Centro Veterinario y Agricola Limitada v. Aquatic Life Sciences Inc

CourtDistrict Court, W.D. Washington
DecidedJune 16, 2023
Docket2:23-cv-00693
StatusUnknown

This text of Centro Veterinario y Agricola Limitada v. Aquatic Life Sciences Inc (Centro Veterinario y Agricola Limitada v. Aquatic Life Sciences Inc) 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
Centro Veterinario y Agricola Limitada v. Aquatic Life Sciences Inc, (W.D. Wash. 2023).

Opinion

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5 6 7 UNITED STATES DISTRICT COURT 8 WESTERN DISTRICT OF WASHINGTON AT SEATTLE 9 10 CENTRO VETERINARIO Y AGRICOLA CASE NO. 2:23-cv-00693-LK 11 LIMITADA, ORDER GRANTING MOTION TO 12 Plaintiff, DISMISS v. 13 AQUATIC LIFE SCIENCES, INC., 14 Defendant. 15 16 This matter comes before the Court on a motion to dismiss filed by Defendant Aquatic Life 17 Sciences, Inc., doing business as Syndel (“Syndel”). Dkt. No. 17. Syndel argues that the forum 18 selection clause in its contract with Plaintiff Centro Veterinario y Agricola Limitada, doing 19 business as Centrovet Laboratories, Inc. (“Centrovet”), requires that this case be heard in the state 20 courts in Whatcom County, Washington. The Court agrees and grants the motion to dismiss. 21 Because this case belongs in another forum, the Court denies Centrovet’s motion for a temporary 22 restraining order without prejudice. Dkt. No. 11. 23

24 1 I. BACKGROUND 2 Centrovet is a Chilean corporation that entered into a contract with Syndel, a Washington 3 corporation, in 2013. Dkt. No. 1 at 2; Dkt. No. 1-1 at 2–19 (the parties’ agreement). In 2021, the 4 parties extended the contract’s term until 2030 with its other terms “remain[ing] in full force and

5 effect.” Dkt. No 1-3 at 2. 6 The parties’ contract appointed Centrovet as the distributor of various Syndel products, 7 including the product at issue in this case, Parasite S or Aqualife Formalina product (“Parasite S”). 8 Dkt. No. 1 at 2; Dkt. No. 1-1 at 2–3, 16. Parasite S is “a parasiticide for the control of external 9 parasites on both fish and fish eggs.” Dkt. No. 11 at 7. 10 On May 11, 2023, Centrovet filed suit against Syndel in this Court, asserting claims for 11 breach of contract, breach of the implied duty of good faith and fair dealing, unjust enrichment, 12 and declaratory judgment. Dkt. No. 1 at 7–11. Centrovet avers that Syndel violated the parties’ 13 contract by delaying in applying for renewal of permission to use Parasite S from Directemar, the 14 “Chilean organization responsible for preserving the aquatic environment and marine natural

15 resources in Chile.” Id. at 3. Centrovet contends that Syndel “deliberately sat on its hands” and 16 delayed the application so Directemar would deny it, and Syndel could then “replace Centrovet 17 with a local distributor for whom Syndel could charge a higher price for Parasite S.” Id. at 3–4. 18 As relevant here, the “Applicable Law and Jurisdiction” section of the contract provides as 19 follows: 20 This Agreement shall be construed and interpreted in accordance with the laws of Washington State USA. 21 In case of a dispute which cannot be solved amicably, the Parties agree that only 22 the courts of Washington State, Whatcom County USA will be competent for settlement of the dispute. 23 Dkt. No. 1-1 at 15. 24 1 On June 7, 2023, Centrovet filed an emergency motion for temporary restraining order and 2 preliminary injunction. Dkt. No. 11. The same day, Syndel filed a motion to dismiss based on the 3 contract’s forum selection clause. Dkt. No. 12. Because Syndel’s motion did not contain the 4 required certification that it made a meaningful effort to confer with Centrovet before filing its

5 dispositive motion as required by the Court’s Standing Order for All Civil Cases, Dkt. No. 6 at 6, 6 the Court ordered Syndel to show cause why its motion to dismiss should not be stricken. The 7 Court also issued a briefing schedule for the motion for a TRO and motion to dismiss (if it was not 8 stricken). Dkt. No. 14. On June 8, 2023, Syndel withdrew its motion to dismiss, met and conferred 9 with Centrovet’s counsel, and filed a renewed motion to dismiss on the same day. Dkt. No. 17; 10 Dkt. No. 18 at 5–6. 11 On June 9, 2023, Centrovet filed what is described as its “preliminary response” to 12 Syndel’s motion to dismiss. Dkt. No. 19 at 2. Based on Centrovet’s implication that it needed 13 additional time to respond to the motion, the Court allowed it to file a supplemental brief by June 14 12, 2023. See June 9, 2023 Minute Entry.1 Centrovet timely filed its supplemental response to the

15 motion to dismiss, Dkt. No. 23, and Syndel filed its reply, Dkt. No. 27. Briefing on both 16 Centrovet’s motion for a TRO and Syndel’s motion to dismiss was complete on June 13, 2023. 17 II. DISCUSSION 18 Diversity jurisdiction exists because Centrovet is a citizen of a foreign state (Chile), Syndel 19 is a Washington corporation, and the complaint reasonably alleges that the amount in controversy 20 exceeds $75,000. Dkt. No. 1 at 2; 28 U.S.C. § 1332(a)(2). However, as explained below, just 21 because the Court has jurisdiction does not mean that the case belongs before this Court. See Atl. 22

23 1 The Court rejects Centrovet’s contention that it should be allowed to have until June 26, 2023 to respond to Syndel’s motion to dismiss. Dkt. No. 19 at 5. Centrovet filed its motion for a TRO claiming that it requires emergency relief, 24 Dkt. No. 11, so the Court will not delay its determination of the proper forum. 1 Marine Constr. Co. v. United States Dist. Ct., 571 U.S. 49, 59 (2013) (explaining that a court may 2 enforce a forum selection clause even if venue is not wrong or improper). 3 A. The Parties Agreed to Litigate in the State Courts in Whatcom County 4 The parties hotly dispute the meaning of their contract’s forum selection clause. Syndel

5 argues that the agreement to litigate “only” in the courts “of Washington State, Whatcom County 6 USA” evinces an intent to litigate exclusively in the state courts of Whatcom County. Dkt. No. 17 7 at 6. Centrovet counters that the clause covers all courts pertaining to Whatcom County, including 8 this court that “serves as the federal trial court for Whatcom County.” Dkt. No. 1 at 2; Dkt. No. 19 9 at 8–9.2 10 Federal law governs the interpretation of a forum selection clause in a diversity case. 11 Manetti-Farrow, Inc. v. Gucci Am., Inc., 858 F.2d 509, 513 (9th Cir. 1988). “[A] valid forum- 12 selection clause should be given controlling weight in all but the most exceptional cases.” Atl. 13 Marine, 571 U.S. at 63. To interpret a forum selection clause, the Court looks “to general principles 14 for interpreting contracts.” Sun v. Advanced China Healthcare, Inc., 901 F.3d 1081, 1086 (9th Cir.

15 2018) (cleaned up). “Contract terms are to be given their ordinary meaning, and when the terms of 16 a contract are clear, the intent of the parties must be ascertained from the contract itself.” Klamath 17 Water Users Protective Ass’n v. Patterson, 204 F.3d 1206, 1210 (9th Cir. 1999); see also Hunt 18 Wesson Foods, Inc. v. Supreme Oil Co., 817 F.2d 75, 77 (9th Cir. 1987) (courts apply the “primary 19 rule of interpretation” that “the common or normal meaning of language will be given to the words 20 of a contract unless circumstances show that in a particular case a special meaning should be 21 attached to it” (cleaned up)). “Whenever possible, the plain language of the contract should be 22

23 2 See also LCR 3(e)(1) (stating principles regarding intradistrict case assignment including that “[i]n all civil cases in which all defendants reside or in which all defendants have their principal places of business, or in which the claim 24 arose in the count[y] of . . . . Whatcom, the case will usually be assigned to a judge in Seattle.”). 1 considered first.” Klamath Water Users Protective Ass’n, 204 F.3d at 1210. 2 The parties both assert that the forum selection clause is not ambiguous. Dkt. No. 23 at 5; 3 Dkt. No. 27 at 9.

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Centro Veterinario y Agricola Limitada v. Aquatic Life Sciences Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centro-veterinario-y-agricola-limitada-v-aquatic-life-sciences-inc-wawd-2023.