What is Forum Non Conveniens (FNC ):
FNC is a legal doctrine that allows a court to dismiss a case when it determines that another forum, usually a foreign jurisdiction, is more appropriate for the trial. This doctrine is often invoked when the court believes that hearing the case in another jurisdiction would be more convenient for the parties involved and would serve the interests of justice.
Background :
A French biotech company, BioTech Innovations S.A., developed groundbreaking technology related to genetic therapies. The company, headquartered in Paris, expanded its operations to the United States, establishing a research facility in Delaware. However, a dispute arose with a patent troll, Innovative Patents LLC, which filed a patent infringement lawsuit against BioTech Innovations in a US federal court in Delaware.
Legal Defense Strategy
BioTech Innovations, represented by a French international business lawyer and a local US law firm, crafted a defense strategy centered on the doctrine of Forum Non Conveniens. They argued that the case should be heard in France due to the significant connections between the dispute and the French jurisdiction.
Collective input of French & US lawyers
The French lawyer emphasized the company’s roots in France, the location of its headquarters, and the majority of its research and development activities.
Demonstrated the potential inconvenience and prejudice faced by BioTech Innovations in defending itself in the US, considering language barriers, cross-border complexities, and the significant French interests involved.
The US law firm highlighted the Delaware research facility’s subsidiary status and argued that the majority of the alleged infringement occurred within the jurisdiction.
Demonstrated that Delaware had a legitimate connection to the case, but acknowledged the potential challenges faced by BioTech Innovations in a US court.
Legal Proceedings
During the court proceedings, the legal teams presented evidence supporting the argument for FNC. They highlighted the complexities of the case, the convenience of France as the forum, and the potential prejudice to BioTech Innovations in the US.
Court Decision :
The US judge, recognizing the strong ties between the case and France, accepted the Forum Non Conveniens argument. The judge decided to dismiss the case from the US court, directing the parties to pursue the litigation in France.
Arbitration in France
Upon dismissal, the case was brought before a French judge with international competence. The French judge, applying Delaware laws as agreed upon by both parties, arbitrated the case in accordance with the chosen jurisdiction.
Outcome
The Forum Non Conveniens strategy allowed BioTech Innovations to shift the case to a more suitable forum, facilitating a fair and just resolution. The French judge’s arbitration ensured that the case proceeded with an understanding of both French and Delaware laws, providing a balanced and informed judgment. This successful defense demonstrated the strategic collaboration between the French and US legal teams in navigating the complexities of international litigation.