Terra International, Inc. v. Mississippi Chemical Corp.

922 F. Supp. 1334, 1996 U.S. Dist. LEXIS 4743, 1996 WL 164745
District Court, N.D. Iowa·Decided April 5, 1996·No. C 95-4088·Published·Cited by 47 cases

Opinion

MEMORANDUM OPINION AND ORDER REGARDING PLAINTIFF’S MOTION FOR PERMANENT INJUNCTION AND DEFENDANT’S MOTION TO TRANSFER OR STAY

BENNETT, District Judge.

TABLE OF CONTENTS

I.INTRODUCTION AND BACKGROUND .1340

A. Procedural Background.1340

1. The lawsuits.1340
2. The TRO and the venue motions.1341
3. Further briefing and discovery disputes.1341

B. Findings Of Fact.1343

*1339 1. “Bad faith” and “surprise”.1343

2. The forum selection clause.1344

II. LEGAL ANALYSIS.1345

A. Intertwining Of The “First-Filed” And “Transfer” Analyses.1345

1. The “first-filed rule”.1345
2. Exceptions to the rule.1346

a. The “compelling circumstances” exception.1346

b. “Balance of convenience” exception.1348

c. The “dead heat” exception.1350

B. The “Transfer” Analysis.1354

1. The “transfer” statute and its purpose.1355
2. Factors in the “transfer” analysis.1357

a. “Balance of convenience” .1358

b. The “interest of justice” .1362

c. Other “relevant factors”.1364

3. Forum selection clauses.1365

a. The weight to be given the clause in a “transfer” analysis.1365

i. Stewart and its progeny.1366

ii. “Mandatory” and “permissive” forum selection clauses.1370

iii. Is this clause entitled to “significant” weight or “no weight”?_1373

b. Applicability of the forum selection clause.1375

i. The syntactical knot.1375

ii. General scope of forum selection clauses.1377

iii. The forum selection clause in this case.1381

C. Certification For Interlocutory Appeal.1382

III. CONCLUSION.1385

Alexander the Great’s simple solution is unavailable to this court as it confronts the Gordian knot 1 of tangled interests and venue questions in litigation stemming from the catastrophic explosion of a fertilizer plant in northwest Iowa on December 13, 1994. The explosion which caused deaths, injuries, and enormous damage. The plaintiff corporation is the operator of the fertilizer plant. The defendant corporation is the inventor, designer, and licensor of the ammonium nitrate neutralizer technology that allegedly precipitated the explosion. The roles of the parties are reversed in parallel litigation brought by the present defendant in federal court in Mississippi.

Presently before the court is the question of where these lawsuits should be litigated. The plaintiff seeks to enjoin permanently the lawsuit brought by the defendant in Mississippi, while the defendant seeks to transfér this lawsuit to Mississippi federal court pursuant to 28 U.S.C. § 1404 or, failing that, to stay the present litigation. Each of the parties at first asserted its own “Alexandrian” solution to cut through the tangle: the plaintiff asserted that the question of the proper forum for this lawsuit could be resolved simply by application of the “first-filed rule,” requiring the enjoining of the defendant’s second-filed action in Mississippi, while the defendant initially asserted, with equal certainty and vehemence, that the venue question could be resolved simply by invoking the forum selection clause in the licensing agreement between the parties. Following filing of many briefs, an evidentiary hearing, and oral arguments, the court still lacks a simple “Alexandrian” solution, yet it must nevertheless unravel the tangled web of complex ven *1340 ue issues assisted by the parties’ excellent briefs and spirited oral arguments.

I. INTRODUCTION AND BACKGROUND

The court has twice considered the factual and some of the procedural background to this litigation in published rulings. See Terra Int'l Inc. v. Mississippi Chem. Corp., 913 F.Supp. 1306, 1308-13 (N.D.Iowa 1996) (ruling on motion for discovery guidance as to ex parte contacts with current and former employees after same hearing in which the present motions were argued); Terra Int'l Inc. v. Mississippi Chem. Corp., 896 F.Supp. 1468, 1469-72 (N.D.Iowa 1995) (granting TRO to enjoin MCC from seeking to enjoin or restrain Terra’s lawsuit in Iowa). The court will therefore recite only the portions of the procedural history and the facts necessary to provide the background to its consideration of the present venue questions.

A. Procedural Background
1. The lawsuits

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Terra International, Inc. v. Mississippi Chemical Corp., 922 F. Supp. 1334, 1996 U.S. Dist. LEXIS 4743, 1996 WL 164745 (N.D. Iowa 1996).

922 F. Supp. 1334 (Terra International, Inc. v. Mississippi Chemical Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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