EFCO Corp. v. Aluma Systems USA, Inc.

145 F. Supp. 2d 1040, 2000 U.S. Dist. LEXIS 21218, 2000 WL 33361988
CourtDistrict Court, S.D. Iowa
DecidedDecember 18, 2000
Docket4:97-cv-90069
StatusPublished
Cited by4 cases

This text of 145 F. Supp. 2d 1040 (EFCO Corp. v. Aluma Systems USA, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EFCO Corp. v. Aluma Systems USA, Inc., 145 F. Supp. 2d 1040, 2000 U.S. Dist. LEXIS 21218, 2000 WL 33361988 (S.D. Iowa 2000).

Opinion

MEMORANDUM OPINION AND ORDER

PRATT, District Judge.

This case is before the Court on Defendants’ Motion to Dismiss for Forum Non Conveniens. Plaintiffs resisted Defendants’ motion and the Court held oral argument on the matter. For the reasons discussed below, the Court will grant Defendants’ motion.

I. Background

Who the parties are in this case is important. The Plaintiffs are EFCO Corp. 1 and Economy Forms, Ltd. EFCO Corp. is an Iowa corporation with its principal place of business in Iowa. It is a wholly owned subsidiary of Wilian Holding Company, which is an Iowa corporation. At the time this lawsuit was filed, Economy Forms, Ltd. was also an Iowa corporation and wholly owned subsidiary of Wilian Holding Company. It considered its principal place of business to be Iowa, although it was the entity through which the EFCO worldwide organization did its Canadian business. Subsequent to the filing of this lawsuit, Economy Forms, Ltd. transferred its assets to a newly formed Nova Scotia company called EFCO Canada Co. in exchange for stock. Economy Forms, Ltd. then contributed the stock of EFCO Canada Co. to EFCO Canada Ltd., an Iowa corporation and wholly owned subsidiary of Wilian Holding Company. Economy *1042 Forms Ltd. transferred the remaining assets it held to EFCO de Chile, S.A. and merged itself out of existence. At times throughout this opinion, Economy Forms, Ltd., EFCO Canada Co. and EFCO Canada Ltd. will be referred to collectively as EFCO Canada and both Plaintiffs will be referred to collectively as EFCO.

The Defendants in this case are Aluma Systems USA, Inc. (“Aluma USA”), Aluma Systems Corp. (“Aluma Systems”), and Aluma Systems Canada Inc (“Aluma Canada”). Aluma USA is a California corporation with its principal place of business in California. It is the entity through which Aluma Systems and Aluma Canada do business in the United States. Aluma Systems is a Canadian corporation with its principal place of business in Toronto. It is a wholly owned subsidiary of Tridel Enterprises Inc., which is a Canadian corporation with its principal place of business in Canada. Aluma Canada is also a Canadian corporation with its principal place of business in Toronto. It is a wholly owned subsidiary of Aluma Systems. At times throughout this opinion, the Defendants will be referred to collectively as Aluma.

EFCO claims, and Aluma does not contest, that EFCO and Aluma are two of the three “significant competitors in the world” for customized-construction-forms business. The forms are used in the construction industry to support and form concrete structures of all types- — from tunnels to high-rise buildings. EFCO has offices dispersed over the Americas, as well as Europe and Southeast Asia. EFCO states that it has been in the business for approximately 60 years while Aluma began in 1971. According to EFCO, Aluma did not directly compete with EFCO in the customized forming business until approximately 1992. EFCO states that it developed a significant database of proprietary information that is compiled in the form of a manual and is only distributed to its engineering support personnel. The information is distributed in either hard-copy or software form.

The dispute between these parties arose when EFCO allegedly discovered that Alu-ma had obtained the EFCO database and used it to submit a bid for the construction of Ravens Stadium in Baltimore, Maryland. Aluma did not get the job. EFCO contends that its former employees gave the database to Aluma’s Canadian branch after the former EFCO Canadian branch employees left to work for Aluma Canada. EFCO claims the Canadian branch of Alu-ma, Aluma Canada, helped prepare the bid on Ravens Stadium.

EFCO brought this lawsuit seeking relief under four counts: (1) violation of the Iowa Uniform Trade Secrets Act; (2) inducement of breach of fiduciary obligation; (3) conversion; and (4) unjust enrichment. Prior to filing this lawsuit, EFCO filed a separate lawsuit in Canada. The Canadian complaint named as defendants Aluma Systems, Aluma Canada, and several individuals; it did not name Aluma USA. The complaint stated a variety of claims that substantially overlapped with the claims asserted in the Complaint filed in this Court: copyright infringement, misappropriation of confidential information and trade secrets, trademark infringement, and breach of fiduciary duties. The complaint requested the full panoply of relief, including preliminary and permanent injunctions.

On June 9,1997, Aluma filed a Motion to Dismiss or Stay with this Court. Aluma’s motion to dismiss was based on lack of personal jurisdiction, and its motion to stay was requested in light of similar proceedings (the Canadian lawsuit). On October 30, 1997, the Court denied Aluma motion to dismiss and granted its motion to stay. Then, on February 26, 1999, EFCO *1043 filed, a motion to lift the stay because the Canadian lawsuit was at an impasse. 2 The Court granted EFCO’s motion to lift the stay on August 16, 1999. EFCO’s Canadian lawsuit was later dismissed without prejudice at EFCO’s request.

On August 29, 2000, Aluma filed this Motion to Dismiss for Forum Non Conve-niens. Aluma claims that forcing it to defend EFCO’s lawsuit in Iowa is inappropriate enough to justify dismissing the lawsuit. Aluma suggests that Canada is the more appropriate forum.

II. Discussion

Whether to dismiss EFCO’s lawsuit against Aluma for forum non conveniens is a close question. The Court analyzes the question under the framework outlined by the Supreme Court in Gulf Oil Corporation v. Gilbert, 330 U.S. 501, 508-509, 67 S.Ct. 839, 91 L.Ed. 1055 (1947):

If the combination and weight of factors requisite to given results are difficult to forecast or state, those to be considered are not difficult to name. An interest to be considered, and the one likely to be most pressed, is the private interest of the litigant. Important considerations are the relative ease of access to sources of proof; availability of compulsory process for attendance of unwilling, and the cost of obtaining attendance of willing, witnesses; possibility of view of premises, if view would be appropriate to the action; and all other practical problems that make trial of a case easy, expeditious and inexpensive. There may also be questions as to the enforcibility of a judgment if one is obtained. The court will weigh relative advantages and obstacles to fair trial. It is often said that the plaintiff may not, by choice of an inconvenient forum, ‘vex,’ ‘harass,’ or ‘oppress’ the defendant by inflicting upon him expense or trouble not necessary to his own right to pursue his remedy. But unless the balance is strongly in favor of the defendant, the plaintiffs choice of forum should rarely be disturbed.
Factors of public interest also have place in applying the doctrine. Administrative difficulties follow for courts when litigation is piled up in congested centers instead of being handled at its origin. Jury duty is a burden that ought not to be imposed upon the people of a community which has no relation to the litigation.

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Bluebook (online)
145 F. Supp. 2d 1040, 2000 U.S. Dist. LEXIS 21218, 2000 WL 33361988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/efco-corp-v-aluma-systems-usa-inc-iasd-2000.