RITCHIE MULTI-STRATEGY GLOBAL, LLC, f/k/a/ CAPITAL, LLC, Plaintiff,
HUIZENGA MANAGERS FUND, LLC, Defendant.
Submitted: December 17, 2018
Defendant's Motion to Dismiss the Amended Complaint
GRANTED IN PART.
A. Sensing, Esq. (Argued), Ryan C. Cicoski, Esq., Attorneys
L. Caponi, Esq., Matthew B. Goeller, Esq., K&L Gates,
LLP, Christopher J. Barber, Esq. (Argued), Williams
Montgomery & John Ltd., Attorneys for Defendant
Mary M. Johnston, Judge
AND PROCEDURAL CONTEXT
case is one of nine actions brought by either the Defendant
or an entity related to the Plaintiff. Two cases were filed
in Cook County, Illinois, one case in DuPage County,
Illinois, one case in Madison County, Illinois, one case in
St. Clair County, Illinois, three cases in Delaware Superior
Court, and one action in the Delaware Court of Chancery. The
first two cases were brought by Huizenga Managers Fund, LLC
in Cook County. The subsequent cases were filed by various
Ritchie entities. All of the pending Illinois cases have been
transferred to Cook County.
2007 Illinois suit arose from a dispute over the sale of
securities. Huizenga Managers Fund, LLC
("Huizenga") is a hedge fund. Ritchie
Multi-Strategy Global ("Ritchie") made two sales of
securities to Huizenga through a Subscription Agreement.
Huizenga brought suit against Ritchie in the Cook County
Circuit Court in Illinois, alleging violations of the
Delaware Securities Act ("DSA"). After a
twenty-six-day trial, the Cook County court entered judgment
in favor of Huizenga in regard to one of the two sales. On
appeal, the Illinois Court of Appeals affirmed that judgment
and granted Huizenga's cross-appeal for recovery relating
to the other sale as well. The trial court entered a second
judgment. On November 9, 2017, Ritchie filed a notice of
appeal of the second judgment.
second pending Cook County action asserts claims for fraud,
conspiracy and fraudulent transfer in connection with the
Ritchie entity filed the first Delaware action in this Court,
seeking indemnification from Huizenga. By Opinion dated
December 21, 2017, this Court stayed in favor of the Illinois
Madison County Illinois case was filed by "John
Doe" against Huizenga, alleging disclosure of
confidential information and seeking injunctive relief. The
next Illinois action originally was filed in St. Clair
County, also seeking injunctive relief on the basis of
disclosure of confidential information. The St. Clair County
judge transferred that case to Cook County.
Ritchie entity filed suit in the Delaware Court of
Chancery alleging disclosure of confidential
information and seeking injunctive relief. A motion to
dismiss is pending.
action is the second Delaware Superior Court Case. A Ritchie
entity alleges breach of contract on the grounds that
Huizenga pursued judgments in the Illinois litigation, and
disclosed confidential information in the course of the
judgment collection proceedings.
latest DuPage County, Illinois action filed by a Ritchie
entity alleged that Huizenga disclosed confidential
information and made disparaging comments in breach of
contract. Plaintiffs motion to voluntarily dismiss was
pending DuPage County appeal was dismissed by Order dated
December 21, 2018.
third case in Delaware Superior Court,  a Ritchie entity
requests indemnification in connection with the Illinois
judgments. Defendant's motion to dismiss or stay is in
the briefing stage.
before the Court at this time is Huizenga's Motion to
Dismiss the Amended Complaint. Huizenga Managers Fund, LLC
("Huizenga") contends that: venue in Delaware is
improper and the McWane factors favor two prior
actions in Cook County, Illinois; this Court lacks
jurisdiction over the claims of Ritchie Multi-Strategy
Global, LLC ("Ritchie"); and Ritchie has failed to
state a claim upon which relief may be granted.