International Company Defended in California

Client:	London jeweler
Representation:	Breach of contract defense
Date:	August 2008
Locations:	Northern District of California

Summary:

A London jeweler with international retail operations was sued in California state court by a Bay Area jeweler alleging breach of contract and fraud in the sale of precious gems. In its suit, the California plaintiff moved to attach the London company's assets, and argued that a consignment contract between the two companies required the dispute to be tried in the California courts. The U.K.-based company turned to Schiff Hardin to defend this lawsuit on foreign soil.

Trial attorneys in our Private Companies Group first removed the action to federal court for the Northern District of California, then brought a successful motion to dismiss the case in its entirety on grounds that California courts did not have personal jurisdiction over our client.

Key evidence presented by Schiff Hardin showed the irrelevance of the consignment contract to the actions giving rise to the dispute; the location in London and Europe of critical witnesses and evidence; and the limited nature of the British company's operations within the state of California. The federal court’s order dismissing this case put an end to the dispute in the U.S., prevented attachment of our client's assets and left the plaintiff only one option: try again in the courts of London. To date, the plaintiff has not done so.