Nine West Holdings, Inc. - Adversary Proceeding

CourtUnited States Bankruptcy Court, S.D. New York
DecidedApril 10, 2020
Docket19-01117
StatusUnknown

This text of Nine West Holdings, Inc. - Adversary Proceeding (Nine West Holdings, Inc. - Adversary Proceeding) is published on Counsel Stack Legal Research, covering United States Bankruptcy Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nine West Holdings, Inc. - Adversary Proceeding, (N.Y. 2020).

Opinion

UNITED STATES BANKRUPTCY COURT SOUTHERN DISTRICT OF NEW YORK --------------------------------------------------------------X In re: : Chapter 11 : Nine West Holdings, Inc.., et al., : Case No. 18-10947 (SCC) : Debtors. : (Jointly Administered) --------------------------------------------------------------X Nine West Holdings, Inc. and Nine West : Development LLC, : : Adv. Proc. No. 19-01117 (SCC) Plaintiffs, : : - against - : : Retail Group S.A.L., : : Defendant. : --------------------------------------------------------------X

MEMORANDUM DECISION DENYING DEFENDANT’S MOTION TO DISMISS FOR FORUM NON CONVENIENS

A P P E A R A N C E S:

KIRKLAND & ELLIS LLP KIRKLAND & ELLIS INTERNATIONAL LLP 601 Lexington Avenue New York, New York 10022 James H.M. Sprayregen, Esq. Christopher J. Marcus, Esq.

300 North LaSalle Street Chicago, Illinois 60654 James A. Stempel, Esq. Joseph M. Graham, Esq.

609 Main Street Houston, Texas 77002 Anna G. Rotman, Esq. Jamie Aycock, Esq. Tabitha J. De Paulo, Esq. Of Counsel

Counsel to the Plaintiffs ORORUS ADVISORS Dekwaneh - Sin El Fil Mirna Chalouhi Highway Aramex Center Building, 3rd Floor Beirut, Lebanon Magda Christina Farhat, Esq. Of Counsel

Counsel to the Defendant

SHELLEY C. CHAPMAN United States Bankruptcy Judge

Before the Court is defendant’s Motion to Dismiss for Forum Non Conveniens on Behalf of Retail Group S.A.L., dated July 5, 2019 (“Motion to Dismiss”) (Doc. No. 13).1 Retail Group S.A.L. (“Defendant”) seeks dismissal of the Complaint, dated April 12, 2019 (“Complaint”) (Doc. No. 1), on the basis of the doctrine of forum non conveniens, asserts that Lebanon is a more appropriate and convenient forum for this litigation, and argues that public and private interests weigh in favor of dismissal. (Motion to Dismiss, p. 2.) Nine West Holdings, Inc. and Nine West Development LLC (the “Plaintiffs,” and together with the Defendant, the “Parties”) oppose this request. (See Plaintiffs’ Response to Defendant’s Motion to Dismiss for Forum Non Conveniens, dated July 19, 2019 (“Opposition”) (Doc. No. 14).) Defendant did not file a reply, and neither party has requested a hearing on the Motion to Dismiss. For the reasons that follow, the Motion to Dismiss is denied.

1 References to “Doc. No.” refer to docket numbers in this adversary proceeding. BACKGROUND2 A. The Complaint Plaintiff Nine West Development LLC is a Delaware limited liability company with its principal place of business in New York, New York. Plaintiff Nine West Holdings, Inc. is a Delaware corporation with its principal place of business in New York, New York. Both

Plaintiffs were debtors in the above-referenced chapter 11 cases pending in this Court. Defendant Retail Group S.A.L. is a Lebanese corporation with its principal place of business in Beirut, Lebanon. Plaintiffs and Defendant entered into a Distribution and License Agreement (“Agreement”) on July 1, 2016. (Complaint, Ex. A.) The Agreement is 44 pages long, excluding exhibits, and by its terms, Plaintiffs appointed Defendant as their “exclusive distributor both at wholesale and through retail stores in Lebanon of women’s footwear, handbags, and small leather goods bearing the Nine West trademark” and their non-exclusive distributor at wholesale and retail stores in Lebanon of “certain non-exclusive footwear and non-

footwear products.” (Complaint ¶ 9.) The Agreement grants the Defendant the right to use certain Nine West trademarks in Lebanon. (Id. ¶ 10.) Plaintiffs assert that Defendant has refused to make payment on outstanding invoices issued between May 25, 2017, and July 16, 2018, for products purchased by and delivered to Defendant under the Agreement, with a total of $1,058,667.07 outstanding. (Id. ¶ 11.) Under the Agreement, Defendant was required to establish a standby letter of credit sufficient to cover all amounts payable to Plaintiffs during each “Selling Season” (as defined in the Agreement), (id.

2 The facts herein are taken from the Complaint, read in the light most favorable to the Plaintiffs. They do not constitute findings of the Court. ¶ 13 (citing Agreement § 8.2.3)), but this letter of credit has expired. (Id. ¶ 14.) The Agreement was assumed and assigned to Authentic Brands Group LLC, on July 3, 2018, in connection with the sale of the “Nine West” brand and certain other assets; in connection with the sale, Plaintiffs retained the right to receive payment for products sold to Defendant pursuant to the Agreement prior to the closing of that sale, which includes the products and invoices at issue here. (Id. ¶ 14,

n. 2) The Complaint asserts one count for breach of contract. Plaintiffs aver that the Agreement is a valid and binding contract, that the Plaintiffs have at all times fully performed their obligations under the Agreement, and that the Defendant’s failure to pay the amounts due is a breach of the Agreement. (Id. ¶¶ 18-20.) Plaintiffs seek damages in the amount of $1,058,667.07, “plus late payment interest and reasonable collection costs, including attorney’s fees and expenses.” (Id. ¶ 21.) B. The Agreement The Agreement is attached to the Complaint as Exhibit A. Several provisions are

particularly relevant to the Motion to Dismiss before the Court. First, the Agreement contains a “split” forum selection clause in which the Plaintiffs on the one hand, and the Defendant, on the other hand, agreed to different forum selection language. Pursuant to Section 17.1, Plaintiffs agree that actions arising out of or relating to the Agreement “may be instituted in the courts of the State of New York or of the United States of America for the Southern District of New York” and submits “generally and unconditionally to the exclusive jurisdiction of the aforesaid courts.” (Agreement § 17.1.) The forum selection clause to which the Defendant agreed, however, provides as follows: [Defendant] . . . hereby irrevocably (a) agrees that any legal or equitable action, suit or proceeding arising out of or relating to this Agreement . . . or for recognition and enforcement of any judgment in respect hereof brought by [Plaintiffs] . . . may be instituted in the courts of the State of New York of the [(sic)] United States of America for the Southern District of New York or in the competent courts located in [Lebanon], and (b) submits with regard to any such action, suit or proceeding . . . generally and unconditionally to the exclusive jurisdiction of the aforesaid courts. (Id. (emphasis added).) Plaintiffs as well as Defendant further agreed to waive various defenses: Each of the parties . . . hereby irrevocably waives, and agrees not to assert . . . (a) any claim that it is not personally subject to the jurisdiction of the above-named courts . . . (b) that it or its property is exempt or immune from jurisdiction of any such court or from any legal process commenced in such courts . . . and (c) to the fullest extent permitted by applicable law, that (i) the action, suit or proceeding in any such court is brought in an inconvenient forum, (ii) the venue of such action, suit or proceeding is improper and (iii) this Agreement, or the subject matter hereof, may not be enforced in or by such courts. (Id. § 17.2.) The Defendant specifically agreed that “a final judgment in any such action, suit or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.” (Id. § 17.5.) The Agreement is governed by New York law. It provides that both the “Agreement and the relationship between the Parties shall be governed by and construed in accordance with the law of the State of New York applicable to agreements made and to be performed within such State and without giving effect to any conflict of law principles which would result in the application of the laws of any other jurisdiction.” (Id. § 19.22.) C.

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