Blanchard v. PSPT Ltd.

CourtDistrict Court, D. New Hampshire
DecidedMay 18, 1995
DocketCV-92-660-SD
StatusPublished

This text of Blanchard v. PSPT Ltd. (Blanchard v. PSPT Ltd.) is published on Counsel Stack Legal Research, covering District Court, D. New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blanchard v. PSPT Ltd., (D.N.H. 1995).

Opinion

Blanchard v. PSPT Ltd. CV-92-660-SD 05/18/95 UNITED STATES DISTRICT COURT FOR THE

DISTRICT OF NEW HAMPSHIRE

Zane S. Blanchard & Company, Inc.

v. Civil No. 92-660-SD

PSPT Ltd.

O R D E R

In this diversity action, plaintiff Zane S. Blanchard & Co.

Inc. (ZSB), a New Hampshire corporation engaged in the business

of representing manufacturers in the marketing and sale of heavy

eguipment, alleges claims for breach of contract against

defendant PSPT Ltd., a foreign corporation organized under the

laws of Israel and engaged in the business of manufacturing pape

cutting machines. PSPT is not registered with the New Hampshire

Secretary of State to do business in New Hampshire.

Presently before the court is PSPT's motion to dismiss for

forum non conveniens, to which ZSB has timely objected.1 In the

alternative of dismissal, PSPT moves for a Rule 26(c), Fed. R.

Civ. P., protective order to prevent the depositions of PSPT and

1In addition to the motion and objection, the parties have further supplemented their respective arguments with reply memoranda, which the court has reviewed and considered prior to making today's rulings. PSPT's general manager from taking place in New Hampshire. ZSB

objects to this form of relief as well.

Background

Plaintiff alleges that in 1986 it entered into a written

contract with Handasat Defus Ltd., d/b/a PSP Ltd., for the

marketing and sale of paper making and converting eguipment.

Plaintiff further alleges that in June 1991 it received a call

from the managing director of Blades Technology Ltd., who

informed ZSB that it intended to acguire PSP and change its name

to PSPT.2 In July 1991, ZSB President Stephen Dumont traveled to

Israel to meet with representatives of Blades and further discuss

their relationship.

In Count I of its complaint, plaintiff alleges,

11. Because of the large amount of back commissions due, however, ZSB was reluctant to continue the relationship with PSP/PSPT. 12. Blades told ZSB that the lather's willingness to participate would be the deciding factor in Blades' decision to take

2Blades subseguently followed through with the acguisition of PSP, now PSPT. PSPT thus became part of the "Wertheimer Group" of companies, which includes Blades as well as another company called Iscar, Ltd. The Wertheimer Group is Israel's "largest privately owned group of metalworking industries," PSPT Backstand promotional literature (attached to Plaintiff's Memorandum as Exhibit A ) , and posts sales exceeding $300 million annually. PSPT itself has " [m]ore than 100 customers worldwide" and has "exported machines to more than 20 countries," including the United States and Canada. Id.

2 over PSP. 13. In consideration of Blades' promise to pay the back commissions due to ZSB, ZSB agreed to continue to represent PSPT in the sale of its eguipment in North America. 14. To date, ZSB has performed all of the terms and conditions of the agreement with PSPT by continuing to represent PSPT in the sale of its eguipment in North America. 15. PSPT has not performed its part of the agreement in that it has failed to pay the back commissions due and owing to ZSB. 16. By reason of PSPT's breach, ZSB has suffered damages in the amount of $195, 677.00 .

Complaint $[$[ 11-16 (emphasis added) .

In Count II plaintiff seeks recovery from PSPT as "a 'mere

continuation' of PSP," id. at I 18, for PSPT's "liabilities and

obligations as the successor to PSP, including payment of the

commissions due and owing to ZSB," id. at I 19. Plaintiff

contends that "PSPT's obligation stems not from an assumption of

[the] ZSB-PSP Sales Agreement, but from its legal responsibility

to pay for liabilities and obligations incurred by its

predecessor." Plaintiff's October 20, 1993, Memorandum at 13.3

PSPT denies its status as a "mere continuation" of Handasat Defus

3The court notes that plaintiff does not allege that the May 11, 1986, contract was assigned to PSPT. Rather, plaintiff asserts that "[d]espite the fact that ZSB and PSPT did not sign a written contract, the parties continued to do business together and PSPT continued to utilize [ZSB] as its exclusive North America representative. At all times, the terms of this agreement between ZSB and PSPT were governed by the promises made by PSPT to Mr. Dumont, including the payment of overdue commissions." Plaintiff's Memorandum at 6.

3 Ltd., and asserts that it will show these two companies are

actually two separate corporate entities. Defendant's Memorandum

at 2-3.

Discussion

1. Forum Non Conveniens

Under the federal doctrine of forum non conveniens,

"when an alternative forum has jurisdiction to hear [a] case, and when trial in the chosen forum would 'establish . . . oppressiveness and vexation to a defendant . . . out of all proportion to plaintiff's convenience,' or when the 'chosen forum [is] inappropriate because of considerations affecting the court's own administrative and legal problems,' the court may, in the exercise of sound discretion, dismiss the case," even if jurisdiction and proper venue are established.

American Dredging Co. v. Miller, U.S. , , 114 S. C t .

981, 985 (1994) (guoting Piper Aircraft Co. v. Revno, 454 U.S.

235, 241 (1981) (guoting Roster v. (American) Lumbermens Mut.

Casualty C o ., 330 U.S. 518, 524 (1947))); see also Mercier v.

Sheraton Int'l, Inc., 981 F.2d 1345, 1349 (1st Cir. 1992)

[Mercier III ("The doctrine of forum non conveniens permits

discretionary dismissals on a 'case by case' basis . . . where an

alternative forum is available in another nation which is fair to

the parties and substantially more convenient for them or the

courts..") (emphasis added) (citations omitted), cert, denied, ___

4 U.S. ___, 113 S. Ct. 2346 (1993).

In making a forum non conveniens determination, the First

Circuit follows the paradigm established by the Supreme Court in

Gulf Oil Corp. v. Gilbert, 330 U.S. 501 (1947), and its progeny.

See e.g., Mercier II, supra, 981 F.2d at 1349-58; Howe v.

Goldcorp. Invs., Ltd., 946 F.2d 944, 950-53 (1st Cir. 1991),

cert, denied, 502 U.S. 1095 (1992); Mercier v. Sheraton Int'l,

Inc., 935 F.2d 419, 423-30 (1st Cir. 1991) [Mercier I1.

Recognizing that "the plaintiff's choice of forum should rarely

be disturbed,". Gulf Oil, supra, 330 U.S. at 508, the Circuit

imposes on the movant "the burden of proving both the

availability of an adeguate alternative forum . . . and the

likelihood of serious unfairness to the parties in the absence of

a transfer to the alternative forum." Mercier II, supra, 981

F.2d at 1349 (citing, inter alia. Tramp Oil & Marine, Ltd. v. M/V

Mermaid I, 743 F.2d 48, 50 (1st Cir. 1984), and Roster, supra,

330 U.S. at 524).

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