NibiruTech Ltd. v. Jang

75 F. Supp. 3d 1076, 2014 U.S. Dist. LEXIS 167051, 2014 WL 6790031
CourtDistrict Court, N.D. California
DecidedDecember 2, 2014
DocketNo. C 14-3091 PJH
StatusPublished
Cited by4 cases

This text of 75 F. Supp. 3d 1076 (NibiruTech Ltd. v. Jang) 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
NibiruTech Ltd. v. Jang, 75 F. Supp. 3d 1076, 2014 U.S. Dist. LEXIS 167051, 2014 WL 6790031 (N.D. Cal. 2014).

Opinion

ORDER DENYING MOTION TO DISMISS

PHYLLIS J. HAMILTON, United States District Judge

Defendants’ motion to dismiss the above-entitled action came on for hearing before this court on November 12, 2014. Plaintiff appeared by its counsel Sophia Jiang, Howard Rockman, and Christopher Aguilar; and defendants appeared by their counsel Michael Lee. Having read the parties’ papers and carefully considered their arguments and the relevant legal authority, the court hereby DENIES the motion as follows.

BACKGROUND

Plaintiff NibiruTech Ltd. (“NibiruTech”), a Chinese company located in Chengdu, Sichuan Province, People’s Republic of China (“PRC”), develops and builds mobile video games based on Android and iOS operating, systems.

Defendants Andrew Jang and Maggie Jang both reside in California, and defendant HJClan, Inc. (“HJClan”) is a California corporation with its principal place of business in Millbrae, California. Nibiru-Tech alleges that HJClan is “owned” by Maggie Jang.

[1079]*1079At some point in 2011 or 2012, Nibiru-Tech hired Andrew Jang, a United States citizen, to serve as its marketing director in China. When he was hired by Nibiru-Tech, Andrew Jang was enrolled in (or had just completed) an MBA program at a Chinese university.

NibiruTech alleges that Andrew Jang was authorized to select and hire third-party vendors on behalf of NibiruTech, and that he conspired with Maggie Jang to create fictitious invoices and to cause Nibi-ruTech to issue checks to HJC1an. Nibi-ruTech asserts that Andrew Jang caused some $818,833 to be unlawfully diverted to HJC1an-rnoney that NibiruTech had intended for its third-party vendors and service providers in the United States and Europe.

NibiruTech filed the complaint in this action on July 8, 2014, asserting four causes of action-breach of fiduciary duty (against Andrew Jang), fraud (against Andrew Jang and Maggie Jang), civil conspiracy (against all three defendants), and conversion (against all three defendants). NibiruTech seeks recovery of the $813,833, plus $5 million in punitive damages.

Defendants now seek an order dismissing the complaint pursuant to Federal Rule of Civil Procedure 12(b)(3) for improper venue, or in the alternative, dismissing the complaint for forum non con-veniens.

DISCUSSION

A. Legal Standard

Rule 12(b)(3) and 28 U.S.C. § 1406(a) allow for dismissal when venue is “wrong” or “improper.” Atlantic Marine Constr. Co. v. United States Dist. Court, - U.S. -, 134 S.Ct. 568, 577, 187 L.Ed.2d 487 (2013). Whether venue is “wrong” or “improper” depends on whether the court in which the case was brought satisfies the requirements of federal venue laws; the existence of a forum selection clause does not render venue in a court “wrong” or “improper” under those rules. Id. at 578-79.

“[T]he appropriate way to enforce a forum-selection clause pointing to a state or foreign forum is through the doctrine of forum non conveniens.” Id. at 580. If dismissal under forum non conve-niens is appropriate, the court need not address other grounds for dismissal. See Fine v. Cambridge Int’l Sys., 584 Fed.Appx. 695, 2014 WL 4214416 at *1 (9th Cir. Aug. 27, 2014) (citing Sinochem Int’l Co. Ltd. v. Malaysia Int’l Shipping Corp., 549 U.S. 422, 425, 127 S.Ct. 1184, 167 L.Ed.2d 15 (2007)). In general, “[a] district court has discretion to decline to exercise jurisdiction in a case where litigation in a foreign forum would be more convenient for the parties.” Lueck v. Sundstrand Corp., 236 F.3d 1137, 1142 (9th Cir.2001) (citing Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 504, 67 S.Ct. 839, 91 L.Ed. 1055 (1947)). Once a district court determines that the appropriate forum is located in a foreign country, the court may dismiss the case. Cheng v. Boeing Co., 708 F.2d 1406, 1409 (9th Cir.1983).

Before dismissing an action based on forum non conveniens, district courts analyze whether an adequate alternative forum exists, and whether the balance of private and public interest factors favors dismissal. Lueck, 236 F.3d at 1142; see also Gutierrez v. Advanced Medical Optics, Inc., 640 F.3d 1025, 1029 (9th Cir.2011).

The “private interest” factors include the plaintiffs choice of forum, the residence of the parties and witnesses, the ease of access to evidence, the availability of compulsory process, and the cost of transporting witnesses. See Boston Telecom. Group, Inc. v. Wood, 588 F.3d 1201, [1080]*10801206-07 (9th Cir.2009). The “public interest” factors include court congestion, imposition of jury duty on the community, local interest in resolving the controversy, the interest in having a diversity case decided in the forum familiar with the relevant law, and avoiding conflicts of law problems. See Gemini Capital Group v. Yap Fishing Corp., 150 F.3d 1088, 1094 (9th Cir.1998).

B. Defendants’ Motion

Defendants argue that the case should be dismissed pursuant to Rule 12(b)(3) for improper venue based on the forum-selection clause in Andrew Jang’s employment agreement. In the alternative, they assert that the case should be dismissed under the doctrine of forum non conveniens.

In Atlantic Marine, the Supreme Court held that a party may not enforce a forum-selection agreement under 28 U.S.C. § 1406(a) or Federal Rule of Civil Procedure 12(b)(3), because the agreement to that forum means the forum is not improper. Where the proposed forum is another federal court, the appropriate mechanism is a motion to transfer under the doctrine of forum non conveniens, ordinarily analyzed under the factors applicable to a motion to transfer under 28 U.S.C. § 1404(a). Id., 134 S.Ct. at 580. Where the proposed alternative forum is another country, the court’s discretion under the doctrine of forum non conveniens is limited to staying or dismissing the action. Piper Aircraft Co. v. Reyno, 454 U.S. 235, 253-54, 102 S.Ct. 252, 70 L.Ed.2d 419 (1981); see also Atlantic Marine, 134 S.Ct. at 580; Sinochem, 549 U.S. at 430, 127 S.Ct. 1184.

The primary difference between a motion to dismiss based on a forum selection clause and a motion to dismiss based solely on the doctrine of forum non conveniens is that where the motion is based on a forum-selection clause, Atlantic Marine

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
75 F. Supp. 3d 1076, 2014 U.S. Dist. LEXIS 167051, 2014 WL 6790031, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nibirutech-ltd-v-jang-cand-2014.