J.C. Renfroe & Sons, Inc. v. Renfroe Japan Co.

515 F. Supp. 2d 1258, 2007 U.S. Dist. LEXIS 66233, 2007 WL 2671265
CourtDistrict Court, M.D. Florida
DecidedSeptember 7, 2007
Docket8:06-cv-00451
StatusPublished
Cited by13 cases

This text of 515 F. Supp. 2d 1258 (J.C. Renfroe & Sons, Inc. v. Renfroe Japan Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
J.C. Renfroe & Sons, Inc. v. Renfroe Japan Co., 515 F. Supp. 2d 1258, 2007 U.S. Dist. LEXIS 66233, 2007 WL 2671265 (M.D. Fla. 2007).

Opinion

ORDER

TIMOTHY J. CORRIGAN, District Judge.

This case is before the Court on Defendants Renfroe Japan Co., Ltd. and Yuji Itoh’s Motion To Dismiss (Doc. 16) and Defendants Japan Clamp Company, Ltd., Sori Industries, Inc., and Hiroyuki Sori’s Motion To Dismiss. (Doc. 17.) The Court also considers Plaintiffs’ response to the motions (Doc. 30), argument of counsel presented at a hearing held on April 30, 2007 (Doc. 34), the record of which is incorporated by reference, and the supplemental submissions filed after the hearing. (Does.38, 40, 41, 42.) The Court addresses defendants’ contention that the case should be dismissed pursuant to the doctrine of forum non conveniens in favor of a Japanese forum.

I. BACKGROUND

The allegations of plaintiffs’ complaint recount a Florida company’s business in Japan slipping away. {See Doc. 38 at 11 ¶ 4.) Plaintiff J.C. Renfroe & Sons, Inc. (“Renfroe & Sons”) is a Florida corporation, with its principal place of business in Jacksonville, Florida. (Doc. 1 (“Compl.”) ¶ 1.) Since 1940, the company has been engaged in the manufacture and sale of steel lifting devices, clamps and other related devices (“Renfroe-brand products”), and “has been selling Renfroe-brand products in Japan for over 40 years.” {Id. ¶¶ 8, 9; Doc. 41 at 2.) Plaintiff Anne Renfroe, a resident of Florida, has been president and a board member of Renfroe & Sons since 1999, succeeding her late husband. (Compm 2,10.)

In December 1986, Renfroe & Sons established defendant Renfroe Japan Co., Ltd. (“Renfroe Japan”) as its exclusive licensee to manufacture (or secure the manufacture of) and sell Renfroe-brand products in Japan. Renfroe Japan is a Japanese corporation with its principal place of business in Tokyo. (Compl. ¶¶ 3, 9; Docs. 38 at 10 ¶ 2; 39 at 3 (“License Agreement”).) Plaintiffs allege that defendants Yuji Itoh (“Itoh”) and Hiroyuki Sori (“Sori”), both residents of Japan, together with their direct family members, own a controlling block of over sixty-five percent (65%) of the outstanding shares of Renfroe Japan; Itoh is chairman of the board and Sori is president. Anne Renfroe is a twen *1262 ty-five percent (25%) minority shareholder of Renfroe Japan. (Compl. ¶¶ 6, 7, 11, 12; Doc. 38 at 10 ¶ 2.) She has resigned from Renfroe Japan’s board of directors. (Doc. 38 at 11 ¶ 6.)

Plaintiffs allege that defendant Itoh and his son spent approximately one year training at Renfroe & Sons’ headquarters in Jacksonville, Florida, during which they had complete access to Renfroe & Sons’ proprietary metallurgy, industrial processes, business practices and trade secrets. (ComplJ 17.) Additional Renfroe Japan employees, including defendant Sori, allegedly traveled to Renfroe & Sons’ Jacksonville headquarters for meetings and Renfroe & Sons provided assistance to Renfroe Japan by disclosing certain proprietary know-how and manuals for the manufacture of Renfroe-brand products and the imprinting of the Renfroe-brand mark on products. (Id. ¶¶ 18, 19.)

On March 9, 2000, after the death of Anne Renfroe’s husband, Sori and Itoh, directors of Renfroe Japan, met and approved Renfroe Japan’s selling all Ren-froe-brand products, starting in April 2000, through a new company founded by Sori, defendant Japan Clamp Company, Ltd. (“Japan Clamp”), a Japanese corporation with its principal place of business in Tokyo. Renfroe Japan and Japan Clamp operate at the same location. (Compl. ¶¶ 4, 20, 21, 22; Doc. 38 at 11 ¶¶3, 5.) Though Anne Renfroe believed the new arrangement cut her and Renfroe & Sons out of the sales, marketing and distribution of Renfroe-brand products in Japan, in mid-2000, defendant Sori assured Anne Renfroe that the new arrangement with Japan Clamp would not decrease royalty payments made by Renfroe Japan to Ren-froe & Sons. (Compl. ¶¶ 24; Doc. 38 at 11 ¶¶ 4, 5.)

According to plaintiffs’ allegations, Sori is president of and owner of seventy percent (70%) of the stock in Japan Clamp, and president of and owner (or controller through family holdings) of ninety-eight percent (98%) of all outstanding shares of the remaining defendant, Sori Industries, Inc. (“Sori Industries”), another Japanese corporation with its principal place of business in Tokyo. (Complin 5, 13.) For the relevant time, Sori Industries manufactured all Renfroe-brand products made available for sale in Japan. (Id. ¶ 14; Doc. 38 at 11 ¶ 4.)

According to Anne Renfroe, in January 2002; Itoh requested the license agreement between Renfroe & Sons and Renfroe Japan, which was due to expire soon, be extended so the parties would have time to discuss the terms and conditions of a new agreement going forward. The parties reviewed and negotiated over draft proposed license agreements' — written in English— throughout 2002 and 2003. (Doc. 38 at 11-14 ¶¶ 7, 9,11-14.)

In late 2003 or early 2004, 1 Renfroe & Sons and Renfroe Japan executed a new *1263 License Agreement, with an effective date of November 1, 2002, pursuant to which Renfroe Japan had a license “to manufacture, sell, distribute and otherwise commercialize Renfroe-brand Products during the period October 31, 2002 through October 31, 2005.” (Compl. ¶ 15; Doc. 38 at 14 ¶ 15; Doc. 39 at 3 and ¶ 1.1.) As licensee, Japan Clamp was entitled, upon advance written approval by licensor Renfroe & Sons, to sublicense the use of the licensed marks to persons or entities which would market and sell the products in Japan. The License Agreement provided that upon the October 31, 2005 termination of the agreement, the licensee and sub-licensees were required to immediately cease use of the licensed marks and to surrender or destroy items bearing the licensed marks. (Docs. 38 at 14 ¶ 16; 39 at 4 ¶¶ 1.1,1.5, and at 8 ¶ 5.2.)

Plaintiffs cite to forum selection provisions in the agreement regarding governing law in support of their argument that the lawsuit should remain in this Court. Specifically, the License Agreement provides:

6.6 Governing Law. This Agreement shall be interpreted and enforced according to the substantive laws of the United States and/or the State of Florida as may be applicable, without regard to its conflict or choice of law rules. By execution of this Agreement, LICENSEE submits itself to the jurisdiction of the courts of the United States.

(Doc. 39 at 9 (¶ 6.6).) The License Agreement provides that remedies available to Licensor Renfroe & Sons are “under applicable law, common law, or under this Agreement” and enforcement of any remedy under the Agreement by Renfroe & Sons will not “preclude the exercise or enforcement by LICENSOR or any other right or remedy hereunder or which the LICENSOR is entitled by law to enforce.” (Doc. 39 at 9 ¶ 5.4.) The Agreement was executed by Anne Renfroe, as president of Licensor Renfroe & Sons, and by Itoh as chairman and Sori as president of Licensee Renfroe Japan.

In addition, the License Agreement contains a provision entitled “Guarantee”, which provides as follows:

6.9 Guarantee.

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

Related

Cardiorentis AG v. Iqvia Ltd.
Supreme Court of North Carolina, 2020
Imamura v. Gen. Elec. Co.
371 F. Supp. 3d 1 (District of Columbia, 2019)
Cardiorentis Ag v. Iqvia Ltd.
2018 NCBC 137 (North Carolina Business Court, 2018)
Michaluex C. Credorax
District Court of Appeal of Florida, 2015
Michaluk v. Credorax (USA), Inc.
164 So. 3d 719 (District Court of Appeal of Florida, 2015)
Prophet v. INTERNATIONAL LIFESTYLES, INC.
778 F. Supp. 2d 1358 (S.D. Florida, 2011)
Miller v. Toyota Motor Corp.
593 F. Supp. 2d 1254 (M.D. Florida, 2008)
Pinder v. Moscetti
666 F. Supp. 2d 1313 (S.D. Florida, 2008)

Cite This Page — Counsel Stack

Bluebook (online)
515 F. Supp. 2d 1258, 2007 U.S. Dist. LEXIS 66233, 2007 WL 2671265, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jc-renfroe-sons-inc-v-renfroe-japan-co-flmd-2007.