Su v. Su
1:19-cv-07772
| N.D. Ill. | Jul 21, 2025Background
- Yung-Ting Su (plaintiff/counter-defendant) filed a motion to dismiss counterclaims brought by Leechin Su (defendant/counter-plaintiff).
- The core of the dispute centers on allegations by Leechin against Yung-Ting, including fraud, breach of fiduciary duty, shareholder oppression, and breach of contract, relating to the conduct of Leadertech Systems of Chicago, Inc.
- Yung-Ting argued that some of Leechin’s counterclaims should have been raised derivatively by the corporation, not by Leechin individually.
- The motion invoked Rule 12(b)(6), which tests the legal sufficiency of claims rather than their factual merit.
- The court analyzed whether Leechin's counterclaims met the pleading standards required by federal law, specifically the plausibility standard articulated in Supreme Court cases.
- The court found Yung-Ting’s arguments largely conclusory and unsupported by legal authority, and so denied the motion to dismiss.
Issues
| Issue | Yung-Ting's Argument | Leechin's Argument | Held |
|---|---|---|---|
| Standing to assert counterclaims | Only Leadertech (the corporation) suffered the harm alleged, so Leechin can’t bring these claims individually | Counterclaims are properly pled by Leechin individually based on her alleged personal harms | Court found Yung-Ting’s derivative argument underdeveloped and waived it |
| Sufficiency of fraud claim | Fraud not adequately pled (no fraud occurred) | Alleged facts support plausible fraud claim | Sufficiently pled; survives dismissal |
| Sufficiency of breach of fiduciary duty/shareholder oppression claims | Facts do not establish these claims | Alleged facts support claims | Sufficiently pled; survives dismissal |
| Breach of contract claim | No mandatory obligation in bylaws; breach not shown | Alleged facts support plausible contract breach | Sufficiently pled; survives dismissal |
Key Cases Cited
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (sets the facial plausibility pleading standard on a motion to dismiss)
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (2007) (describes plausibility requirement for federal complaints)
- Lewis v. Mills, 677 F.3d 324 (7th Cir. 2012) (underdeveloped arguments are deemed waived)
- Gross v. Town of Cicero, Ill., 619 F.3d 697 (7th Cir. 2010) (conclusory analysis results in waiver)
- Cozzi Iron & Metal, Inc. v. U.S. Off. Equip, Inc., 250 F.3d 570 (7th Cir. 2001) (courts accept well-pleaded allegations as true on a motion to dismiss)
- Hallinan v. Fraternal Order of Police of Chi. Lodge No. 7, 570 F.3d 811 (7th Cir. 2009) (restates the standard for Rule 12(b)(6) motions)