Yangtze Memory Technologies, Inc. v. Strand Consult

District Court, N.D. California·Decided September 12, 2025·No. 5:24-cv-03454·Unknown

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 YANGTZE MEMORY TECHNOLOGIES, Case No. 24-cv-03454-NW INC., et al., 8 ORDER GRANTING MOTION FOR Plaintiffs, RECONSIDERATION; DENYING 9 v. MOTION TO TRANSFER; GRANTING 10 STRAND CONSULT, et al., M NO O N T I C O O N N V T E O N D I I E S N M S I SS FOR FORUM 11 Defendants. Re: ECF Nos. 88, 92, 91

12 13 On June 7, 2024, Plaintiffs Yangtze Memory Technologies Company, Ltd., (“YMTC”) and 14 Yangtze Memory Technologies, Inc. (“YMT – USA”) (collectively, “Plaintiffs”) filed a complaint 15 alleging claims for trade libel and violations of Cal. Bus. Prof. Code § 17200 et seq. against 16 Defendants Strand Consult and Roslyn Layton. Compl., ECF No. 1. On November 17, 2024, 17 Plaintiffs filed an amended complaint, dropping their state law claims, and instead bringing claims 18 under the Latham Act, 15 U.S.C. § 1125(a), and adding Defendant DCI Group AZ, L.L.C. 19 (“DCI”). Am. Compl., ECF No. 50 (“FAC”). Defendants DCI, Strand Consult, and Roslyn 20 Layton moved to dismiss Plaintiffs’ amended complaint. ECF No. 65. 21 On May 20, 2025, the Court granted Defendants’ motion to dismiss based on lack of 22 personal jurisdiction over DCI without leave to amend, and with leave to amend as to personal 23 jurisdiction over Strand Consult and Layton. ECF No. 81 (“May 2025 Order”). The Court 24 permitted Plaintiffs to file a second amended complaint by June 10, 2025, to allege specific facts 25 that establish that Strand Consult and Layton (together, “Defendants”) purposefully availed 26 themselves of the forum and that Plaintiffs’ claims arise out of Strand Consult and Layton’s 27 forum-related activities. Id. 1 Plaintiffs have not filed a second amended complaint. Instead, on May 30, 2025, Plaintiffs 2 requested leave of Court to file a motion for reconsideration, which the Court granted. ECF 3 No. 83. Plaintiffs seek reconsideration of the portion of the Court’s May 2025 Order dismissing 4 Defendants (Strand Consult and Layton) for lack of personal jurisdiction. Mot. for 5 Reconsideration, ECF No. 88 (“Mot.”). Plaintiffs do not seek reconsideration of the Court’s 6 dismissal of DCI. Defendants opposed, ECF No. 89, and Plaintiffs filed a reply, ECF No. 90. 7 On July 21, 2025, Plaintiffs filed a motion to transfer this action to the United States 8 District Court for the District of Columbia. ECF No. 91. On July 30, 2025, Defendants Strand 9 Consult and Layton filed a motion to dismiss for forum non conveniens. ECF No. 92. The parties 10 filed respective oppositions and replies to the motions. ECF Nos. 93, 94, 95, 97. 11 The Court found the motions suitable for resolution without oral argument and vacated the 12 hearings set for September 3, 2025. Civil L.R. 7-1(b); ECF No. 98. After careful review of the 13 briefing and the relevant law, the Court GRANTS Plaintiff’s motion for reconsideration; DENIES 14 Plaintiffs’ motion to transfer, and GRANTS Defendants’ motion to dismiss for forum non 15 conveniens. 16 I. BACKGROUND 17 This order assumes familiarity with the facts from the Court’s May 2025 Order and repeats 18 only facts necessary for the resolution of the motions currently before the Court. 19 Plaintiffs are “one of the world’s leading developers and manufacturers of 3D NAND flash 20 memories.” FAC ¶ 5. Plaintiff YMTC is headquartered in Wuhan, China, but conducts business 21 globally. Id. ¶ 20. Plaintiff YMTC – USA is a wholly owned subsidiary of YMTC and is a 22 California corporation with its principal place of business in Santa Clara, California. Id. ¶ 21. 23 Defendant Strand Consult maintains its principal place of business in Copenhagen, 24 Denmark, and does business as China Tech Threat, a website. Id. ¶ 22. Defendant Roslyn Layton 25 is Executive Vice President of Strand Consult and a “co-founder” of China Tech Threat. Id. ¶ 23. 26 Layton is domiciled in Denmark. May 2025 Order at 10. 27 1 II. DISCUSSION 2 Before the Court are Plaintiffs’ motion for reconsideration and motion to transfer, and 3 Defendants’ motion for forum non conveniens. All three motions touch on the same underlying 4 question of where the underlying dispute should be heard. Given the pending motions, it is clear 5 that the moving parties prefer their dispute be heard outside of this District. Plaintiffs ask the 6 Court to transfer the case to the District of Columbia (with or without first ruling on the motion for 7 reconsideration), while Defendants ask the Court to dismiss for forum non conveniens so this case 8 may proceed in Denmark. 9 A. Motion for Reconsideration 10 Taking the motions in the order they were filed; the Court turns first to Plaintiffs’ motion 11 for reconsideration of the May 2025 Order. 12 A litigant dissatisfied with an interlocutory ruling may seek leave to file a motion for 13 reconsideration under Civil Local Rule 7-9. Meas v. City & County of San Francisco, 681 F. 14 Supp. 2d 1128, 1143 (N.D. Cal. 2010); see also Fed. R. Civ. P. 54(b). A motion for 15 reconsideration may be made on one of three grounds: (1) a material difference in fact or law 16 exists from that which was presented to the Court, which, in the exercise of reasonable diligence, 17 the party applying for reconsideration did not know at the time of the order; (2) the emergence of 18 new material facts or a change of law; or (3) a manifest failure by the Court to consider material 19 facts or dispositive legal arguments presented before entry of judgment. Civ. L.R. 7-9(b)(1)-(3). 20 The moving party may not re-argue any written or oral argument previously asserted to the Court, 21 nor should they raise any new arguments not discussed in their original briefs. L.R. 7-9(c); Garcia 22 v. City of Napa, No. 13-3886-EDL, 2014 WL 342085 at *1 (N.D. Cal. 2014); Arakji v. Microchip 23 Tech. Inc., No. 19-2936-BLF, 2019 WL 5626265 at *1 (N.D. Cal. 2019). This court has broad 24 discretion to reconsider and revise its prior orders. See Fed. R. Civ. P. 54(b). 25 Plaintiffs contend that reconsideration is appropriate for two reasons: (1) because 26 Defendants forfeited any personal jurisdiction defense, and (2) the “Court addressed and decided 27 personal jurisdiction on its own initiative—despite Strand and Layton’s waiver—and without 1 After reconsideration, the Court concludes that Strand Consult and Layton waived personal 2 jurisdiction by failing to raise the issue in their motion to dismiss. The Court had considered the 3 totality of Defendants’ briefing, where the issue of lack of personal jurisdiction was raised in 4 multiple filings, and the fact that Defendant DCI had moved to dismiss for lack of personal 5 jurisdiction. However, upon further review, the Court agrees with Plaintiffs that the analysis must 6 be limited to whether Defendants explicitly and individually included such grounds in their motion 7 to dismiss, which they did not. See Fed. R. Civ. Pro 12(h)(1); Schnabel v. Lui, 302 F.3d 1023, 8 1033 (9th Cir. 2002) (defendant “waived any defense of lack of personal jurisdiction, insufficiency 9 of process, or insufficiency of service of process, by failing to raise the defense in its first motion 10 under Rule 12(b).”). Had Defendants raised such a defense, the Court’s reasoning in the May 11 2025 Order would persist. Because Defendants Strand Consult and Layton did not raise lack of 12 personal jurisdiction as grounds in their motion to dismiss, they have therefore waived the 13 defense. As a result, the Court has personal jurisdiction over Defendants Strand Consult and 14 Layton in this case, in this District.

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