Software Implementation Litigation
Chad has represented companies and individuals in significant trade secrets misappropriation, technology and software litigation. Representative matters include:
- Representing a consulting firm in a significant arbitration regarding breach of contract and fraud claims brought by a customer regarding the implementation of an Enterprise Resource Planning (ERP) system that experienced significant problems after the system went live.
- Defending consulting firm against putative class action for negligence, breach of contract, fiduciary duty and products liability claims brought by end-users of a government claims submission system consultant helped design and implement.
- Assisting numerous software implementation consultants in successfully resolving breach and misrepresentation claims pre-litigation, including claims of missed deadlines, underperformance, staffing inexperienced or unqualified personnel, nonpayment or underpayment of fees, among others. Working with clients either to help terminate relationships or reset relationships with revised contractual conditions.
- Representing a global pharmaceutical company in a dispute with its software implementation vendor regarding significant overruns and missed deadlines in a global ERP implementation.
Trade Secrets & Restrictive Covenant Litigation
Chad has represented companies and individuals in significant trade secrets misappropriation, technology and software litigation. Representative matters include:
- Edgenet, Inc. v. Home Depot U.S.A., Inc. (7th Cir. 2011; Wis. 2012), in which Sidley obtained dismissal of a federal copyright claim and summary judgment on state court claims of misappropriation of trade secrets (including algorithms, data models and programming logic) and violation of restrictive covenants in litigation brought by Edgenet, a vendor of Home Depot, alleging that Home Depot and one of Edgenet’s former employees misappropriated Edgenet’s trade secrets in developing competing software for running Home Depot’s website.
- Prosecuting and defending retail mortgage lenders in approximately one dozen actions regarding claims for breach of restrictive covenants, tortious interference with contract, tortious interference with current and potential customer relationships, conspiracy and unfair business practices.
- Obtaining dismissal with prejudice on the pleadings on behalf of clients in the telemedicine and online lab testing industries in a case alleging the misappropriation of trade secrets, including marketing processes (search terms, keywords and advertising design), automated processes (software code and software design) and financial information.
- Prosecuting non-compete claims against former partners of e-commerce website.
- Defeating a motion for Temporary Restraining Order on behalf of a technology company alleged to have hired plaintiff’s former employee in violation of restrictive covenants for purposes of accessing trade secrets, including customer lists and prospects.
- Representing a home healthcare company in litigation regarding the alleged theft of its trade secrets by former employees.
Tax Controversy
Chad represents both corporations and individuals in a variety of tax controversies, covering sales tax (retailer’s occupation tax and use tax), corporate and individual income tax, estate tax, franchise tax and utility tax, including:
- Hartney Fuel Oil Co. v. Department of Revenue, 2013 IL 115130 (Ill. Nov. 21, 2013), in which Sidley prevailed in a Protest Monies Act case on behalf of the Hartney Fuel Oil Company, brought against the Illinois Department of Revenue, protesting the Department’s $23 million assessment of Hartney for prior sales tax payments. Chad handled the trial and helped defend the trial judgment on appeal, culminating in affirmance by the Illinois Supreme Court in a case that invalidated Illinois sales tax regulations that had been in place for more than 50 years.
- Regional Transportation Authority v. United Airlines, Inc. et al. (Cook County, IL) & Regional Transportation Authority v. American Airlines, Inc. et al. (Cook County, IL), in which Chad is the lead litigator representing both United Airlines and American Airlines in separate lawsuits brought by the Regional Transportation Authority, alleging that each airline avoided paying tens of millions of dollars in sales tax monies for jet fuel used at O’Hare through sourcing those sales to a lower tax jurisdiction in Illinois.
- Chad also has represented a number of new technology companies in cases brought by state and local taxing authorities attempting to apply 20th century tax laws to 21st century technology, including:
- City of Chicago v. Expedia Inc., et al., 2017 IL App (1st) 153402 (Ill. App. 2017), in which the Illinois Appellate Court reversed a $29 million judgment for unpaid hotel taxes against clients Expedia Inc., Hotels.com, and Hotwire.
- Obtaining dismissal on behalf of Lyft, Inc., of a case brought by the Chicago Convention and Tourism Bureau and other local entities in the Circuit Court of Cook County seeking to hold Lyft liable for not paying airport departure taxes applicable to taxis and limousines.
- Representing an online ticket marketplace in an action against a state Department of Revenue concerning assessed sales tax liability.
Consumer Class Actions
Chad has defended consumer class actions, both at the trial level and on appeal and in conjunction with national Federal Multi-District Litigation, including:
- Wippman v. American Airlines, Inc. (Cook County, 2018), obtaining dismissal with prejudice on grounds of Airline Deregulation Act preemption in a putative class action seeking damages on a class basis in the United States under a European Union regulation designed to compensation passengers for flight delays.
- De Bouse v. Bayer, 235 Ill. 2d 544 (2009), a victory on summary judgment, upheld on appeal in the Illinois Supreme Court in a certified economic loss class action brought under the Illinois Consumer Fraud Act, alleging that Bayer committed consumer fraud with respect to the marketing of the statin, Baycol, which victory was named one of the top three most significant product liability decisions of 2009 by Drug and Device Law.
Banks and Financial Institutions
Chad has represented banks and other financial institutions against claims of securities fraud, violations of the Fair Credit Reporting Act, as well as breaches of significant contracts in federal courts throughout the country, and represented companies in significant antitrust and environmental litigation in federal court, including.
- Obtaining summary judgment in favor of Citigroup affiliates in a “mass action” alleging securities fraud and common law claims in connection with the plaintiffs’ investments in SmartServ Online, Inc. (2005 WL 2659102 aff’d 482 F.3d 991 (7th Cir. 2007)).Successfully defending Chase Bank USA, N.A., against breach of contract claims regarding Chase’s sale of charged off consumer credit card debt. (403 Fed. Appx. 190 (9th Cir. 2010)).
Internal Investigations
Chad has significant experience conducting a variety of corporate internal investigations throughout the United States and multiple foreign countries, involving instances of tax fraud, theft and embezzlement by executives, inquiries from regulators and law enforcement and alleged violations of the Foreign Corrupt Practices Act.
Federal and State Appellate Courts
Chad has also briefed and argued appeals before federal and state appellate courts, including the U.S. Supreme Court, U.S. Courts of Appeals for the Seventh and Ninth Circuits, the Illinois Supreme Court, Alabama Supreme Court and numerous intermediate state courts of appeals.