United States Gypsum Company v. Dependable LLC

CourtDistrict Court, N.D. Illinois
DecidedSeptember 26, 2025
Docket1:22-cv-00268
StatusUnknown

This text of United States Gypsum Company v. Dependable LLC (United States Gypsum Company v. Dependable 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
United States Gypsum Company v. Dependable LLC, (N.D. Ill. 2025).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION

UNITED STATES GYPSUM CO., ) ) Plaintiff, ) ) No. 22-cv-268 v. ) (Consolidated with No. 25-cv-4442) ) DEPENDABLE, LLC, and KEENE ) Judge Jeffrey I. Cummings BUILDING PRODUCTS, INC., ) ) Defendants. ) ) ---------------------------------------------------- ) DEPENDABLE, LLC, ) ) Counter-Plaintiff, ) ) v. ) ) UNITED STATES GYPSUM CO., ) ) Counter-Defendant, ) ----------------------------------------------------- ) KEENE BUILDING PRODUCTS, INC., ) and KEENE, INC., ) ) Plaintiffs, ) ) v. ) ) UNITED STATES GYPSUM CO., ) ) Defendant.

MEMORANDUM OPINION AND ORDER

United States Gypsum (“USG”), a manufacturer of gypsum and cement-based construction products, brings this action against defendants Dependable, LLC (“Dependable”) and its alleged affiliate Keene Building Products, Co. (“KBP”), asserting claims related to a breach of a prior settlement agreement. KBP (but not Dependable) now seeks to dismiss plaintiff’s second amended complaint pursuant to Rules 12(b)(2) and 12(b)(6),1 arguing that the Court lacks personal jurisdiction over KBP and that USG has otherwise failed to state its claims. For the reasons set forth below, the Court denies KBP’s request to dismiss for lack of jurisdiction under Rule 12(b)(2), but grants KBP’s request to dismiss under Rule 12(b)(6) for failure to state a claim. USG’s claims against KBP are dismissed without prejudice and with leave to replead to

the extent USG can do so in accordance with Rule 11. I. LEGAL STANDARD

A motion under Rule 12(b)(2) tests the Court’s personal jurisdiction over a defendant. “The plaintiff need not include facts alleging personal jurisdiction in the complaint, but ‘once the defendant moves to dismiss the complaint under Federal Rule of Civil Procedure 12(b)(2) for lack of personal jurisdiction, the plaintiff bears the burden of demonstrating the existence of jurisdiction.’” Curry v. Revolution Lab’ys, LLC, 949 F.3d 385, 392 (7th Cir. 2020), quoting Purdue Research Found. v. Sanofi-Synthelabo, S.A., 338 F.3d 773, 782 (7th Cir. 2003). Where, as here, “the Court rules on the motion without a hearing, the plaintiff need only establish a prima facie case of personal jurisdiction.” MG Design Assocs., Corp. v. CoStar Realty Info., Inc., 267 F.Supp.3d 1000, 1010 (N.D.Ill. 2017). In determining whether plaintiff has made such a showing, the Court will “read the complaint liberally, in its entirety, and with every inference drawn in favor” of the plaintiff. Cent. States, Se. & Sw. Areas Pension Fund v. Phencorp Reinsurance Co., 440 F.3d 870, 878 (7th Cir. 2006) (cleaned up).

1 KBP’s motion to dismiss was initially targeted at USG’s first amended complaint. In response, however, USG voluntarily dismissed Counts VI and IX-XII. By agreement of the parties and with leave of Court, USG then filed its second amended complaint and the parties agreed that the parties’ briefing on the motion to dismiss would stand. Of course, any arguments in KBP’s motion targeted at Counts VI and IX- XII are now moot and will not be addressed by the Court. To survive a Rule 12(b)(6) motion to dismiss, a complaint must “state a claim to relief that is plausible on its face.” Bell. Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007). A claim is plausible when the plaintiff “pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Ashcroft v. Iqbal, 556 U.S. 662, 678 (2009). When considering a motion to dismiss under Rule 12(b)(6), the Court

construes “the complaint in the light most favorable to the [non-moving party] accepting as true all well-pleaded facts and drawing reasonable inferences in [the non-moving party’s] favor.” Yeftich v. Navistar, Inc., 722 F.3d 911, 915 (7th Cir. 2013). Dismissal of an action under Rule 12(b)(6) is “warranted only if no relief could be granted under any set of facts that could be proved consistent with the allegations.” Christensen v. Cnty. of Boone, 483 F.3d 454, 458 (7th Cir. 2007). Nonetheless, courts are permitted to consider “any facts set forth in the complaint that undermine the plaintiff’s claim.” Bogie v. Rosenberg, 705 F.3d 603, 609 (7th Cir. 2013) (cleaned up). When resolving a motion under Rule 12(b)(6), “in addition to the allegations set forth in

the complaint itself,” the Court may consider, “documents that are attached to the complaint, documents that are central to the complaint and are referred to in it, and information that is properly subject to judicial notice.” Williamson v. Curran, 714 F.3d 432, 436 (7th Cir. 2013). II. BACKGROUND The following relevant allegations are taken from USG’s second amended complaint, (Dckt. #221), the documents attached thereto, including the settlement agreement at issue, and any documents and information that are subject to judicial notice. Plaintiff USG is a manufacturer of gypsum plaster and gypsum and cement-based construction products, including poured gypsum flooring underlayment products. (Dckt. #221 ¶14). Defendant Dependable is a distributor of gypsum floor underlayment products. (Id. ¶15). Defendant KBP is a manufacturer that offers a wide range of products for various construction applications and is an “affiliate” of Dependable. (Id. ¶¶7, 16). USG alleges that KBP “acquired and added” Dependable “to its family of companies” to “help KBP create stability and manufacturing expertise in floor underlayment,” including gypsum floor underlayment. (Id.

¶16). USG alleges further that Dependable and KBP: share the same address in Ohio; the same shareholder, officers, directors and employees; the same customers; the same email accounts; the same lawyers; and, upon information and belief, the same losses and the same pricing terms, profits and other benefits derived from the sales of the products at issue in this case. (Id. ¶8). Dependable, “acting at all relevant times . . . as an affiliate of KBP,” initially made contact with USG in early 2020 for the purpose of facilitating a business relationship. (Id. ¶¶9, 15). Negotiations followed and ultimately, on September 18, 2020, USG and Dependable entered into a Private Label Agreement (“PLA”), pursuant to which USG agreed to manufacture and privately label certain gypsum products for Dependable for agreed-upon prices. (Id. ¶¶5, 9,

17-18; Dckt. #223). The custom products were marketed and sold by Dependable under Dependable’s own product name and packaging. (Dckt. #221 ¶17). Following the execution of the PLA, a dispute arose and USG and Dependable asserted claims against one another, arising under or related to the terms of the PLA. (Id. ¶19). Without admitting fault or liability, USG and Dependable settled their dispute through a settlement agreement (the “Agreement”) on or about November 1, 2021. (Id. ¶20; Dckt. #224). Pursuant to the Agreement, the parties terminated the PLA effective July 31, 2021, and agreed that any products USG delivered prior to August 1, 2021 were considered to have been delivered pursuant to the terms of the PLA. (Dckt. #221 ¶21).

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United States Gypsum Company v. Dependable LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-gypsum-company-v-dependable-llc-ilnd-2025.