Justia International Law Opinion Summaries

Articles Posted in US Court of Appeals for the First Circuit
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Sysco Machinery Corp. ("Sysco"), a Taiwanese company, sued two other Taiwanese companies, Cymtek Solutions, Inc. ("Cymtek") and Cymmetrik Enterprise Co. Ltd. ("Cymmetrik"), in the U.S. District Court for the District of Massachusetts. Sysco alleged that Cymtek and Cymmetrik infringed its copyrights and misappropriated its trade secrets related to a rotary die-cutting machine developed in Taiwan. The alleged infringing activities occurred in Taiwan, but Sysco claimed that the effects of these activities extended to the United States.Sysco initially pursued legal action in Taiwan's Intellectual Property and Commercial Court (IPCC) and obtained a preliminary injunction against Cymtek and its employees. However, the proceedings in Taiwan are ongoing. Sysco then filed a lawsuit in the U.S. District Court for the Eastern District of North Carolina, which it voluntarily dismissed. Subsequently, Sysco filed the current lawsuit in the District of Massachusetts, asserting claims of trade secret misappropriation, copyright infringement, unfair and deceptive acts, and tortious interference.The U.S. District Court for the District of Massachusetts dismissed the case under the doctrine of forum non conveniens, concluding that Taiwan was a more appropriate forum for the dispute. Sysco appealed the dismissal to the United States Court of Appeals for the First Circuit.The First Circuit reviewed the district court's decision for abuse of discretion and affirmed the dismissal. The court held that Taiwan was an adequate alternative forum, as it could exercise jurisdiction over the parties and provide sufficient remedies for the alleged intellectual property violations. The court also found that the private and public interest factors favored litigation in Taiwan, given that the majority of evidence and witnesses were located there, and the alleged infringing activities primarily occurred in Taiwan. The court concluded that the district court did not abuse its discretion in applying the doctrine of forum non conveniens. View "Sysco Machinery Corp. v. Cymtek Solutions, Inc." on Justia Law

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Beijing Abace Biology Co., Ltd. (Abace) filed a lawsuit against Dr. Chunhong Zhang and MtoZ Biolabs, Inc. (MtoZ) after Dr. Zhang, a former employee, co-founded MtoZ, a company providing similar services to Abace. Abace claimed that Dr. Zhang breached her contract and fiduciary duty, and that MtoZ tortiously interfered with Abace's business. Dr. Zhang had signed several employment-related agreements, including non-compete clauses, while working for Abace. The dispute centered on whether these non-compete agreements were enforceable under Chinese law.The United States District Court for the District of Massachusetts granted summary judgment in favor of Dr. Zhang and MtoZ, concluding that Dr. Zhang did not fall within the categories of employees subject to non-compete agreements under Chinese law. The court found that Dr. Zhang was neither senior management nor senior technical personnel, and did not have access to trade secrets or confidential information that would justify a non-compete restriction.The United States Court of Appeals for the First Circuit reviewed the case de novo and affirmed the district court's decision. The appellate court agreed that under Chinese law, non-compete agreements are enforceable only against senior management, senior technical personnel, or employees with access to trade secrets. The court found no evidence that Dr. Zhang held a senior management or technical role, or that she had access to trade secrets. Consequently, the non-compete agreements were unenforceable, and the summary judgment in favor of Dr. Zhang and MtoZ was upheld. View "Beijing Abace Biology Co., Ltd. v. Zhang" on Justia Law

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The case involved a dispute between two Brazilian nationals, Heitor Ferreira da Costa and Jessica Camila Albefaro de Lima, who were previously married and had a child together. Following their divorce in Brazil, de Lima moved with the child to the United States without da Costa's knowledge. Once da Costa discovered his ex-wife and child's location, he filed a petition under the Hague Convention on the Civil Aspects of International Child Abduction (the Convention) to have the child returned to Brazil. The United States District Court for the District of Massachusetts denied da Costa's petition, concluding that the child was now settled in his new environment and it would not exercise its discretion to order the child's return. The United States Court of Appeals for the First Circuit affirmed the decision, agreeing with the lower court's conclusion based on the totality of the circumstances, including the child's age, stability and duration of residence in the new environment, relationships with family members in the United States, and his progress in learning English. The appellate court noted that returning the child to Brazil would be disruptive given the child's strong connections in the United States and his limited connections to Brazil. View "Ferreira da Costa v. Albefaro de Lima" on Justia Law

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In this case, the United States Securities and Exchange Commission (SEC) sought to recover approximately $3.3 million from Raimund Gastauer, a German citizen residing in Germany, alleging that Gastauer received the money from his son, who had obtained the money through securities fraud in the United States. Gastauer challenged the jurisdiction of the United States District Court for the District of Massachusetts over him, contending that he had no relevant contacts with the United States. The district court, however, ruled it could assert jurisdiction over Gastauer because it had jurisdiction over his son, the primary defendant. The judgment ordered Gastauer to pay the $3.3 million, plus prejudgment interest, to the SEC.Gastauer appealed, and the United States Court of Appeals for the First Circuit reversed the district court's decision. The appellate court rejected the SEC's argument that a court may impute the jurisdictional contacts of a primary defendant to a relief defendant who received ill-gotten funds from the primary defendant. It held that such an approach would violate the relief defendant's due process rights, particularly where, as here, the relief defendant had no relevant contacts with the United States and was not accused of any wrongdoing. The appellate court also underscored that the relief defendant's status as a foreign resident further cautioned against an expansive view of the district court's jurisdiction, given the potential risks to international comity. The appellate court remanded the case to the district court for further proceedings consistent with its opinion. View "SEC v. Gastauer" on Justia Law

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The United States Court of Appeals for the First Circuit reversed a lower court's dismissal of a lawsuit brought by the government of Mexico against several U.S. gun manufacturers and a gun distributor. The lawsuit alleges that these companies facilitated illegal gun trafficking into Mexico, causing significant harm to the country. The lower court had dismissed the case based on the Protection of Lawful Commerce in Arms Act (PLCAA), which generally prohibits lawsuits against gun manufacturers and sellers for harm caused by the criminal misuse of their products. On appeal, the First Circuit held that the PLCAA does apply to lawsuits initiated by foreign governments for harm suffered outside the United States. However, the court also found that Mexico's lawsuit plausibly alleges a type of claim that is statutorily exempt from the PLCAA's general prohibition, specifically, that the defendants knowingly violated federal and state statutes applicable to the sale or marketing of firearms, and that this violation was a proximate cause of the harm Mexico suffered. The case was remanded back to the lower court for further proceedings. View "Estados Unidos Mexicanos v. Smith & Wesson Brands Inc." on Justia Law