Document ID: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-arwd-3_06-cv-03059/USCOURTS-arwd-3_06-cv-03059-0/pdf.json

Parties Involved:
Advantage Information Services, LLC
Plaintiff
Business Information Solutions Group
Defendant
Experian
Defendant

Document Text:

IN THE UNITED STATES DISTRICT COURT

WESTERN DISTRICT OF ARKANSAS

HARRISON DIVISION

ADVANTAGE INFORMATION SERVICES, LLC PLAINTIFF

v. Civil No. 06-3059

BUSINESS INFORMATION SOLUTIONS GROUP and

EXPERIAN DEFENDANTS

O R D E R

Now on this 13th day of December, 2006, comes on for

consideration the Motion Of Experian Information Solutions, Inc.

To Dismiss (document #6) and plaintiff's Motion To Amend Complaint

(document #10), and from said motions, and the response thereto,

the Court finds and orders as follows:

1. Plaintiff alleges the breach of a written contract

between it and the defendants. Experian Information Solutions,

Inc. ("Experian") moves to dismiss for three reasons: failure to

state a claim; improper naming of Experian; and non-existence of

any separate entity known as Business Information Solutions Group.

2. The contention that Experian is improperly named might

well be resolved by plaintiff's Motion To Amend Complaint, if it

were to be granted. However, the motion does not comply with

Local Rule 5.5(e), and -- as explained in ¶5, infra -- the Court

concludes that the proposed amendment would be futile. The Motion

To Amend Complaint will, therefore, be denied. 

3. The contention that defendant Business Information

Solutions Group ("BSIG") is only a division of its corporate

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Although the Complaint named two defendants, plaintiff consistently referred to 1

them as "defendant," and appeared to intend by this term to refer to Experian. Indeed,

there are no allegations whatsoever as against the other named defendant.

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parent, Experian Information Solutions, Inc., and is not an

independent legal entity with the capacity to sue or be sued,

appears to be irrelevant, inasmuch as the Complaint makes no

allegations against BSIG. The Motion To Dismiss as to BSIG will,

therefore, be granted.

4. Turning to the F.R.C.P. 12(b)(6) argument, the Court

notes that a complaint should not be dismissed for failure to

state a claim unless it "appears beyond doubt that the plaintiff

can prove no set of facts in support of his claim which would

entitle him to relief," viewing the allegations in the complaint

in the light most favorable to the plaintiff. Krentz v.

Robertson Fire Protection District, 228 F.3d 897 (8th Cir. 2000).

The material allegations of the Complaint are as follows:

* That plaintiff and Experian had been doing business 1

pursuant to a contract appended to the Complaint and

entitled "Membership Contract." The Membership Contract

allowed for termination by either party upon ten (10)

days written notice.

* That plaintiff was required to sign an addendum (the

"Addendum") to the Membership Contract on January 9,

2004, which provided for immediate termination if

Experian "believes" that there has been a material

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breach.

* That the Addendum changed the terms of the Membership

Contract such that it could be terminated only for

breach.

* That on July 24, 2006, Experian notified plaintiff by email of its intention to terminate the Membership

Contract "due to not meeting Experian membership

guidelines."

* That on August 24, 2006, Experian terminated plaintiff's

membership.

* That the basis of the termination has not been further

explained, and that the termination was done in bad

faith.

5. In resolving a motion to dismiss in a case involving

contracts, it is proper for the Court to consider the contract

documents appended to the Complaint. Stahl v. U.S. Department of

Agriculture, 327 F.3d 697, 700 (8th Cir. 2003). An examination of

the documents in question reflects that plaintiff cannot prove

that the Addendum relates to the Membership Contract. The

Membership Contract was signed on June 1, 1999. the Addendum

recites that it amends a Reseller Services Agreement dated June

10, 1999. The Membership Contract deals with the terms pursuant

to which plaintiff can request, and Experian will supply, credit

information. The Addendum deals with the delivery of information

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via internet, and security concerns related to that process. Thus

the names of the documents, the dates they were signed, and the

content thereof, all militate against a finding that the

provisions of the Addendum create a cause of action with reference

to the Membership Contract. As noted in Woody v. Dirani, 2006 WL

2523458 (W.D. Ark. 2006), "[w]here the language of the attached

contract contradicts the allegations of the complaint, the

contractual language governs for the purposes of dismissal."

In addition, the Court notes that the Membership Contract

allowed for termination based on ten days' written notice, and

that according to the Complaint, Experian gave thirty days'

written notice of termination. 

For the foregoing reasons, the Court finds that plaintiff can

prove no set of facts in support of its claim which would entitle

it to relief, and the Motion To Dismiss with regard to Experian

will be granted.

IT IS THEREFORE ORDERED that plaintiff's Motion To Amend

Complaint (document #10) is denied.

IT IS FURTHER ORDERED that the Motion Of Experian Information

Solutions, Inc. To Dismiss (document #6) is granted, and this

matter is dismissed.

IT IS SO ORDERED.

 /s/ Jimm Larry Hendren 

JIMM LARRY HENDREN

UNITED STATES DISTRICT JUDGE

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