Gruca v. Alpha Therapeutic Corporation and the Green Cross Corporation

19 F. Supp. 2d 862 (1998)

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Gruca v. Alpha Therapeutic Corporation and the Green Cross Corporation

United States District Court for the Northern District of Illinois
19 F. Supp. 2d 862 (1998)

Facts

Alpha Therapeutic Corporation (Alpha) (defendant) manufactured a product used for treating patients with blood disorders. Alpha was a subsidiary of the Green Cross Corporation (Green Cross), a Japanese company. Alpha conducted business in Illinois, but Green Cross did not. Green Cross had no offices or employees in Illinois. Alpha had sole control over the manufacturing operations in Illinois. Green Cross formed Alpha to obtain adequate production supply but did not share profits or losses with Alpha. Stephen Poole died after using Alpha’s product. Poole’s surviving spouse, Peggy Gruca (plaintiff), filed suit, alleging that Alpha was negligent. Gruca amended the complaint, adding Green Cross to the lawsuit. Gruca alleged that Green Cross, Alpha’s parent corporation, was also liable for negligence. Green Cross motioned to dismiss on the grounds that the district court lacked jurisdiction over Green Cross. The district court had undisputed jurisdiction over Alpha. Gruca opposed the motion, arguing that the district court also had jurisdiction over Green Cross because Alpha was the alter-ego of Green Cross or because Alpha and Green Cross were joint venturers.

Rule of Law

Issue

Holding and Reasoning (Gottschall, J.)

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