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Jiangsu Hongyuan Pharm. Co., Ltd. v. DI Global Logistics Inc.

159 F. Supp. 3d 1316 (2016)

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Jiangsu Hongyuan Pharm. Co., Ltd. v. DI Global Logistics Inc.

United States District Court for the Southern District of Florida
159 F. Supp. 3d 1316 (2016)

Facts

Jiangsu Hongyuan Pharmaceutical Co., Ltd. (Hongyuan) (plaintiff), a Chinese company, contracted with DI Global Logistics Inc. (DI Global), a Florida company, to sell DI Global its chemicals. The contract included a Chinese choice-of-law clause. The contract’s forum-selection clause provided, “In the event of any disputes between the parties the People’s Court of Jiangsu (China) shall be empowered to take cognizance of it, unless coercive law prescribes another court.” DI Global failed to pay an invoice, and Hongyuan filed suit against DI Global for breach of contract, account stated, and unjust enrichment in Florida federal court. DI Global moved to dismiss under forum non conveniens, agreeing to submit to a Chinese court’s jurisdiction. Hongyuan provided scholarly articles noting the Chinese legal system’s delays, corruption, lack of legal safeguards, and political influence. Hongyuan argued that because DI Global had no assets or presence in China, collecting a Chinese judgment from DI Global would be difficult. Hongyuan conceded the cost to refile in China would be low.

Rule of Law

Issue

Holding and Reasoning (Gayles, J.)

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