International Technologies Consultants, Inc. v. Euroglas S.A., Glas Tr"sch Holding A.G., Heinz Tr"sch, and Georg Grimm

107 F.3d 386, 41 U.S.P.Q. 2d (BNA) 1820, 1997 U.S. App. LEXIS 2849, 1997 WL 67865
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 20, 1997
Docket94-1200
StatusPublished
Cited by92 cases

This text of 107 F.3d 386 (International Technologies Consultants, Inc. v. Euroglas S.A., Glas Tr"sch Holding A.G., Heinz Tr"sch, and Georg Grimm) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Technologies Consultants, Inc. v. Euroglas S.A., Glas Tr"sch Holding A.G., Heinz Tr"sch, and Georg Grimm, 107 F.3d 386, 41 U.S.P.Q. 2d (BNA) 1820, 1997 U.S. App. LEXIS 2849, 1997 WL 67865 (6th Cir. 1997).

Opinion

DAVID A. NELSON, Circuit Judge.

This is an appeal from the dismissal, for want of in personam jurisdiction, of an action arising from the alleged misappropriation of the design for a manufacturing plant in France. Development of the design was coordinated by the plaintiff, a Michigan consulting firm, pursuant to a letter agreement negotiated in Switzerland with a Swiss company that is one of two corporate defendants here. The agreement, which provided for joint ownership of the design, contained a provision stating that “[(jurisdiction for this contract is Berne, Switzerland, and it will be interpreted under Swiss law.”

The United States District Court for the Eastern District of Michigan (Newblatt, J.) found that “the [Michigan] contacts of each defendant are sufficiently tenuous so that imposing this forum upon them would constitute a denial of their right to substantial justice.” The district court continued as follows:

“The events in the commercial relationship took place primarily in Europe. Any tor-tious behavior that was committed occurred in France or Switzerland and not in the United States. The Court does not accept as a legal fiction that the situs of the tort is Michigan. Therefore, defendants lacked any reasonable expectation that their actions would subject them to suit in this forum.”

As to three of the defendants (a French corporation and two individuals, one a resi *-1196 dent of Switzerland and the other a resident of Austria), it seems very clear to us, upon de novo review, that the plaintiff faded to make a prima facie showing of personal jurisdiction. A closer case is presented as far as the Swiss company is concerned — but given the terms of the plaintiffs contract with that company, and given the Supreme Court’s admonition to exercise restraint in extending our notions of personal jurisdiction into the international field, see Asahi Metal Indus. Co., Ltd. v. Superior Court of California, 480 U.S. 102, 115, 107 S.Ct. 1026, 1033-34, 94 L.Ed.2d 92 (1987), we conclude- that the plaintiff has failed to sustain its burden with respect to the Swiss company as well. To allow the suit to be maintained against this company in Michigan, we are satisfied, would offend “traditional notions of fair play and substantial justice.” See International Shoe Co. v. State of Washington, 326 U.S. 310, 316, 66 S.Ct. 154, 158, 90 L.Ed. 95 (1945). The judgment entered by the district court will be affirmed as to all four defendants.

I

The French facility was designed for manufacturing flat sheets of glass through the use of a flotation process. In this “float glass process,” as it is often called, molten glass is floated on a bath of liquid tin, whence the glass is formed and drawn out in a continuous ribbon prior to being annealed and cut to size.

The technology for the float glass process was developed by a British company, Pilking-ton Brothers, P.L.C., in the late 1950s and early 1960s. Pilldngton’s patents, trade secrets and expertise enabled that company to dominate the world float glass market for many years. As of 1992, we are told, there were approximately 140 glass manufacturing plants world-wide that employed the float process, and 95 percent of them were owned, operated, or licensed by Pilkington.

With the expiration of some of Pilkington’s patents, and the acquisition by others of some of the company’s trade secrets and know-how, competitors found it feasible to enter the float glass field. The plaintiff in the case at bar, International Technologies Consultants, Inc., is an engineering consulting firm that appears to be a pioneer in the development of float glass designs competitive with, and independent of, the Pilkington design. International Technologies is a Michigan corporation with its principal place of business in Brighton, Michigan. It was founded in 1984 by a Michigan resident named Dean Wiley. Mr. Wiley, according to his affidavit, is Managing Director of the company.

In the latter part of 1988 Mr. Wiley attended a convention in Düsseldorf, Germany. There he approached Heinz Trósch, one of the defendants herein, about building a float glass plant in Ohio or Pennsylvania. Mr. Trósch, a resident of Switzerland, is Chairman of the Board of Glas Trósch Holding A.G., the Swiss company subsequently named as a defendant in this action. Glas Trósch has its principal place of business in Bützberg, a city in the Province of Berne, Switzerland. The company has long been engaged in the business of distributing glass products in Europe.

Mr. Trósch expressed interest in Mr. Wiley’s project, and in the spring of 1989 Glas Trósch began paying International Technologies for professional services and expenses related to the development of plans for a float glass facility that, as we shall explain, was subsequently abandoned. A letter of intent regarding the project was signed in June of 1989, and Donora, Pennsylvania, was chosen as the site of the proposed plant.

International Technologies engaged a firm called Stewart Engineers & Associates to assist it on the Donora project. In November of 1989 Stewart was sued by Guardian Industries, Inc., a Pilkington licensee. Guardian claimed that Stewart had misappropriated trade secrets relating to float glass design. The Guardian lawsuit (to which International Technologies was subsequently made a party) created a substantial cloud over the Donora project, and Glas Trósch decided not to go forward with the venture. The record does not indicate that International Technologies ever gave Glas Trósch any of the trade secrets allegedly misappropriated by Stewart.

*-1195 Dean Wiley made several trips to Europe in late 1989 — early 1990, and in the course of these visits he negotiated a new letter of intent with Glas Troseh. It is this agreement that lies at the heart of the present controversy.

The new agreement, entered into as of 27 February 1990 between Glas Troseh and Dean Wiley/International Technologies, was signed by Troseh in Switzerland and by Wiley in Michigan. The agreement recited, among other things, that Glas Troseh intended to build a float glass plant in Europe; that Dean Wiley was to prepare the plant layout, site definition and equipment specifications, was to secure proposals from suppliers, and was to support the efforts of Georg Grimm to secure permits for the plant; 1

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107 F.3d 386, 41 U.S.P.Q. 2d (BNA) 1820, 1997 U.S. App. LEXIS 2849, 1997 WL 67865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-technologies-consultants-inc-v-euroglas-sa-glas-trsch-ca6-1997.