MKM Healthcare Solutions LLC v. Biotronik Incorporated

CourtDistrict Court, D. Arizona
DecidedAugust 31, 2020
Docket4:20-cv-00255
StatusUnknown

This text of MKM Healthcare Solutions LLC v. Biotronik Incorporated (MKM Healthcare Solutions LLC v. Biotronik Incorporated) is published on Counsel Stack Legal Research, covering District Court, D. Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MKM Healthcare Solutions LLC v. Biotronik Incorporated, (D. Ariz. 2020).

Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

9 MKM Healthcare Solutions LLC, et al., No. CV-20-00255-TUC-CKJ

10 Plaintiffs, ORDER

11 v.

12 Biotronik Incorporated,

13 Defendant. 14 15 Before the Court are Defendant’s Motion to Transfer Venue to the United States 16 District Court for the District of Oregon pursuant to 28 U.S.C. § 1404 (Doc. 3) and 17 Defendant’s Motion to Strike Information Presented by Plaintiffs That They Agreed in 18 Writing were 408 Communications (Doc. 11). For the following reasons, Defendant’s 19 Motion to Transfer Venue is GRANTED, and Defendant’s Motion to Strike 408 20 Communications is DENIED. The Clerk of Court is instructed to transfer this case to the 21 U.S. District Court for the District of Oregon, Portland Division. 22 BACKGROUND1 23 In 2014, Defendant Biotronik Incorporated hired Plaintiff Michael McCormick to 24 assist in selling its products and services in the state of Arizona. (Doc. 1-5, ¶ 19) Plaintiff 25 works and resides in Pima County, Arizona. Id., ¶ 3. Defendant is a medical technology 26 corporation organized under the laws of Delaware with its principal place of business in 27 Lake Oswego, Oregon. (Doc. 4, ¶ 4) The services Plaintiff performed on behalf of

28 1 The information in the background section is taken from the record as a whole including Plaintiffs’ original complaint and the parties’ motions leading up to this Order. 1 Defendant included, but were not limited to: (a) promoting, selling, distributing, and 2 servicing Defendant’s healthcare products; (b) taking all actions necessary to sell 3 Defendant’s products to customers in the assigned territory; (c) obtaining technical 4 certifications from Defendant regarding its products and maintaining a high degree of 5 technical knowledge regarding the operation and use of those products; (d) providing 6 support services to physicians, hospitals, clinics, and allied health professionals within the 7 territory; (e) serving as an intermediary between Defendant and its participating physicians 8 during physician training sessions; (f) serving as a mentor to trainees on the occasions 9 Plaintiff attended training sessions; and (g) completing training forms during physician 10 training sessions. (Doc. 3 at 2-3; Doc. 1-5, ¶¶ 45, 48, 67) In October 2019, Defendant sent 11 Plaintiff a notice of termination concerning their most recent sales agreement (Doc. 4, ¶ 12 23); and in May 2020, Plaintiff filed suit in Pima County Superior Court alleging, inter 13 alia, Defendant illegally terminated their agreement without cause (Doc. 1-5 at 13-14). 14 PROCEDURAL HISTORY 15 On May 20, 2020, Plaintiffs MKM Healthcare Solutions, LLC, and Michael 16 McCormick filed their complaint in Pima County Superior Court alleging (i) violation of 17 Arizona’s Civil RICO statute, Ariz. Rev. Stat. Ann. § 13-2301(D)(4)(b) (2020); (ii) 18 defamation per se; (iii) defamation; (iv) breach of contract; (v) breach of covenant of good 19 faith and fair dealing; and seeking (vi) declaratory judgment of obligation to defend, 20 indemnify, or hold harmless. On June 14, 2020, Defendant filed a notice of removal under 21 28 U.S.C. §§ 1331, 1441(a) and 1446. On June 16, 2020, Defendant filed a motion to 22 transfer venue under 28 U.S.C. § 1404 and its answer to Plaintiffs’ complaint. On 23 June 30, 2020, Plaintiffs filed their response to the motion to transfer, in which they 24 requested oral argument. On July 13, 2020, Defendant filed its reply and a motion to strike 25 408 communications in Plaintiffs’ response. On August 25, 2020, the Court held oral 26 arguments on Defendant’s Motion to Transfer Venue. This Order follows. 27 LEGAL STANDARD 28 28 U.S.C. § 1404(a) provides a mechanism for enforcement of forum selection 1 clauses that point to a particular federal district. Atl. Marine Constr. Co. v. U.S. Dist. Ct. 2 for W. Dist. of Tex., 571 U.S. 49, 59 (2013). Under § 1404(a), the district court has 3 discretion to “transfer any civil action . . . to any district . . . to which all parties have 4 consented.” 28 U.S.C. § 1404(a). “[T]he presence of a forum selection clause is a 5 ‘significant factor’ in the court’s § 1404(a) analysis.” Jones v. GNC Franchising, Inc., 211 6 F.3d 495, 499 (9th Cir. 2000) (citation omitted). Although a plaintiff’s choice of forum is 7 ordinarily entitled to some deference, a valid forum selection clause alters that calculus. 8 See Atl. Marine, 571 U.S. at 63 (“[W]hen a plaintiff agrees by contract to bring suit only 9 in a specified forum—presumably in exchange for other binding promises by the 10 defendant—the plaintiff has effectively exercised its “venue privilege” before a dispute 11 arises”). 12 Thus, a forum-selection clause is “controlling unless the plaintiff [makes] a strong 13 showing that: (1) the clause is invalid due to ‘fraud or overreaching,’ (2) ‘enforcement 14 would contravene a strong public policy of the forum in which suit is brought,’ . . . or (3) 15 ‘trial in the contractual forum will be so gravely difficult and inconvenient that [the litigant] 16 will for all practical purposes be deprived of his day in court.’ ” Gemini Techs., Inc. v. 17 Smith & Wesson Corp., 931 F.3d 911, 915 (9th Cir. 2019) (quoting M/S Bremen v. Zapata 18 Off-Shore Co., 407 U.S. 1, 15 (1972). 19 The presence of a valid forum-selection clause also requires the court to adjust its 20 § 1404(a) analysis in three ways. Atl. Marine, 571 U.S. at 63. “First, the plaintiff's choice 21 of forum merits no weight. Rather, as the party defying the forum-selection clause, the 22 plaintiff bears the burden of establishing that transfer to the forum for which the parties 23 bargained is unwarranted.” Id. “Second, a court evaluating a . . . § 1404(a) motion to 24 transfer based on a forum-selection clause should not consider arguments about the parties' 25 private interests. Id. at 64. “Third, when a party bound by a forum-selection clause flouts 26 its contractual obligation and files suit in a different forum, a § 1404(a) transfer of venue 27 will not carry with it the original venue's choice-of-law rules—a factor that in some 28 circumstances may affect public-interest considerations.” Id. (citation omitted). “Only 1 under extraordinary circumstances unrelated to the convenience of the parties should a 2 § 1404(a) motion be denied.” Id. at 62. 3 ANALYSIS 4 Defendant brings its Motion to Transfer Venue under § 1404(a) arguing the Court 5 should transfer this case to the U.S. District Court for the District of Oregon due to the 6 forum selection clause in its Authorized Independent Sales Representative Agreement 7 (“Agreement”) with Plaintiffs. (Doc.

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MKM Healthcare Solutions LLC v. Biotronik Incorporated, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mkm-healthcare-solutions-llc-v-biotronik-incorporated-azd-2020.