Autobidmaster LLC v. Temnikov

CourtDistrict Court, W.D. Washington
DecidedMay 12, 2021
Docket3:20-cv-06181
StatusUnknown

This text of Autobidmaster LLC v. Temnikov (Autobidmaster LLC v. Temnikov) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Autobidmaster LLC v. Temnikov, (W.D. Wash. 2021).

Opinion

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5 UNITED STATES DISTRICT COURT 6 WESTERN DISTRICT OF WASHINGTON AT TACOMA 7 AUTOBIDMASTER LLC, CASE NO. C20-6181 BHS 8 Plaintiff, ORDER 9 v. 10 ANTON MARTYSHENKO, et al., 11 Defendants. 12

13 THIS MATTER is before the Court on Defendants Aleksandr Temnikov, Denys 14 Parkhomenko, Sergii Marchuk, and Anton Martyshenko’s motion to dismiss for lack of 15 personal jurisdiction and for forum non conveniens, Dkt. 6, and on Plaintiff 16 Autobidmaster LLC’s motion to remand, Dkt. 13. 17 Autobidmaster is a Portland, Oregon entity selling used and salvaged vehicles 18 through online auctions, in the United States and internationally. Dkt. 1-2 at 1 19 (Complaint). Defendants are Ukrainian citizens who formerly worked as independent 20 contractors for Autobidmaster in Kiev, Ukraine. Id. at 2. The relationship was governed 21 by two contracts, each drafted by Autobidmaster. They included slightly different forum 22 selection clauses, though each contemplated three different forums. The Independent 1 Contractor Agreement’s (“ICA”) forum selection clause provided for jurisdiction and 2 venue in state or federal courts “in and for” Clark County, Washington or in Kiev 3 Ukraine:

4 Jurisdiction; Venue; No Jury Trial. The parties hereby agree that [Defendants] ha[ve] minimum contacts sufficient to subject [Defendants] to 5 personal jurisdiction in the State of Washington. As such, the parties agree that any and all claims arising from or in connection with this Agreement 6 must be brought in either the state or federal courts in and for Clark County, Washington, and the parties hereby expressly waive any venue 7 privileges which may be asserted in connection with this Agreement, except that Company reserves the right to litigate under this Agreement in 8 either Clark County, Washington USA or Kiev, Ukraine, at Company’s election. In any proceeding arising out of this Agreement, the prevailing 9 party shall be entitled to recover reasonable attorney fees and costs, including those incurred on appeal, including an allowance of Three 10 Hundred Dollars ($300) per hours for the use of in-house counsel. IN ANY LAWSUIT BROUGHT BY OR AGAINST INDEPENDENT 11 CONTRACTOR IN CONNECTION WITH THIS AGREEMENT, INDEPENDENT CONTRACTOR WAIVES THE RIGHT TO A JURY 12 TRIAL 13 Dkt. 1-3 at 28 (ICA) (bolded emphasis added). The “Confidentiality, Non-Compete and 14 Non-Solicitation Agreement” (“NCA”), which Autobidmaster claims Defendants 15 breached, expressly contemplates litigation in the federal court “serving Clark County”: 16 Jurisdiction; Venue; No Jury Trial. This Agreement shall be deemed to have been made in the State of Washington. This Agreement shall be 17 governed by the laws of the State of Washington, and all actions brought hereunder whether at law or in equity shall be brought in the state or 18 federal courts serving Clark County, Washington except that Company reserves the right to litigate under this Agreement in either Clark County, 19 Washington, USA or Kiev, Ukraine, at Company’s election. IN ANY LAWSUIT BROUGHT BY OR AGAINST INDEPENDENT 20 CONTRACTOR IN CONNECTION WITH THIS AGREEMENT, INDEPENDENT CONTRACTOR WAIVES THE RIGHT TO A JURY 21 TRIAL. 22 1 Id. at 55 (bolded emphasis added). Autobidmaster alleges Defendants breached these 2 agreements by appropriating Autobidmaster’s protected business information and 3 systems to compete with it in Ukraine. See Dkt. 1-2 at 2–6. It sued Defendants in Clark

4 County Superior Court. Dkt. 1-2. Defendants timely removed the case here, invoking the 5 Court’s diversity jurisdiction pursuant to 28 U.S.C § 1332. Dkt. 1 (Notice of Removal). 6 Autobidmaster now moves to remand to Clark County Superior Court. Dkt. 13. It 7 concedes the Court has diversity jurisdiction but argues that the Court should use its 8 inherent authority to remand because the forum selection clauses require this dispute to

9 be heard in Clark County Superior Court. Id. at 5. 10 Defendants move to dismiss for lack of personal jurisdiction and forum non 11 conveniens. Dkt. 6 (Motion to Dismiss). They argue that the forum selection clauses (and 12 the contracts containing them) are unenforceable and that this Court lacks personal 13 jurisdiction over them. Id. Even if the forum selection clauses are enforceable, they argue

14 this is not the appropriate forum for this case. Id. They live and worked for 15 Autobidmaster in Ukraine, Autobidmaster does business there, the contracts were formed 16 and allegedly breached there, all the witnesses and evidence are there, and the forum 17 selection clauses expressly identify Ukraine as an appropriate forum. Id. Washington, on 18 the other hand, has no connection to the parties or their dispute.

19 For the following reasons, Autobidmaster’s motion to remand is DENIED, and 20 Defendants’ motion to dismiss for forum non conveniens is GRANTED. Defendants’ 21 motion to dismiss lack of personal jurisdiction is DENIED as moot. 22 1 I. DISCUSSION 2 A. Plaintiff’s Motion to Remand is DENIED. 3 Autobidmaster concedes that the Court has diversity jurisdiction over the case but

4 asks the Court to enforce what it claims are binding forum selection clauses requiring 5 litigation in Clark County Superior Court. 6 “Even if a Court has subject matter jurisdiction over a suit that has been removed, 7 a suit may be remanded based on a forum selection clause.” Bastami v. Semiconductor 8 Components Indus., LLC, No. 17-CV-00407-LHK, 2017 WL 1354148, at *2 (N.D. Cal.

9 Apr. 13, 2017) (citing Kamm v. ITEX Corp., 568 F.3d 752, 756 (9th Cir. 2009) (“[A] 10 forum selection clause is similar to other grounds for not exercising jurisdiction over a 11 case, such as abstention in favor of state court jurisdiction under Younger v. Harris, 401 12 U.S. 37 (1971), and related abstention cases, or a refusal to exercise supplemental 13 jurisdiction and a resulting remand to state court under 28 U.S.C. § 1367(c)[.]”)). “A

14 court has inherent authority to remand an action to state court to enforce a forum 15 selection clause.” QSR Mgmt., Inc. v. Dunkin Brands, Inc., No. EDCV 08–0003–VAP 16 (OPx), 2008 WL 2856456, at *1 (C.D. Cal. Mar. 23, 2008). 17 Autobidmaster argues that Clark County Superior Court is the exclusive forum 18 because the forum selection clauses require litigation in a court physically located within

19 Clark County, and no federal court is physically located there. Dkt. 27 at 2 (citing City of 20 Albany v. CH2M Hill, Inc., 924 F.3d 1306, 1308 (9th Cir. 2019)). It also argues that 21 litigation must occur in Clark County because it has the exclusive right under the forum 22 selection clauses to elect to litigate “in either Clark County, Washington, USA or Kiev, 1 Ukraine.” Dkt. 13 at 5. Autobidmaster contends that even if Clark County Superior Court 2 is not the exclusive forum, removal was improper because Defendants contractually 3 waived the right of removal, by “waiving venue privileges.” Id. at 6. Defendants respond

4 that the forum selection clauses expressly permit litigation in either federal or state courts 5 serving or for Clark County.1 Dkt. 27 at 5. 6 Forum selection clauses may be either permissive or mandatory, but only the latter 7 category will be enforced. See Docksider, Ltd. v. Sea Tech., Ltd., 875 F.2d 762, 764 (9th 8 Cir. 1989). To be mandatory, a forum selection clause must contain mandatory language

9 that specifies a venue or clearly designates a forum as the exclusive one. N. Cal. Dist. 10 Council of Laborers v. Pittsburg-Des Moines Steel Co., 69 F.3d 1034, 1037 (9th Cir.

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Autobidmaster LLC v. Temnikov, Counsel Stack Legal Research, https://law.counselstack.com/opinion/autobidmaster-llc-v-temnikov-wawd-2021.