-Shore Co.
407 U.S. 1 (Supreme Court, 1972)
Gridley v. State Farm Mutual Automobile Insurance
840 N.E.2d 269 (Illinois Supreme Court, 2005)
Foutch v. O'BRYANT
459 N.E.2d 958 (Illinois Supreme Court, 1984)
Martin-Trigona v. Roderick
331 N.E.2d 100 (Appellate Court of Illinois, 1975)
Weaver v. Midwest Towing, Inc.
507 N.E.2d 838 (Illinois Supreme Court, 1987)
Eychaner v. Gross
779 N.E.2d 1115 (Illinois Supreme Court, 2002)
Corral v. Mervis Industries, Inc.
839 N.E.2d 524 (Illinois Supreme Court, 2005)
Progressive Universal Insurance v. Liberty Mutual Fire Insurance
828 N.E.2d 1175 (Illinois Supreme Court, 2005)
Williams v. Illinois State Scholarship Commission
563 N.E.2d 465 (Illinois Supreme Court, 1990)
Kalata v. Anheuser-Busch Companies, Inc.
581 N.E.2d 656 (Illinois Supreme Court, 1991)
Saddle Signs, Inc. v. Adrian
650 N.E.2d 245 (Appellate Court of Illinois, 1995)
Langenhorst v. Norfolk Southern Ry. Co.
848 N.E.2d 927 (Illinois Supreme Court, 2006)
Bezan v. Chrysler Motors Corp.
636 N.E.2d 1079 (Appellate Court of Illinois, 1994)
Vinson v. Allstate
579 N.E.2d 857 (Illinois Supreme Court, 1991)
American Access Casualty Company v. Reyes
2012 IL App (2d) 120296 (Appellate Court of Illinois, 2012)
Hussein v. L.A. Fitness International, L.L.C
2013 IL App (1st) 121426 (Appellate Court of Illinois, 2013)
SABA Software, Inc. v. Deere & Co.
2014 IL App (1st) 132381 (Appellate Court of Illinois, 2014)
Taylor v. Southern Railway Co.
182 N.E. 805 (Illinois Supreme Court, 1932)
May v. Chas. O. Larson Co.
26 N.E.2d 139 (Appellate Court of Illinois, 1940)

Cite This Page — Counsel Stack

Bluebook (online)
2014 IL App (1st) 132381, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saba-software-inc-v-deere-company-illappct-2014.