Green Aire for Air Conditioning WLL v. Salem

District Court, D. Arizona·Decided August 14, 2020·No. 2:20-cv-01622·Unknown

Opinion

EASTERN DISTRICT OF CALIFORNIA

GREEN AIRE FOR AIR CONDITIONING Case No. 1:18-cv-00873-NONE-SKO W.L.L., Plaintiff, PLAINTIFF’S MOTION TO VACATE v. T TH RAE N S SC FH EE RD VU EL NIN UG E O OR RD , IE NR T A HN ED ALTERNATIVE, MODIFY EXISTING MOHAMED FAROUK SALEM, SCHEDULING ORDER Defendant. ORDER TRANSFERRING CASE PURSUANT TO 28 U.S.C. § 1404 TO THE DISTRICT OF ARIZONA (Doc. 25) _ ____________________________________/ I. INTRODUCTION On June 10, 2020, Plaintiff filed a “Motion to Vacate the Scheduling Order and Transfer Venue or, in the Alternative, Modify Existing Scheduling Order,” (Doc. 25). Defendant filed an opposition on July 1, 2020, and Plaintiff filed a reply on July 8, 2020. (Docs. 30, 31.) Upon review of the motion and supporting documents, the Court deemed the matter suitable for decision without oral argument. Accordingly, the Court vacated the hearing on the motion set for July 15, 2020. (See Doc. 32.) For the reasons set forth below, the motion is granted to the extent that the Court transfers this case to the District of Arizona. The motion is otherwise denied without prejudice as moot.1

1 Plaintiff also filed a “Motion to Withdraw Deemed Admissions Under Fed. R. Civ. P. 36(b)” on June 23, 2020, A. Factual Background2 Plaintiff is a business entity, registered and principally located in the Kingdom of Bahrain, that sells air conditioning components under the brand name “AIR2O.” (See Doc. 1 ¶¶ 4, 7.) Defendant is an individual who resides in Fresno, California, who is Plaintiff’s former managing director and a former shareholder. (Id. ¶¶ 5, 8–9.) After initial success, in 2013 Plaintiff “ran into cash flow difficulties,” and Defendant blamed “the group management for the cash shortages.” (Id. ¶ 12.) Defendant traveled to the United States in January 2014, and sent messages to another shareholder stating that Defendant was “leaving” the business and moving to California. (Id. ¶ 13.) Defendant allegedly “never returned to Bahrain to resume his responsibilities as Managing Director” and refused “to return to Bahrain to conduct a proper handover” of the business. (Id. ¶ 14.) Plaintiff later learned that, before traveling to the United States, Defendant “had accessed and downloaded certain highly confidential and proprietary information and trade secrets from Plaintiff’s computers,” including AIR2O product designs, sales lists, financial models, and other information. (Id. ¶ 15.) Defendant also allegedly registered “AIR2O Cooling LLC” and “Air 2O Cooling Limited” in California and the United Kingdom, respectively, and “essentially commandeered [Plaintiff’s] business for his own personal interest.” (Id. ¶¶ 17–18.) Plaintiff alleges that Defendant “continues to use the website” created by Plaintiff and refuses to turn over the domain name to Plaintiff. (Id. ¶ 22.) B. Procedural Background On June 25, 2018, Plaintiff filed this case against Defendant, alleging causes of action for cybersquatting under the Lanham Act, 15 U.S.C. § 1125(d); misappropriation of trade secrets under the Defend Trade Secrets Act, 18 U.S.C. § 1836, et seq.; and conversion. (Id. ¶¶ 40–58.) infringement of registered trademark. (Docs. 4, 4-1.) The Court entered a scheduling order on October 23, 2018. (Doc. 10.) The scheduling order set the non-expert discovery deadline for November 29, 2019; the expert disclosures deadline for December 6, 2019; the expert discovery deadline for January 10, 2020; the non-dispositive and dispositive motions filing deadline for January 31, 2020; a settlement conference for January 23, 2020; and a trial date of July 7, 2020. (Id. at 1.) On December 11, 2019, Defendant filed motions seeking to compel Plaintiff’s responses to Special Interrogatories, Requests for Production, and Requests for Admission. (Docs. 12, 13, 14.) Defendant filed the motions twelve days after the non-expert discovery deadline passed and failed to show good cause to modify the scheduling order; thus, the Court denied the motions without prejudice. (Id. at 4, 6.) On April 6, 2020, at the request of the parties, the Court continued the pretrial conference to November 12, 2020 and the trial date to January 5, 2021, vacated the settlement conference and set a telephonic status conference before Magistrate Judge Erica P. Grosjean on June 16, 2020, to re-set the settlement conference date. (Doc. 20.) Judge Grosjean set a further status conference for September 15, 2020. (Doc. 28.) C. The Present Motion On June 4, 2020, Plaintiff filed a “Consent Order Granting Substitution of Attorney,” which the Court granted. (Docs. 21, 22.) Plaintiff, through its new counsel, filed the present motion on June 10, 2020. (Doc. 25.) The motion states that Plaintiff is “unfamiliar with the particularities of the American litigation system” and that the actions alleged in the complaint “threw [Plaintiff] into disarray causing it to drift without direction, unable to fully grasp the extent of damage and without the resources to diligently pursue its claims.” (Doc. 25 at 9.) Plaintiff claims” and “[g]iven the potential effect of this action in” the United Kingdom and the Middle East, “it should be heard on the merits.” (Id. at 10.) Now that Plaintiff is “advised by litigation counsel . . . who are sophisticated and experienced in complex commercial and intellectual property litigation,” it seeks to vacate the scheduling order and restart discovery. (Id.) Plaintiff attached a declaration from its predecessor counsel, who explains that a death in the family and an injury to his neck prevented him from meeting the deadlines in this case. (Doc. 25-10.) Plaintiff also seeks to transfer the case to the District of Arizona because Defendant’s business, “AIR2O Cooling LLC” (“AIR2O”), through which Plaintiff has allegedly used the marks and trade secrets at issue in the complaint, is headquartered in Scottsdale, Arizona. (Id.) Plaintiff states that it discovered Defendant’s activities in Arizona after filing the complaint in this case. (Id. at 27.) III. APPLICABLE LAW Title 28 U.S.C. § 1404(a) provides: “[f]or the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought or to any district or division to which all parties have consented.” The purpose of this section is to “prevent the waste ‘of time, energy and money’ and ‘to protect litigants, witnesses and the public against unnecessary inconvenience and expense.’” Van Dusen v. Barrack, 376 U.S. 612, 616 (1964) (quoting Cont’l Grain Co. v. The Barge FBL- 585, 364 U.S. 19, 26, 27 (1960)). The party requesting the transfer bears the burden of showing that the balance of conveniences weighs heavily in favor of the transfer in order to overcome the strong presumption in favor of a plaintiff’s choice of forum. Piper Aircraft Co. v. Reyno, 454 U.S. 235, 255–56 (1981); Decker Coal Co. v. Commonwealth Edison Co., 805 F.2d 834, 843 (9th Cir. 1986). be subject to personal jurisdiction in the transferee court, and venue would have been proper in the transferee court. Hoffman v. Blaski, 363 U.S. 335, 344

Free access — add to your briefcase to read the full text and ask questions with AI

Green Aire for Air Conditioning WLL v. Salem, (D. Ariz. 2020).

Green Aire for Air Conditioning WLL v. Salem (Green Aire for Air Conditioning WLL v. Salem) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Hoffman v. Blaski
363 U.S. 335 (Supreme Court, 1960)
Continental Grain Co. v. Barge FBL-585
364 U.S. 19 (Supreme Court, 1960)
Van Dusen v. Barrack
376 U.S. 612 (Supreme Court, 1964)
Stewart Organization, Inc. v. Ricoh Corp.
487 U.S. 22 (Supreme Court, 1988)
Decker Coal Company v. Commonwealth Edison Company
805 F.2d 834 (Ninth Circuit, 1986)
Anadigics, Inc. v. Raytheon Co.
903 F. Supp. 615 (S.D. New York, 1995)
DeFazio v. Hollister Employee Share Ownership Trust
406 F. Supp. 2d 1085 (E.D. California, 2005)
Allstar Marketing Group, LLC v. Your Store Online, LLC
666 F. Supp. 2d 1109 (C.D. California, 2009)
Florens Container v. Cho Yang Shipping
245 F. Supp. 2d 1086 (N.D. California, 2002)
Jones v. GNC Franchising, Inc.
211 F.3d 495 (Ninth Circuit, 2000)
Pavao v. Unifund CCR Partners
934 F. Supp. 2d 1238 (S.D. California, 2013)
Park v. Dole Fresh Vegetables, Inc.
964 F. Supp. 2d 1088 (N.D. California, 2013)
Matrix Motor Co. v. Toyota Jidosha Kabushiki Kaisha
218 F.R.D. 667 (C.D. California, 2003)
Davis v. Metro Productions, Inc.
885 F.2d 515 (Ninth Circuit, 1989)