WeR1 Network v. Cyberlynk Network, Inc.

57 F. Supp. 3d 926, 2014 U.S. Dist. LEXIS 154908, 2014 WL 5514191
CourtDistrict Court, E.D. Wisconsin
DecidedOctober 31, 2014
DocketCase No. 11-C-0901
StatusPublished

This text of 57 F. Supp. 3d 926 (WeR1 Network v. Cyberlynk Network, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
WeR1 Network v. Cyberlynk Network, Inc., 57 F. Supp. 3d 926, 2014 U.S. Dist. LEXIS 154908, 2014 WL 5514191 (E.D. Wis. 2014).

Opinion

DECISION DENYING MOTION FOR SUMMARY JUDGMENT (DOC. 84) AND MOTION FOR PARTIAL SUMMARY JUDGMENT (DOC. 86)

C.N. CLEVERT, JR., District Judge.

This case involves those terms and conditions that appear on internet websites and, more particularly, what happens when the provider has kept no copy of them and the customer claims .not to have seen them. Through a website, WeRl World Network signed up for data storage with Cyber-Lynk Network, Inc. The parties do not dispute that they had a contract by which CyberLynk provided the storage to WeRl in exchange for money for about eleven months. Instead, they dispute what the details of the contract were, as neither party memorialized the agreement. If WeRl’s version of the facts is true, Cyber-Lynk guaranteed safe and secure storage in exchange for payment from WeRl, without detailed terms and conditions or limitations of liability. If CyberLynk’s version of the facts is true, detailed terms and conditions existed (even if WeRl’s representative failed to read them) and WeRl assumed the risk of a loss of data by CyberLynk and also agreed to limit its damages for any data loss.

WeRl did not back up or keep copies of all the materials it placed on CyberLynk’s server and suffered a data loss when a recently fired CyberLynk employee, Michael Jewson, began deleting files. WeRl filed this case alleging breach of contract and negligence against CyberLynk along with conversion and computer fraud against Jewson.1 CyberLynk counterclaimed for breach of a contract’s forum selection provision because WeRl filed this case in Hawaii rather than in Wisconsin. (This case was transferred to the Eastern District of Wisconsin from the District of Hawaii under 28 U.S.C. § 1404(a) for the convenience of the parties.) CyberLynk has moved for summary judgment, while WeRl has moved for partial summary judgment.

Summary judgment is proper if the depositions, documents or electronically stored information, affidavits or declarations, stipulations, admissions, interrogatory answers or other materials show that there is no genuine dispute of material fact and the moving party is entitled to judgment as a matter of law. Fed.R.Civ.P. 56(a), (c); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). The moving party bears the initial burden of demonstrating it is entitled to summary judgment. Celotex, 477 U.S. at 323, 106 S.Ct. 2548. Once this burden is met, the nonmoving party must designate specific facts to support or defend each element of its cause of action, showing that there is a genuine issue for trial. Id. at 322-24, 106 S.Ct. 2548. In analyzing whether a question of fact exists, the court construes the evidence in the light most favorable to the party opposing the motion. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

The mere existence of a factual dispute does not defeat a summary judgment motion; there must be a genuine issue of material fact for the case to survive. Id. [929]*929at 247-48, 106 S.Ct. 2505. “Material” means that the factual dispute must be outcome-determinative under governing law. Contreras v. City of Chicago, 119 F.3d 1286, 1291 (7th Cir.1997). Failure to support any essential element of a claim renders all other facts immaterial. Celotex, 477 U.S. at 323, 106 S.Ct. 2548. To establish that a question of fact is “genuine,” the nonmoving party must present specific and sufficient evidence that, if believed by a jury, would support a verdict in its favor. Fed.R.Civ.P. -56(e); Anderson, 477 U.S. at 249, 106 S.Ct. 2505.

When both parties move for summary judgment, each is required (for its motion) to show that no genuine issues of material fact exist, taking the facts in the light most favorable to the opponent. If genuine issues of material fact exist, neither party is ■entitled to summary judgment. Lac Courte Oreilles Band of Lake Superior Chippewa Indians v. Voigt, 700 F.2d 341, 349 (7th Cir.1983). That both parties move for summary judgment does not mean that a trial is unnecessary or empower the court to enter judgment as it sees fit. See 10A Charles Alan Wright et ah, Federal Practice & Procedure § 2720 at 327-28 (3d ed.1998). Cross-motions for summary judgment do not constitute a waiver of trial. See Miller v. LeSea Broad., Inc., 87 F.3d 224, 230 (7th Cir. 1996). The proper procedure is to assess the merits of each summary judgment motion independently. See Santaella v. Metro. Life Ins. Co., 123 F.3d 456, 461 (7th Cir.1997).

UNDISPUTED FACTS

Plaintiff WeRl World Network is a Hawaii-incorporated and Hawaii-based television and software production company. (Doc. 84 Statement of Undisputed Material Facts ¶ 3.2) Ingrid Wang is the CEO and owner of WeRl. (Id.) Wang formed WeRl in 2000 to create, produce, and distribute children’s educational shows. (Doc. 86 Mem. at 2.) WeRl created and produced “Zodiac Island,” a children’s “edutainment” show, which used animation as well as live video and focused on the Chinese lunar calendar. (Id.) To develop, create and produce Zodiac Island, designers, actors, animators, creators, and others contributed from around the world, including Hong Kong, China, The Philippines, Hawaii, and California. (Id. at 3.)

Due to' the world-wide involvement of people in the creation of Zodiac Island, Wang and Dr. Bernard Yáged, Chief Financial Officer of WeRl in 2008, decided that WeRl needed a safe and central storage location for its computer files, including digital, production, and animation files. (Doc. 86 Mem. at 3; Doc. 113 at 18.) WeRl determined that it must have a central online data storage provider that would allow everyone involved in the creation of Zodiac Island to upload and access [930]*930files online. (Doc. 86 Mem. at 3; Doc. 113 at 18; see Doc. 118 ¶ 2.)

CyberLynk is a Wisconsin corporation that provides internet services from its business location in Franklin, Wisconsin. (Doc. 84 Statement ¶ 4.) Michael Jewson is a former employee of CyberLynk. (Id., ¶ 5.) In 2008, CyberLynk had six employees, including Jewson. (Doc. 110, ¶ 4.)

In 2008, Yaged researched several online data storage providers that would allow WeRl to upload and store its data electronically in one location. (Doc. 86 Mem. at 3.) After reading reviews on Cy-berLynk’s services and reviewing Cyber-Lynk’s website, on April 12, 2008, WeRl signed up to use CyberLynk’s File Transport Protocol3 (“FTP”) hosting services (Doc. 113 at 3; see Doc. 118, ¶ 3; Doc.

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Bluebook (online)
57 F. Supp. 3d 926, 2014 U.S. Dist. LEXIS 154908, 2014 WL 5514191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wer1-network-v-cyberlynk-network-inc-wied-2014.