Brook v. McCormley, No. 16-4255 (7th Cir. 2017)Annotate this Case
Cortina, a now-dissolved corporation, was wholly-owned by the Trust. The Trust’s beneficiaries lived in Illinois when the Trust was established; in the 1980s, they relocated to Arizona. In 2011, the Trust became an Arizona trust. Brook, an Illinois resident, was the president of Cortina and the Trust's trustee. In 2001, Brook retained an Arizona firm to represent Cortina in a lawsuit concerning a ground lease created when Cortina sold land in Arizona. The suit was dismissed in 2002. In 2005, and in 2013, Cortina sought additional legal advice from the firm related to the same lease. In 2014, Cortina requested that the firm initiate a nonjudicial foreclosure on the property. The firm decided that involvement in the foreclosure would pose a conflict of interest and declined the case. Throughout the firm’s 13 years representing Cortina, the parties exchanged phone calls and correspondence between Arizona and Illinois, but all in-person meetings occurred in Arizona. Cortina sued the firm in Illinois alleging legal malpractice, breach of contract, and breach of fiduciary duty. After the district court requested a jurisdictional statement, Cortina substituted Brook as the plaintiff. The Seventh Circuit affirmed dismissal for lack of personal jurisdiction. While the defendants entered into a business relationship with an Illinois plaintiff, the activities were strictly conducted in Arizona. There was no evidence that Defendants reached out to or solicited Cortina, the Trust, or Brook.