Free Complaint - District Court of Delaware - Delaware

Case 1:07-cv-00027-GMS

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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF DELAWARE KENEXA TECHNOLOGY, INC., a Pennsylvania Corporation, Plaintiff, v. BLUELINX CORPORATION, a Georgia corporation, Defendant. ) ) ) ) ) ) ) ) ) )

C.A. No. JURY TRIAL DEMANDED

COMPLAINT Parties 1. Plaintiff Kenexa Technology, Inc. ("Kenexa") is a Pennsylvania corporation with a

principal place of business at 650 East Swedesford Road, Second Floor, Wayne, Pennsylvania 19087. 2. Defendant BlueLinx Corporation ("BlueLinx") is a Georgia corporation with a

principal place of business at 4100 Wildwood Parkway, Atlanta, Georgia 30339. Jurisdiction and Venue 3. Jurisdiction is proper pursuant to 28 U.S.C.A. §1332(a)(1) because Kenexa and

BlueLinx are citizens of different states, the amount in controversy exceeds $75,000.00, exclusive of interest and costs, and the parties have consented to the jurisdiction of Delaware. 4. Venue is proper pursuant to 28 U.S.C.A. §1391(a)(3) because Kenexa and BlueLinx

consented to venue in the courts of Delaware.

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Background 5. Kenexa is a provider of employment software, proprietary content, services and

process outsourcing that partners with clients' human resources departments to maximize performance and efficiency. 6. BlueLinx is a distributor of building products, providing products to dealers,

industrial manufacturers, manufactured housing producers, and home improvement retailers nationwide. 7. On or about June 1, 2006, Kenexa and BlueLinx executed a Master Service

Agreement ("Agreement") for Kenexa to provide BlueLinx employment process outsourcing services and related products. A true and correct copy of the Agreement and exhibits thereto is attached hereto as Exhibit "A". Attached as Exhibit "B" are certain pages of the Agreement in a more legible format. 8. 9. The Agreement commenced on June 2, 2006 and was for a five year term. According to the Agreement, BlueLinx was obligated to pay Kenexa $377,852.00

per quarter in year one and $594,734.00 per quarter in years two through five of the Agreement, plus additional fees and expenses. 10. According to the Agreement, BlueLinx was obligated to pay Kenexa for its

services, products and expenses within thirty (30) days of receipt of Kenexa's invoice. 11. Plaintiff Kenexa has invoiced BlueLinx for services rendered and products

delivered pursuant to or in connection with the Agreement. 12. BlueLinx has failed to pay Kenexa numerous invoices that are properly due and

owing. Those invoices include $376,380.85 for a quarterly run rate and 23,500 for development

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of a third career center, one time load of candidate information, creation and set up of daily hire fee and maintenance charges. 13. 14. BlueLinx did not dispute any outstanding invoices as required by the Agreement. According to the Agreement, BlueLinx could terminate the Agreement after thirty

(30) days written notice to Kenexa only for a material default. 15. 16. BlueLinx purportedly terminated the Agreement on November 1, 2006. Kenexa invoked the dispute resolution procedure contained in the Agreement.

BlueLinx refused to engage in any dispute resolution process. Count I (Breach of Contract) 17. 18. Kenexa realleges the above paragraphs as if set forth at length herein. Kenexa and BlueLinx executed the Agreement for Kenexa to provide products and

serves to BlueLinx for sixty (60) months. 19. BlueLinx breached the Agreement when it failed to pay Kenexa for its products and

services according to the Agreement. 20. BlueLinx breached the Agreement when it wrongfully terminated the Agreement

with Kenexa. 21. Kenexa was damaged as a result of BlueLinx's breaches of the Agreement. Count II (Declaratory Judgment) 22. 23. Kenexa realleges the above paragraphs as if set forth at length herein. According to the Agreement, BlueLinx was required to pay Kenexa for a sixty (60)

month period. 24. Kenexa asserts that BlueLinx breached the Agreement, which BlueLinx disputes.

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25.

Kenexa seeks a declaration that BlueLinx breached the Agreement by failing to

object or to pay for services and products and anticipatorily breached the Agreement by untimely and improperly terminating without cause. 26. There exists, therefore, an actual controversy that is subject to determination by

declaratory judgment pursuant to 28 U.S.C.A. §2201. WHEREFORE, Plaintiff Kenexa Technology, Inc. prays for judgment against Defendant BlueLinx Corporation as follows: 1. Damages for breach of the Agreement, including future losses through the term of the Agreement; 2. Interest at the rate of one (1%) percent per month from the date of the breach; 3. Declaratory judgment; 4. Costs and fees, including reasonable attorneys' fees; 5. Pre and post judgment interest; and 6. Any other relief the Court deems appropriate.

SEITZ, VAN OGTROP & GREEN, P.A

/s/ R. Karl Hill R. KARL HILL, ESQ. (DE2747) 222 Delaware Avenue, Suite 1500 P. O. Box 68 Wilmington, DE 19899 (302) 888-0600 Attorneys for Plaintiff

Dated: January 12, 2007

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