delivered the opinion of the court:
Plaintiff, John N. Kapoor, filed a five-count action against defendants which alleged: breach of a hold-harmless agreement against Fujisawa USA, Inc. (FUSA); breach of a merger agreement against Fujisawa Pharmaceutical Co., Ltd. (Fujisawa), and FUSA; tortious interference with contract against the individual defendants; tortious interference with business expectancy against all defendants; and defamation against FUSA and Noboru Maeda. The trial court dismissed plaintiffs complaint pursuant to section 2 — 619(a)(3) of the Code of Civil Procedure (735 ILCS 5/2 — 619(a)(3) (West 1996)), finding that there was another pending federal action between the “same parties” for the “same cause.” Plaintiff appeals the trial court’s order pursuant to Supreme Court Rule 301 (155 111. 2d R. 301).
For the reasons that follow, we affirm.
FACTUAL BACKGROUND 1
Plaintiff is the former chairman and chief executive officer of Lyphomed, Inc., a manufacturer of proprietary and generic drugs. 2 Defendant Fujisawa is a Japanese pharmaceutical company. Defendant FUSA is a Delaware corporation and a wholly owned subsidiary of Fujisawa. Thе remaining individual defendants served at relevant times as officers and/or directors of Lyphomed, Fujisawa and/or FUSA. Between 1980 and 1986, Lyphomed filed false applications and information with the Food and Drug Administration (FDA) in connection with applications to manufacture and sell generic drugs. In 1983, Lyphomed filed an initial public offering with the Securities and Exchange Commission (SEC) but did not disclose its FDA violations. In December 1984, Fujisawa purchased Lyphomed shares from Lyphomed and plaintiff, who at that time did not disclose any information about Lyphomed’s FDA violations. Fujisawa continued to purchase Lyphomed stock from Lyphomed and plaintiff in several transactions. According to Fujisawa, when it bought the stock, it relied on various forms, annual reports and other statements that plaintiff issued, none of which disclosed the FDA application violations. By 1986, Fujisawa replaced plaintiff as Lyphomed’s largest shareholder. During 1987 and 1988, the FDA cited Lyphomed as having good manufacturing practices (GMP) problems at some of its factories. The FDA later issued Lyphomed a regulatory letter which stated that Lyphomed would not receive any new approvals for generic or patented drugs until it cured the GMP problems. Plaintiff and Lyphomed then reassured Fujisawa that Lyphomed was addressing the problems. Lyphomed cured the problems.
On April 28, 1989, as part of a stipulation and settlement of certain derivative and class action suits against them — Murphy v. Kapoor and Harman v. Lyphomed, Inc. 3 —plaintiff and Lyphomed entered into an indemnification agreement, pursuant to which Lyрhomed agreed that it:
. “shall indemnify [plaintiff] for all amounts paid by [him] or that [he is] legally obligated to pay in settlement of the Litigations for an amount up to $9.99 million (the ‘Settlement Amount’) plus interest and for [his] reasonable expenses incurred in connection with the Litigations (including attorneys’ fees) and shall further indemnify [him] and hold [him] harmless from and against any other claim, loss, liability or expense arising out of the Litigations, any facts alleged or conclusions asserted therein, the settlement of the Litigations, their indemnification by [Lyphomed], and any subsequent litigation concerning any of the foregoing matters.”
Murphy was a stockholder derivative action based on breach of fiduciary duty and gross negligence theories. The complaint alleged that, to obtain growth, plaintiff was responsible for Lyphomed operating “at or beyond capacity” and for Lyphomed’s lack of adequate quality control procedures, which led to Lyphomed’s failure to comply with FDA requirements. Harman was a class action which alleged that plaintiff and Lyphomed violated federal securities laws by failing to disclose discrepancies and alterations in Lyphomed’s laboratory records and by concealing Lyphomed’s FDA violations.
On August 31, 1989, Lyphomed, Fujisawa and FUSA executed a merger agreement, pursuant to which Fujisawa and FUSA agreed to honor Lyphomed’s obligations under the April 28 indemnification agreement. In addition, Fujisawa and FUSA agreed to indemnify and hold harmless'plaintiff and other Lyphomed officers and directors “to the fullest extent permitted by law” for claims asserted by Lyphomed or its shareholders based on acts or omissions that occurred before the effective date of the merger. In addition to the Lyphomed stock it bought earlier, Fujisawa purchased more Lyphomed stock on the open market and acquired Lyphomed on April 5, 1990. It merged Lyphomed into FUSA the next day.
In August 1992, Fujisawa and FUSA sued plaintiff in the United States District Court for the Northern District of Illinois. Their complaint alleged that, as a result of Lyphomed’s false and misleading FDA generic drug applications, FUSA was required to withdraw several drugs from the market and was unable to obtain FDA approval of other drugs. In addition, the complaint alleged that plaintiff knew of and participated in fraud against the FDA and failed to disclose material facts about the FDA generic drug applications to Fujisawa in connection with Fujisawa’s purchase of Lyphomed’s stock. The complaint asserted claims for violations of federal securities laws and the Racketeer Influenced and Corrupt Organizations (RICO) Act (18 U.S.C. § 1962(c) (1994)), as well as claims for state law fraud, breach of fiduciary duty, and breach of warranty. Fujisawa and FUSA alleged that they suffered damages of more than $100 million.
On July 25, 1996, the federal district court granted summary judgment for plaintiff on the securities fraud claims because they were time-barred. Finding that the complaint failed to plead adequately a “pattern” of racketeering by plaintiff, the court dismissed the RICO count for failure to state a claim upon which relief may be granted. In addition, the court declined to exercise supplemental jurisdiction over the remaining state law claims and dismissed them without prejudice. Fujisawa Pharmaceutical Co.,
“Kapoor controlled Lyphomed and, if those allegations are believed, used his control to conduct the business of Lyphomed through a pattern of racketeering activity extending over six years and consisting of innumerable mail and wire frauds successfully designed to lure Fujisawa into investing more and more of its money in Lyphomed, much of which went into Kapoor’s pocket.” Fujisawa Pharmaceutical Co.,115 F.3d at 1338 .
The appellate court remanded the case to the district court for further proceedings, and the action is still pending.
Before the federal court of appeals issued its decision, plaintiff filed his state action. In his amended complaint plaintiff alleged that Fujisawa and FUSA, by proceeding with the federal action, breached the April 28, 1989, and August 31, 1989, contracts under which they expressly agreed to hold plaintiff harmless for the claims made in the federal action. Plaintiff also alleged that the individual defendants tortiously interfered with those contracts and that defendants defamed him in the July 31, 1996, press release. The amended complaint contained the following claims: (1) breach of a hold-harmless agreement agаinst FUSA; (2) breach of a merger agreement against Fujisawa and FUSA; (3) tortious interference with contract against the individual defendants; (4) tortious interference with business expectancy against all defendants; and (5) defamation against FUSA and Noboru Maeda.
The trial court dismissed the amended complaint pursuant to section 2 — 619(a)(3). The trial court found:
“[I]t is clear from reading the intendment of the averments of the Amended Complaint in the light most favorable to Kapoor, that the grievances he has and the causes of аction he seeks to state in this Illinois trial court all arise out of and are inextricably intertwined with the transactional occurrences that form the core subject matter of the ongoing federal district court litigation. This court finds that for purposes of [section 2- — 619(a)(3)] there is another cause of action currently pending between the ‘same parties’ for the ‘same cause’ and that for reasons of comity, judicial economy and the efficient overall administration of justice it would be prudent to dismiss this state court suit.”
At the time of plaintiffs state action, there was another pending suit in Delaware. In Kapoor v. Fujisawa Pharmaceutical Co., 4 plaintiff sued Fujisawa and FUSA, seeking indemnification for fees and expenses he incurred in defending the federal action. His amended complaint sought fees and expenses for prosecuting the Illinois state action. The amended complaint alleged in part that his Illinois action was “asserted as part of his defense to Fujisawa’s and FUSA’s claims in the Federal Action.” In addition, plaintiff alleged that the Illinois action sought “to defeat Fujisawa’s Federal Action and to secure his rights to be ‘held harmless’ by Fujisawa and FUSA for his losses and expenses as a result of the unfounded allegations by Fujisawa and FUSA in the Federal Action.” The Delaware action is still pending.
ISSUE PRESENTED FOR REVIEW
On appeal, plaintiff argues that the trial court erred in granting defendants’ section 2 — 619(a)(3) motion to dismiss his complaint because the pending federal court action is not for the “same cause” or between the “same partiеs” as his state court action.
OPINION
A defendant may move for dismissal of an action under section 2 — 619(a)(3) upon the grounds that there is “another action pending between the same parties for the same cause.” 735 ILCS 5/2— 619(a)(3) (West 1996). Section 2 — 619(a)(3) is an “inherently procedural” device aimed at avoiding duplicative litigation (Miller v. Thomas,
In defining whether the parties are the same, the parties need not be identical. Schnitzer,
In evaluаting whether two actions are for the same cause, a crucial inquiry is “whether the two actions arise out of the same transaction or occurrence [citation], not whether the legal theory, issues, burden of proof or relief sought materially differ between the two actions.” Terracom Development Group, Inc. v. Village of West-haven,
Plaintiff contends that the trial court erred in dismissing his complaint pursuant to section 2 — 619(a)(3) because the pending federal court action is not for the “same cause” or between the “same parties” as his state court action. We disagree.
First, the trial court did not abuse its discretion in finding that the actions were for the “same cause.” In this case, the two actions arose out of the same occurrence, which is plaintiffs alleged concealment of Lyphomed’s FDA violations from Fujisawa while it was buying Lyphomed stock. The federal action involved those allegations, which are contained in the remaining pending RICO cause of action. Although the state action involves different causes of action alleged by plaintiff, they arose out of plaintiffs alleged concealment of the FDA violations. In the state action, plaintiff sought primarily to prevent defendants from suing him for the alleged concealment and sought to defeat alleged defamatory statements that he is a racketeer. As plaintiff himself alleged in his Delaware action against Fujisawa and FUSA, plaintiffs state action seeks to avoid liability for the allegations in the federal action. In the state actiоn, plaintiff alleged that Fujisawa and FUSA breached its contracts, which agreed to “indemnify [him] and hold [him] harmless from and against any other claim, loss, liability or expense” resulting from the settled derivative and class actions “and any subsequent litigation concerning any of the foregoing matters.” The settled derivative and class actions involved substantially the same allegations against plaintiff as in the federal action.
The present case is similar to Illinois Central, in which a railroad employee initiated a federal suit against his employer for work-related injuries. Illinois Central,
In support of his argument that the actions were not for the same cause, plaintiff relies on Steiner Diamond & Co. v. Flashner Medical Partnership,
In addition, the trial court’s finding that the actions are between the “same parties” for section 2 — 619(a)(3) purposes was not an abuse of discretion. The parties need not be identical. The test is satisfied if the litigants’ interests are sufficiently similar, as they are in the present case. Plaintiffs interests in both actions are sufficiently similar because in both he seeks to avoid liability for allegedly concealing information about Lyphomed’s FDA violations from Fujisawa. Fujisawa’s аnd FUSA’s interests in both actions are also substantially similar because they involve their cause of action against plaintiff and recovering damages from him for committing RICO violations. The fact that the individual defendants, who are officers and directors of Fujisawa and FUSA, are not parties to the federal action does not change the result. See Tambone,
Moreover, we do not find that the trial court abused its discretion by failing to address any of the factors cited in Kellerman — comity, prevention of multiplicity, likelihood of obtaining complete relief in the foreign jurisdiction, or res judicata. Kellerman applied the factors in its review оf a section 2 — 619(a)(3) stay. Subsequent cases have extended the Kellerman factors to apply to section 2 — 619(a)(3) dismissals. The present case involves a dismissal. The trial court articulated that its decision was based in part on “reasons of comity, judicial economy and the efficient overall administration of justice.” Plaintiff argues that the trial court failed to cite the proper factors and performed no analysis. We first note that courts are not required to apply the factors; Kellermаn and its progeny state that courts should, not must, consider them. In addition, several Illinois appellate cases have affirmed section 2 — 619(a)(3) dismissals with no citation to the Kellerman factors or analysis of fewer than all of them. See Doutt,
In the present case, plaintiff contends that “[cjontrary to the Circuit Court’s Order, allowing Kapoor’s suit to proceed would not offend the principle of judicial comity” because the causes of action in the federal and state actions differed and “neither suit infringes upon the other forum’s jurisdiction or judicial decisions.” As we have discussed, the inquiry here does not fоcus on whether the causes of action were identical. The two actions arose out of the same occurrence. Contrary to plaintiffs argument, we do not see how the consideration of comity precludes dismissal of the state action. In addition, dismissal of the state action prevents a multiplicity of actions, as well as any associated vexation and harassment. Plaintiff also contends that dismissal was improper because he would not be able to obtain complete reliеf in the federal action. Plaintiff argues that he could not have brought his state action in the federal action as either a compulsive or a permissive counterclaim. See Fed. R Civ. E 13(a), (b). Even assuming that plaintiff is correct, any such inability to bring the counterclaims is irrelevant for purposes of a section 2 — 619(a)(3) dismissal because the statute is designed to avoid duplicative actions and the central inquiry is “not whether the legal theories or the relief sought materially differs between the two actions.” See Kаtherine M. v. Ryder,
In sum, the trial court did not abuse its discretion in finding that the state and federal actions were for the “same causes” between the “same parties.” The two actions arose out of plaintiffs alleged concealment of Lyphomed’s FDA violations from Fujisawa while it was buying Lyphomed stock and the litigants’ interests in both actions were sufficiently similar. Moreover, the trial court did not abuse its discretion in its application of the Kellerman factors. In light of the foregoing, we affirm the circuit court’s order dismissing plaintiffs state action pursuant to section 2 — 619(a)(3).
Affirmed.
McNULTY, EJ., and RAKOWSKI, J., concur.
Notes
Initially, we note that compliance with Supreme Court Rule 341 (134 Ill. 2d R. 341) is of importance in eveiy appeal. Specifically, Rule 341(e)(6) requires that the statement of facts in the appellant’s brief shall he “stated accurately and fairly without argument or comment, and with appropriate reference to the pages of the record on appeal.” 134 Ill. 2d R. 341(e)(6). Plaintiff disregarded this rule by including arguments, with no citations to the record, in the fact section of his brief such as “certain defendants decided that extorting money from Kapoor would allow them to save face within the organization,” and “[rlather than take the heat for their own mismanagement, defendants decided to deflect internal and public сriticism by falsely blaming Dr. Kapoor for FUSA’s troubles.” This court has held that the supreme court rules are not merely suggestions and that “it is within our discretion to strike [plaintiffs] brief and dismiss the appeal based on violations of these rules. [Citation.]” Geers v. Brichta,
“A proprietary drug is a new patented drug, while generic drugs are versions of patented drugs ordinarily sold after the patent on the proprietary drug expires.” Fujisawa Pharmaceutical Co. v. Kapoor,
Murphy v. Kapoor, No. 89 — C—3265 (N.D. Ill.); Harman v. Lyphomed, Inc., No. 88 — C—0476 (N.D. Ill.)
Kapoor v. Fujisawa Pharmaceutical Co., No. 96C — 06—50 (Del.).
