EZLinks, LLC v. PCMS Datafit, Inc.

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE EZLINKS GOLF, LLC, Plaintiff, v. C.A. N0. Nl6C-07-080 PRW CCLD PCMS DATAFIT, INC. Defendant. Submitted: December 16, 2016 Decided: March 13, 2017 Corrected: March 21, 2017 MEMORANDUM OPINION AN]) ORDER Upon Defendant PCMS Datafz`t, Inc. ’S Partial Motion to Dismiss, GRANTED. Stuart Brown, Esquire, Laura D. Hatcher, Esquire, DLA Piper LLP (US), Wilmington, Delaware, Jeffrey S. Torosian, Esquire (pro hac vice) (argued), Eric Roberts, Esquire (pro hac vice), DLA Piper LLP (US), Chicago, Illinois, Attorneys for EZLinkS Golf, LLC. William D. Johnston, Esquire, Kathaleen St. J. McCormick, Esquire, Mary F. Dugan, Esquire, Meryem Y. Dede, Esquire, Young Conaway Stargatt & Taylor, LLP, Wilmington, Delaware, Krista S. Schwartz, Esquire (pro hac vice), Jones Day, San Francisco, California, Margaret C. Gleason, Esquire (pro hac vice) (argued), Jennifer W. FitzGerald, Esquire (pro hac vice), Jones Day, Pittsburgh, Pennsylvania, Attorneys for PCMS Dataflt, Inc. WALLACE, J. I. INTRODUCTION Plaintiff EZLinks Golf, LLC (“EZLinks”) filed this lawsuit against Defendant PCMS Datafit, Inc. (“PCMS”). EZLinks alleges PCMS fraudulently induced EZLinks into entering a Reseller Agreement and then breached that Reseller Agreement. Before the Court is PCMS’s Partial Motion to Dismiss. PCMS asserts that EZLinks’s fraudulent-inducement claim rehashes its breach-of-contract claim. PCMS argues that Delaware law prohibits a party from recomposing a quintessential contract claim as a fraud claim. Because EZLinks’s claims of fraudulent-inducement and breach-of-contract, though sufficiently distinct, have identical damages allegations, the Court GRANTS PCMS’s Partial Motion to Dismiss. II. FACTUAL AND PROCEDURAL BACKGROUND In late 2013, EZLinks, through a third party, solicited a Request for Proposals (“RFP”) from various companies for a new Point-of-Sale (“POS”) system.l In mid-January 2014, PCMS responded (the “PCMS Proposal”). EZLinks thoroughly reviewed the PCMS Proposal, and the parties began a working relationship2 The parties first made direct contact on February l4, 2014.3 ' Pl.’s Compl. 1111 7-9. 2 Pl.’s Compl. at 1 15. And a phone conference followed on February 18, 2014.4 EZLinks contends PCMS representatives stated then that “their point-of-sale solution could handle ‘remote printing.”’5 PCMS provided EZlinks with sales demonstrations of PCMS’s proposed POS system on March 6 and l3, 2014.6 On March 18, 2014, several of EZLinks’s directors had a technical meeting with PCMS to discuss the POS’s specifics.7 The parties had further meetings on April 22, April 30, and May 28, 2014.8 The parties’ CEOS met on August l, 2014. There, PCMS’s CEO made the following statements: (l) PCMS could complete the project for the POS system to meet EZLinks’s current customer demands within Seven months, with “Phase 0” completed by November 2014, “Phase l” completed by January 5, 2015, and “Phase 2” completed by March 2015; and (2) PCMS could complete the project for the POS System to meet EZLinks’s current customer demands on a budget of $1.4 million.9 Pl.’s Compl. at 11 l6. Pl.’s Compl. at 11 16. 5 Pl.’s Compl. at 1 l6. 6 Pl.’s Compl. at 11 l7. Pl.’s Compl. at 11 18. Pl.’s Compl. at ‘1] 19. 9 Pl.’S Compl. at\lZl. EZLinks now contends that PCMS made these statements to fraudulently induce EZLinl