Eurofins Pharma US Holdings v. BioAlliance Pharma SA

623 F.3d 147, 2010 U.S. App. LEXIS 20996, 2010 WL 3960583
CourtCourt of Appeals for the Third Circuit
DecidedOctober 12, 2010
Docket09-3790
StatusPublished
Cited by201 cases

This text of 623 F.3d 147 (Eurofins Pharma US Holdings v. BioAlliance Pharma SA) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Eurofins Pharma US Holdings v. BioAlliance Pharma SA, 623 F.3d 147, 2010 U.S. App. LEXIS 20996, 2010 WL 3960583 (3d Cir. 2010).

Opinion

OPINION

GREENAWAY, JR., Circuit Judge.

Appellants Eurofins Pharma US Holdings and Viralliance Inc. appeal the dismissal of their complaint by the United States District Court for the District of Delaware, which held that it lacked personal jurisdiction over the appellees, BioAlliance Pharma SA, Viralliance SAS, and Gilíes Avenard, and also dismissed the action under the doctrine of forum non conveniens. For the reasons that follow, we will affirm the District Court’s ruling that it lacks personal jurisdiction over BioAlliance Pharma SA and Viralliance SAS, vacate the District Court’s order that it lacks personal jurisdiction over Gilíes Avenard, and affirm the District Court’s dismissal of the action under forum non conveniens.

I. BACKGROUND

This dispute arises out of the acquisition by appellants Eurofins Pharma US Holdings (“EPUSH”) and Viralliance Inc. (“VI”) (collectively, “Eurofins Group”) of intellectual property (the “IP”) from BioAlliance Pharma SA (“BioAlliance”) and Viralliance SAS (“Viralliance”) (collectively, “BioAlliance Group”). The IP includes, among other things, in vitro phenotyping technology, known as assays, that assist in the development and administration of drugs used to treat HIV and Hepatitis B by testing the effectiveness of those drugs on specific patients’ viruses. In 2005, Eurofins Group and BioAlliance Group entered into an agreement (the “Transfer Agreement”) to transfer the IP from BioAlliance Group to VI, for the purpose of commercializing the IP in the United States market.

The gravamen of Eurofins Group’s complaint is that, despite BioAlliance Group’s contractual promise that no claims were pending or threatened against it regarding the use of the IP, BioAlliance Group knew about a patent infringement claim threatened against the IP by Advanced Biological Laboratories, S.A. (“ABL”); that Gilíes Avenard — a director of VI, the co-founder and chief operating officer of BioAlliance, and the former president and chief executive of Viralliance — failed to inform the other VI board members of the threatened claim; and that BioAlliance Group wrongly asserts that it continues to own the IP.

A. The Parties

EPUSH is a holding company incorporated in Delaware with its principal place of business in Des Moines, Iowa. Eurofins Scientific, Inc. (“Eurofins Scientific”), an affiliate of EPUSH, is a Delaware corporation with its principal place of business in Des Moines, Iowa. (EPUSH and Eurofins Scientific will be collectively referred to as “Eurofins.”) VI, a corporation formed under the laws of Delaware with its principal place of business in Des Moines, Iowa, was created by, and is a wholly-owned subsid *152 iary of, Eurofins. 1 VI is the acquirer, via the Transfer Agreement, of the IP at the heart of this litigation.

BioAlliance, a société anonyme 2 formed under the laws of France, with its principal place of business in France, is a pharmaceutical company focused on the treatment of opportunistic infections in cancer and HIV. Viralliance was a simplified société anonyme and wholly-owned subsidiary of BioAlliance, formed under the laws of France, which was engaged in the development and commercialization of products and services to assess viral and cancer drug resistance. Avenard, a director of VI and the co-founder and chief executive officer of BioAlliance, is a citizen of France. He was also the president and chief executive officer of Viralliance.

B. The Transfer Agreement

The Transfer Agreement was executed on October 20, 2005, and the transaction, pursuant to the Transfer Agreement, closed on December 15, 2005. The parties agree that the majority, if not the entirety, of the Transfer Agreement negotiations took place in France. Of the individuals involved in the Transfer Agreement negotiations, only Jonathan Lapin, a New York lawyer who assisted Eurofins Group, was not domiciled in Europe. 3

The Transfer Agreement provided that Eurofins formed VI as its wholly owned subsidiary and that it (Eurofins) would fund VI with up to $4 million. In exchange, BioAlliance Group would transfer the IP to VI for ten dollars and the future right to purchase stock options in VI (the “Option”). (App. at 59-60.) In addition, the Transfer Agreement provided that Eurofins would elect one person nominated by BioAlliance to Vi’s board of directors while BioAlliance Group’s Option remained outstanding. (App. at 65.)

The Transfer Agreement states that, to the best of BioAlliance Group’s knowledge, “the IP is valid and enforceable and the current use by BioAlliance Group or its licensees or sub-licensees [] neither infringes on the rights of any third party nor constitutes an unauthorized use,” (App. at 63), and that “there is no fact which could have a material adverse effect on either of []VI or the IP which has not previously been disclosed in writing by [BioAlliance Group].” (App. at 62.)

The transfer from BioAlliance Group to VI of the IP included the transfer of BioAlliance Group’s right, title, and interest in and to all agreements, including licenses, relating to the IP. (App. at 60.) Prior to the Transfer Agreement, BioAlliance Group had licensed patents that comprise part of the IP to Specialty Laboratories, Inc. (“Specialty Labs”). The licensing agreement between BioAlliance Group and Specialty Labs contained a non-infringement representation and warranty, as well as an indemnification obligation by BioAlliance Group, in favor of Specialty Labs. Eurofins Group assumed the indemnification obligation under the Transfer Agreement.

The Transfer Agreement “embodied] the entire agreement of the parties with respect to the subject matter hereof’ and provided that the agreement “shall be governed by and construed in accordance with the laws of the State of Delaware, without *153 regard to the conflicts of law rules of such State.” (App. at 67.) It did not, however, contain a forum selection clause. 4

C. ABL’s Claim Against The IP

On or about July 15 and August 23, 2006, ABL contacted Specialty Labs to claim that its use of certain phenotyping technology, licensed to it by BioAlliance Group, infringed two ABL patents — U.S. Patent Numbers 6,081,786 and 6,188,988. On January 27, 2007, ABL sued AmeriPath, Inc., the corporate parent of Specialty Labs, for patent infringement. 5 VI stepped in to defend the action, pursuant to its contractual obligation to indemnify Specialty Labs. After six months of negotiations, the parties settled the lawsuit. Under the settlement, ABL granted VI a non-exclusive license to use patents 6,081,-786 and 6,188,988, in consideration for a one-time payment and royalties.

The crux of the instant litigation is Euroflns Group’s allegation that it learned for the first time during the settlement negotiations that ABL, in early 2005, had informed BioAlliance Group that it (BioAlliance Group) required a license from ABL, with respect to the phenotyping technology.

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Cite This Page — Counsel Stack

Bluebook (online)
623 F.3d 147, 2010 U.S. App. LEXIS 20996, 2010 WL 3960583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eurofins-pharma-us-holdings-v-bioalliance-pharma-sa-ca3-2010.