Mitсh Nocula is the sole share-holder of two corporations: Tooling Systems International Corp. (“TSI”), an Illinois company that takes orders for the manufacture of tools and dies, and P.Z. Alucón Sp. z o.o. (“Alucón”), a Polish corporation that is one of TSI’s primary subcontractors for the manufacture of the tools and dies. Nocula and TSI claim that UGS Corporation (“UGS”), a Texas-based Delaware corporation that sells computer-aided design software, and UGS Sp. z o.o. (“UGS Poland”), 1 a Polish sublicensee of UGS’s software, intentionally disrupted Alucon’s business by lodging a criminal complaint against it in Poland for theft of intellectual property. In connection with the ensuing prosecution, Polish police seized Alucon’s computers. Although the prosecution ended in a verdict for Alucón, the computers disappeared and Alucon’s engineering data was lost.
Nocula and TSI claim UGS and UGS Poland maliciously instituted the Polish criminal prosecution and used it as lеverage to force the transfer of a license to use UGS’s software from a third-party licensee, Electrode Machining Services (“Electrode”), to Alucón. These actions form the basis of various tort and contract claims asserted in this lawsuit. UGS and UGS Poland moved to dismiss, arguing the claims were barred by the act-of-state doctrine, which generally prohibits federal courts from entertaining claims that would question the validity of the acts of a foreign sovereign under that sovereign’s laws. The district court granted this motion. Nocula, proceeding pro se, filed a timely notice of appeal on his own behalf. After the 30-day appeal clock expired, counsel was retained and filed a “corrected” notice of appeal for Nocula and TSI.
Jurisdictional defects prevent us from addressing most of the claims in this case. The first notice of appeal — signed and filed by “Mitch Nocula, Pro Se” — was ineffective to provide notice of TSI’s appeal; the second notice, naming both Nocula and TSI, was untimely. Accordingly, TSI’s ap
One claim arguably belоnging to Nocula personally pertains to the “wrongful” loss of the computers and engineering data. We say arguably because the amended complaint sometimes describes this as the property of Alucón and at other times asserts the computers and data belonged to Nocula personally. Either way, the district court properly invoked the act-of-state doctrine because the adjudication of this claim would require American courts to question the legality of the seizure and loss of this property during the course of the Polish criminal prosecution. Another claim asserted by Nocula personally is for “harassment,” which is not cognizable under Illinois law.
I. Background
Nocula is the sole owner of TSI, a corporation in the business of soliciting orders for custom-manufactured machine tools and dies. TSI farms out a substantial number of these orders to subcontractors, including Alucón, a Polish company also owned by Nocula. In the early 1990s, Nocula wanted tо use computers to streamline the otherwise complicated and time-consuming process of making tools and dies from prototypes. Nocula teamed up with Charles Hahs Jr. and began to explore the use of computer-aided design (“CAD”) applications in the tool-and-die industry. Hahs was the owner of Electrode, a Florida corporation, which held a license to use certain CAD software made by UGS. Using UGS’s CAD software, Hahs and Nocula began implementing a “virtual shop” at Alucón, Nocula’s Polish company, that allowed tools and dies to be more economically and quickly manufactured.
UGS Poland, a wholly owned subsidiary of UGS responsible for sublicensing UGS’s CAD software and enforcing its intellectual property rights in Poland, filed a criminal complaint in Poland against Alucón and Hahs for illegally using UGS software. This accusation prompted the commencement of a criminal prosecution. Polish police seized all of Alucon’s computers, effectively shutting down its operations. The president of Alucón was arrested, as was Hahs. These disruptions caused Alu-cón to default on purchase orders from TSI, which in turn defaulted on a number of its contracts with its own customers.
Nocula sought to resolve this situation with dispatch. He asked UGS what could be done to get the charges against Alucón dropped and the seized computers returned. Nocula negotiated an agreement with UGS that it would “do everything possible to terminate the criminаl proceedings against Alucón” in exchange for the transfer of Electrode’s UGS software license to Alucón. The license was duly transferred. As a result, Alucón was required to purchase UGS CAD software and updates from UGS Poland.
Nocula contends UGS reneged on the deal by continuing to demand prosecution of Alucón and its personnel, or at least by not making any effort to see that those charges were dropped. Moreover, he claims UGS Poland billed Alucón for software maintenance it did not perform and updates it did not provide. When Alucón refused to pay, UGS Poland sought and won a civil judgment from a Polish court against Alucón and seized its bank accounts. In the meantime, the Polish criminal prosecution ended with a verdict favorable to Alucón. Unfortunately, according to Polish authorities, Alucon’s seized comput
Based on these events, Nocula and TSI filed a diversity suit in federal court in Blinois. Nocula’s claims include malicious prosecution, fraudulent inducement, breach of contract, tortious interference, a claim for the wrongful loss of his property, and harassment. TSI’s claims are for various forms of tortious interference.
UGS and UGS Poland moved to dismiss based on the act-of-state doctrine, and the district court granted the motion. The court held that “any claim based on UGS Poland’s filing, prosecuting, receiving and exeсuting on the civil judgment in Poland is barred by the act of state doctrine” because any claim stemming from that action “would require this court to reverse the Polish court’s decision.” As for any claims touching upon the Polish criminal prosecution, the court concluded that the injuries are “all alleged to stem from the Polish police seizure” of Alucon’s computers, and therefore any attempt to recover would require a showing that the seizure was improper and thus would run afоul of the act-of-state doctrine.
II. Analysis
A. Appellate Jurisdiction Over TSI’s Appeal
We questioned appellate jurisdiction by order issued before briefing commenced in this case; our appellate analysis always begins with the jurisdictional inquiry regardless of whether it is raised by one of the parties.
See Bender v. Williamsport Area Sch. Dist.,
UGS 2 contends we lack jurisdiction over TSI’s claims. No doubt we possess jurisdiction over appeals from final orders in diversity suits, see 28 U.S.C. §§ 1291, 1332, but our focus here is on the particular requirements of Rules 3 and 4 of the Federal Rules of Appellate Procedure concerning the time for filing a notice of appeal and what it must contain. The district court entered its decision and order granting UGS’s motion to dismiss on August 4, 2006, and three days later, on August 7, 2006, entered a minute order terminating the case. Nocula filed his pro se notice of appeal on September 5, 2006, within the 30-day time limit prescribed by Rule 4(a)(1)(A). 3 This notice listed Nocula and TSI in the caption but did not specifically mention TSI in the body of the notice. The notice also misidentified the order appealed from and the appellate court to which the appeal was taken. The body of the notice read:
NOTICE IS HEREBY GIVEN that MITCH NOCULA ef al, Petitioner above-named, hereby appeals to the United States Court of Appeals for the Eighth Circuit from a final order of the Honorable Robert W. Gettleman, Judge of the Northern District Court of Illinois, Eastern Division, denying his petition for writ of habeas corpus, declaratory and injunctive relief, entered in this action on the 4th day of August 2006. (Emphasis added.)
On Septembеr 12, 2006, counsel for No-cula and TSI filed what was denominated a “Corrected Notice of Appeal.” This notice remedied several errors contained in the September 5 notice. The second notice was directed to the correct circuit — the Seventh instead of the originally named Eighth — and the language suggesting that claims for habeas, declaratory, and injunc-tive relief were being appealed was removed (those types of relief had never been sought). Additionally, whereas No-cula had signed the original notice for himself “pro se,” the September 12 notice was signed by an attorney “for Mitch Nocula and Tooling Systems Int’l Corp.”
Regardless of the corrections it contained, the second notice was untimely. Absent a motion to extend under Rule 4(a)(5) — which was not filed in this appeal-amendments to a notice must be made within the time set forth by Rule 4(a)(1).
See Harrison v. Dean Witter Reynolds, Inc.,
A notice of appeal must (1) “specify the party or parties taking the appeal by naming each one in the caption or body of the notice”; (2) designate the judgment from which the appeal originates; and (3) “name the сourt to which the appeal is taken.” Fed. R.App. P. 3(c)(1). The purpose of Rule 3 “is to ensure that the filing provides sufficient notice to other parties and courts.”
Nichols v. Untied States,
The September 5 notice did not mention TSI as an appealing party, either in the body of the noticе or as an appealing party under Nocula’s signature — recall that Nocula signed the notice above the typed designation “Mitch Nocula, Pro Se.” TSI
was
listed in the caption of the notice, and the body of the notice refers to “Mitch Nocula, et al.” But immediately following this is a reference to “Petitioner” — singular — and the notice states that this “petitioner” appeals from “a final order ... denying
his
petition for writ of habeas corpus, declaratory and injunctivе relief.” The use of the singular “Petitioner” and
Noeula and TSI cite a Ninth Circuit case,
Bigelow v. Brady (In re Bigelow),
We are not bound by either Bigelow or D-Beam, but we think this case is closer to D-Beam than Bigelow. Noeula and TSI asserted separаte and distinct claims in this case, and the body of the notice of appeal used the singular “Petitioner” to refer to the appealing party. As in D-Beam, Noeula signed the notice for himself, not “for” or “on behalf of’ TSI. Accordingly, because the September 5 notice of appeal was ambiguous as to TSI, we lack jurisdiction to hear TSI’s appeal.
B. Nocula’s Appeal
The district court granted UGS’s motion to dismiss the case under the act-of-state doctrine. We review the grant of a motion to dismiss de novo.
Christensen v. County of Boone, Ill.,
It is well established that a shareholder generally cannot sue to enforce thе rights of the corporation.
Franchise Tax Bd. of Cal. v. Alcan Aluminium Ltd.,
There are exceptions to the rule against shareholder standing for cases in which corporate management has refused to pursue the action for reasons unrelated to good-faith business judgment, or when the shareholder has suffered a direct, personal injury not derivativе of the corporation’s, or a special contractual duty exists.
See Franchise Tax Bd. of Cal.,
Accordingly, the claimed tort and contract injuries were to Alucon’s interests; as sole shareholder, Nocula lacks standing to sue for redress of the corporation’s injuries. Although the amended complaint alleges these injuries were inflicted on “No-cula and Alucón concurrently in that UGS and UGS Poland knew that Nocula was the owner of Alucón” and that “Nocula was using Alucón in the Virtual Shop Project,” as to Nocula, this states a shareholder injury only. Nocula’s injury as sole shareholder, although indirect, may suffice to satisfy Article III standing, but the prudential rule against shareholder suits for injuries to the corporation precludes him
The district court thought Illinois law might permit Nocula to bring the malicious prosecution claim in his own name even though the Polish prosecution was directed against the corporation only, citing
Caspers v. Chicago Real Estate Board, 58
Ill.App.2d 113,
To the extent Nocula asserts a personal claim for the lost computers and accompanying engineering data, we agree with the district court that it is barred by the act-of-state doctrine. Nocula’s legal theory on this point is unclear; as we have noted, the recognizable claims — for malicious prosecution, fraudulent inducement, breach of contract, and tortious interference — belong to Alucón, and the rule against shareholder standing precludes Nocula from asserting them. The amended complaint alleges only that “UGS and UGS Poland wrongfully seized valuable property belonging to Nocula, deprived him of the use and value of it and are now unable to return it or to cause it to be returned to him.” Actually, the amended complaint is internally inconsistent on the ownership of the computers, claiming both that the computers were the property of Alucón and that they belonged to Nocula personally. Whichever is true, any judicial inquiry into the wrongful loss of the computers implicates the act-of-state doctrine.
The act-of-state doctrine is a judicial rule that “generally forbids an American court to question the act of a foreign sovereign that is lawful under that sovereign’s laws.”
F. & H.R. Farman-Farmaian Consulting Eng’rs Firm v. Harza Eng’g Co.,
The decision of a foreign sovereign to exercise its police power through the enforcement of its criminal laws plainly qualifies as an act of state. Accordingly, we have no trouble concluding that the Polish prosecution of Alucón, which included the seizure of the computers and their subsequent loss, is an act of state for purposes of the doctrine. The seizure of the property was obviously part and parcel of the criminal prosecution. Notwithstanding the amended complaint’s legal claim that “UGS and UGS Poland wrongfully seized” Nocula’s property, the more specific factual allegations make it clear, and Nocula’s brief confirms, that the seizure was conducted by Polish police in connection with the criminal prosecution. The amended complaint further alleges that the “Polish authorities” informed Nocula after the verdict that the сomputers “mysteriously disappeared.” To the extent the subsequent loss of the computers was wrongful (i.e., negligent), the loss is attributable to the Polish government, not UGS. Accordingly, any personal claim by Nocula seeking to hold UGS liable for the wrongful loss of the computers would necessarily call for an inquiry into the acts of a foreign sovereign and is barred by the act-of-state doctrine.
Finally, Nocula alleges UGS “deliberately, tortiously and maliciously harassed” him with threats of prosecution for trespass and “other offenses.” There is no harassment tort under Illinois law, though harassment may be a component of a claim for intentional infliction of emotional distress.
See Brackett v. Galesburg Clinic Ass’n,
For the foregoing reasons, TSI’s appeal is dismissed for lack of appellate jurisdiction. Nocula’s malicious prosecution, fraudulent inducement, breach-of-contract, and tortious interference claims are dismissed for lack of standing pursuant to the rule against shareholder standing. Nocu-la’s claim for the wrongful loss of his property is barred by the act-of-state doctrine, and his harassment claim fails to state a cognizable claim for relief.
Dismissed in PART, AffiRmed in part.
Notes
. “Sp. z o.o.” (Spolka Z Ograniczona Odpow-iedzialnoscia) designates a Polish limited company.
. For simplicity's sake, we will refer to UGS and UGS Poland as "UGS.”
. Rule 4(a)(1)(A) of the Federal rules of Appellate Procedure states:
"In a civil case, ... the notice of appeal ... must be filed with the district clerk within 30 days after the judgment or order appealed from is entered.”
. References to the wrong circuit court and nonexistent claims were obvious errors that could not have led to confusion or ambiguity in the notice.
See United States v. Musa,
. Moreover, we note that in Illinois, as in other states, an agreement of this sort is likely unenforceable because the consideration-consisting of a promise to try to stop a criminal prosecution-is against public policy.
See Griner v. Griner,
. We note that Illinois law disfavors actions for malicious prosecution on policy grounds because of the strong public interest in reporting possible crimes.
See Allen v. Berger,
