Grundig Multimedia AG v. Eton Corporation

CourtDistrict Court, N.D. California
DecidedFebruary 5, 2021
Docket5:20-cv-05206
StatusUnknown

This text of Grundig Multimedia AG v. Eton Corporation (Grundig Multimedia AG v. Eton Corporation) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Grundig Multimedia AG v. Eton Corporation, (N.D. Cal. 2021).

Opinion

1 2 3 4 5 6 7 UNITED STATES DISTRICT COURT 8 NORTHERN DISTRICT OF CALIFORNIA 9

10 GRUNDIG MULTIMEDIA AG, Case No. 20-cv-05206-NC 11 Plaintiff, ORDER GRANTING PLAINTIFF'S 12 v. MOTION FOR SUMMARY JUDGMENT, AND GRANTING IN 13 ETÓN CORPORATION, PART AND DENYING IN PART ADMINISTRATIVE MOTION TO 14 Defendant. SEAL 15 Re: Dkt. Nos. 27, 28

16 This case arises out of a breach of contract action brought by Plaintiff Grundig 17 Multimedia (Grundig) against Defendant Etón Corporation (Etón) in the Commercial 18 Court of the Canton of Zurich, Switzerland (the “Swiss action”). In the Swiss action, Etón 19 failed to appear, and the Swiss court entered a default judgment against it. See Dkt. No. 20 27-2 (“MSJ”). The Swiss judgment against Etón is final now that the time to appeal has 21 lapsed. See id. Grundig brings the instant action to recognize and enforce the Swiss 22 Judgment pursuant to California’s Recognition Act. See Dkt. No. 1; Cal. Civ. Proc. Code 23 §§ 1715–1724. On December 2, 2020, Grundig filed a motion for summary judgment and 24 administrative motion to seal. See MSJ; Dkt. No. 27. The Court found the matter suitable 25 for decision without oral argument, so the Court vacated the hearing scheduled for January 26 20, 2021. 27 Having considered the parties’ submissions, the Court GRANTS Grundig’s motion 1 administrative motion to seal. 2 I. BACKGROUND 3 A. Factual Background 4 Grundig, a Swiss consumer electronics company, owns the trademark 5 “GRUNDIG.” See Dkt. No. 27-4 ¶ 6. On February 1, 2014, Etón entered into a 6 Trademark License and Distribution Agreement (the “Agreement”) with Grundig to 7 license the trademark. Id. ¶ 7 Under its terms, the Agreement would be governed by 8 Swiss law, the parties submitted themselves to the exclusive jurisdiction of the “courts of 9 Zurich, Switzerland, for determination of any dispute arising out of or under this 10 Agreement,” and the parties consented to service of process by those courts in a manner 11 provided by Swiss law, waiving any forum non conveniens arguments. Id. ¶ 8. The 12 Agreement also provided that notices pursuant to the Agreement shall be served on Etón at 13 its Palo Alto, California address. See Dkt. No. 30 (“Opp’n”) at 2.; see also Dkt. No. 31 14 (“Reply”) at 5. 15 Etón did not provide Grundig with the royalty statements and payments required 16 under the Agreement. Dkt. No. 27-4 ¶¶ 9–10. After numerous attempts to confer with 17 Etón about the non-payment over a two-year period, see MSJ at 3–4, Grundig filed suit 18 against Etón in the Commercial Court of the Canton of Zurich on December 14, 2018, for 19 breach of the Agreement, see MSJ at 4. The Swiss court issued a decree on February 4, 20 2019 (“February 4 decree”), ordering Etón to respond and designate a Swiss domicile. 21 Dkt. No. 27-4 ¶ 40. The Swiss court confirmed that its February 4 decree “was 22 successfully served to the Defendant on March 25, 2019, by way of judicial assistance.” 23 Id. On March 25, 2019, FedEx delivered a package to Etón at its Palo Alto address, 24 containing the February 4 decree from the Consulate General of Switzerland in San 25 Francisco. Reply, Ex. 1. Etón’s Senior Administrative Assistant signed for the delivery. 26 Id., Exs. 1–2. 27 Etón did not respond to the February 4 decree. Dkt. No. 27-4 ¶ 42. So, the Swiss 1 to respond, at which point the Swiss court would potentially move to make a final 2 judgment in the suit if Etón further defaulted. Id.; Reply, Ex. 3. The Swiss Clerk of Court 3 issued notice of the June 20, 2019, decree via publication in the Swiss Commercial Gazette 4 on June 24, 2019, after Etón failed to respond to notice delivered and received at its Palo 5 Alto address. See Reply, Exs. 1, 3. Etón remained in default after the grace period, and 6 the Swiss court entered default judgment against Etón on July 10, 2019. MSJ at 4; Reply, 7 Ex. 4. The Swiss Clerk of Court issued notice of default by publication on July 16, 2019. 8 See Reply, Ex. 4. Etón maintains that it intends to pursue an appeal or reopening of the 9 Swiss default judgment, but “efforts to identify and retain appropriate counsel have been 10 hampered due to the ongoing Covid-19 Global Pandemic.” Opp’n at 3. 11 The Swiss Judgment establishes that Etón is obligated to pay Grundig four 12 installments of the fixed installment fee pursuant to the Agreement, and payment of a 13 licensing fee for the price at which it sold the licensed products. Dkt. No. 27-4 ¶¶ 44–47. 14 Finally, the Swiss Court also held that Etón is obligated to pay Grundig a default fee, 15 default interest, and Grundig’s Swiss court fees and attorneys’ fees. Id. After the entry of 16 judgment, Etón had thirty days to file a federal appeal against the Swiss judgment in the 17 Swiss Federal Court. Dkt. No. 27-4 ¶¶ 49–50. Etón failed to file an appeal within the 18 allotted time, so the Swiss judgment is now final. Id. Etón has yet to make any payments 19 toward the Swiss judgment. MSJ at 6. 20 B. Procedural History 21 Grundig filed the instant action in this Court on July 29, 2020, along with a separate 22 motion to seal portions of the complaint. Dkt. Nos. 1, 5. The complaint states claims 23 under California’s Recognition Act, and state law breach of contract claims. See Dkt. No. 24 1 ¶¶ 22–33. At the case management conference on October 28, 2020, the parties agreed 25 to participate in mediation and the parties attended mediation on December 22, 2020. See 26 Dkt. No. 32. On December 2, 2020, Grundig moved for summary judgment and filed an 27 administrative motion to seal portions of the summary judgment motion and exhibits. See 1 the jurisdiction of a magistrate judge. Dkt. Nos. 15, 17. 2 II. LEGAL STANDARD 3 Summary judgment may be granted only when, drawing all inferences and 4 resolving all doubts in favor of the nonmoving party, there is no genuine dispute as to any 5 material fact. Fed. R. Civ. P. 56(a); Tolan v. Cotton, 134 S. Ct. 1861, 1863 (2014); 6 Celotex Corp. v. Catrett, 477 U.S. 317, 322 (1986). A fact is material when, under 7 governing substantive law, it could affect the outcome of the case. Anderson v. Liberty 8 Lobby, Inc., 477 U.S. 242, 248 (1986). A dispute about a material fact is genuine if “the 9 evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Id. 10 Bald assertions that genuine issues of material fact exist are insufficient. Galen v. Cnty. of 11 L.A., 477 F.3d 652, 658 (9th Cir. 2007). 12 The moving party bears the burden of identifying those portions of the pleadings, 13 discovery, and affidavits that demonstrate the absence of a genuine issue of material fact. 14 Celotex, 477 U.S. at 323. Once the moving party meets its initial burden, the nonmoving 15 party must go beyond the pleadings, and, by its own affidavits or discovery, set forth 16 specific facts showing that a genuine issue of fact exists for trial. Fed. R. Civ. P. 56(c); 17 Barthelemy v. Air Lines Pilots Ass’n, 897 F.2d 999, 1004 (9th Cir. 1990) (citing Steckl v. 18 Motorola, Inc., 703 F.2d 392, 393 (9th Cir. 1983)). All justifiable inferences, however, 19 must be drawn in the light most favorable to the nonmoving party. Tolan, 134 S. Ct. at 20 1863 (citing Liberty Lobby, 477 U.S. at 255). 21 III.

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