Cal-State Business Products & Services, Inc. v. Ricoh

12 Cal. App. 4th 1666, 16 Cal. Rptr. 2d 417, 93 Cal. Daily Op. Serv. 934, 1993 Cal. App. LEXIS 109
CourtCalifornia Court of Appeal
DecidedJanuary 14, 1993
DocketC013313
StatusPublished
Cited by84 cases

This text of 12 Cal. App. 4th 1666 (Cal-State Business Products & Services, Inc. v. Ricoh) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cal-State Business Products & Services, Inc. v. Ricoh, 12 Cal. App. 4th 1666, 16 Cal. Rptr. 2d 417, 93 Cal. Daily Op. Serv. 934, 1993 Cal. App. LEXIS 109 (Cal. Ct. App. 1993).

Opinion

Opinion

DAVIS, J.

Introduction

As we explain more fully in the course of this opinion, Code of Civil Procedure sections 410.30 and 418.10 (undesignated section references will be to this code) are the means by which a defendant may challenge a plaintiffs selection of California as the forum for the litigation between them. Two substantive bodies of law are affected by this procedural vehicle: the traditional (or noncontractual) doctrine of forum non conveniens and the enforceability of contractual forum-selection clauses. In light of the fact the appellant has fused aspects of these related but disinct areas, we are called upon to delineate the relevant criteria of each, to explain that this is not the proper context for application of traditional forum non conveniens principles, and to determine that a contractual forum-selection clause put in issue by the case before us is enforceable.

*1671 In response to the complaint filed by plaintiff Cal-State Business Products & Services, Inc. (Cal-State), defendant “Ricoh” 1 moved for an order staying or dismissing this action as being brought in an inconvenient forum. (§§410.30, 418.10.) The basis of the motion is forum-selection clauses contained in contracts between Ricoh and Cal-State which designate New York as the proper forum for any litigation connected with the contracts. The trial court ruled the action was “best decided” in New York and issued a stay pending the resolution of a suit brought by Ricoh in a New York federal court. We shall affirm. 2

Background

Both parties filed declarations and exhibits in the trial court in connection with the motion. We draw our facts from these sources.

John Fisher is the president, director, and principal shareholder of Cal-State. He has extensive knowledge of the business practices in the office machine industry based on 22 years of experience in the field. He has a great deal of familiarity with the operations of Ricoh in particular, having been one of its dealers from 1981 to 1983 and its director of dealer sales for the western United States from 1987 to 1988. His primary responsibility in the latter position was negotiating and authorizing hundreds of new dealer contracts, and he had input in the wording of the contracts. As he stated to Ricoh in a 1990 letter, “I am extremely familiar with the Ricoh dealer contract.”

According to Mr. Fisher, Ricoh offers two product lines, office machines (i.e., photocopiers) and facsimile machines (fax) and assigns specific territories to dealers. In contracting with dealers, Ricoh executes separate contracts for each product line in a territory. Mr. Fisher also asserted Ricoh had *1672 an informal practice of granting de facto “exclusive” dealerships for “preferred” dealers in certain territories, which was accomplished by refusing to renew the contracts of other dealerships in the territory as they expired.

After Mr. Fisher left Ricoh, he founded Cal-State in December 1989. Although it is disputed who initially solicited whom, he filed a dealership application for the Stockton branch of his business in February 1990. He claimed he did so only because he was promised by various Ricoh representatives that he would ultimately be given a dealership in Sacramento and an exclusive dealership in Stockton upon the expiration of another dealer’s contract. In any event, he signed standard contracts for both product lines for a several-county territory (generally referred to as the Stockton territory) on March 7, 1990, which expired June 30, 1990. The contracts contained identical integration 3 and choice-of-law/forum clauses 4 among the “General Provisions.” The contracts explicitly noted the territory was not exclusive. Jim Ivy, Ricoh’s senior vice-president of marketing, approved and signed the contracts at the corporate headquarters in New Jersey on March 22.

In August 1990, a Ricoh manager sent Mr. Fisher a letter reminding him that “with the upcoming authorization of Cal-State in Sacramento on October 1st, it is important you have the proper inventory to support that marketplace.” Mr. Fisher ordered “a large amount of [Ricoh] machines on credit.”

Subsequently, Messrs. Fisher and Ivy executed contracts for fax dealerships in the Stockton and Sacramento territories (the latter also embracing several counties from Solano to the foothills) and an office machine dealership in the Stockton territory. These were to be in effect until March 31, 1992. Again, both contracts expressly noted the territories were nonexclusive. Both contracts contained integration 5 and choice-of-law/forum *1673 clauses 6 identical to the previous contracts. Mr. Fisher signed them in California in October 1990, and Mr. Ivy signed in New Jersey in November 1990.

In late October 1990, Mr. Fisher received a letter from the Ricoh manager assuring him “You are correct that you were promised to be authorized in Sacramento for both copiers and facsimile units no later than October 1st. However, since you worked for Ricoh you understand that we must give a dealer written notification before authorizing another dealer in their territory. We are now going through that process, [f] Please be patient. Now that you are authorized for fax [y]ou can spend the next two months getting a fast start with that product line. I have been assured by [other Ricoh executives] there will be no problems getting you authorized on January 1, 1991.” He received a similar letter from defendant Sasaki dated November 30, 1990, stating “we need some more time to determine the application [jic] of adding another copier dealer in this territory because of our committment [ízc] to the other party.”

It is not exactly clear what specifically took place over the course of the next year. Mr. Fisher simply points out he never received an office machine dealership in the Sacramento territory or an exclusive dealership in the Stockton territory. Mr. Ivy states only that Mr. Fisher did not pay for the machines he received on credit and currently owes $477,000 (rounded). In any event, Cal-State filed its original complaint against Ricoh in September 1991 in Sacramento County Superior Court. As amended, the complaint alleged six causes of action: restraint of trade (premised on the facts we have just described), unfair trade practices (this involved only below-cost pricing by the Millers and their business entity, California Copy), breach of contract (both oral and written), two types of fraud (the representations he would receive an exclusive Stockton dealership and a copier dealership in Sacramento), and two species of negligent misrepresentation (the same promises made with a less culpable state of mind). The motion to stay/dismiss followed in December 1991.

jn hjs declaration in opposition to the motion, Mr. Fisher asserted he was not aware of the choice-of-forum provision, and it was never *1674

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12 Cal. App. 4th 1666, 16 Cal. Rptr. 2d 417, 93 Cal. Daily Op. Serv. 934, 1993 Cal. App. LEXIS 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cal-state-business-products-services-inc-v-ricoh-calctapp-1993.