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Trade Secret Plaintiff Cannot Avoid Forum Selection Clause by Dividing Claims


Nulogy Corp. v. Menasha Packaging Co. LLC, No. 21 C 1164, Slip Op. (N.D. Ill. Mar. 10, 2022) (Rowland, J.).

Judge Rowland granted defendant Menasha’s motion to dismiss for forum non conveniens and denied defendant Deloitte’s as moot in this trade secret action involving supply chain software.

The parties Agreement had a forum selection clause mandating that Canadian law governed and that any action related to the Agreement be brought in Toronto. While Nulogy’s claims are based in trade secret, not upon the Agreement, the forum selection clause still governed. The Supreme Court requires that forum selection clauses be read broadly. And here Nulogy’s claim is supported by the Agreement.

The fact that Deloitte is not party to the Agreement does not avoid the forum selection clause. Nulogy originally sued both Menasha and Deloitte in Canada, but then voluntarily dismissed Deloitte and dropped its Canadian trade secret claims. A plaintiff cannot avoid forum selection clauses by selecting its claims and forums separately.


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