DocMagic Sues Ellie Mae, Alleging Anti-Trust Violations

Posted by Orb Staff on August 31, 2009 No Comments
Categories : Residential Mortgage

DocMagic Inc. has filed a lawsuit in U.S. Northern District Court in San Francisco against former ePASS and Reseller partner Ellie Mae for antitrust violations, intentional interference with contractual relationships, interference with prospective economic advantage and unfair competition.

DocMagic has also announced that it filed a lawsuit seeking a permanent injunction against Ellie Mae in San Francisco Superior Court, alleging that Ellie Mae misused DocMagic's intellectual property in the Ellie Mae Docs system.

The antitrust suit alleges that DocMagic was provided access to the ePASS network until Ellie Mae notified DocMagic of its intent to terminate its ePASS Agreement and subsequently took "drastic steps" to prevent its users from accessing DocMagic products. DocMagic accuses Ellie Mae of sabotaging clients from accessing DocMagic altogether through alternative Web service calls.

The complaint for injunctive relief filed simultaneously by DocMagic is based on Ellie Mae's unauthorized use of DocMagic's user interface, workflow, terminology and overall look and feel in Ellie Mae's own document system, DocMagic says.

‘This conduct has far-reaching implications for settlement service providers in general," says Dominic Iannitti, DocMagic's CEO. "Forcing service providers to either agree to pay whatever Ellie Mae demands for the privilege of ePASS inclusion, tolerate intellectual property infringement and require its LOS customers and their borrowers to use only ePASS providers is a pattern of practice that our industry doesn't have room for, especially now."

Ellie Mae's public relations department could not be reached for comment.

SOURCE: DocMagic

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