Aaron Data Systems, Inc. v. GLD International, Inc.
0:17-cv-62111
S.D. Fla.Mar 23, 2018Background
- Plaintiffs ADSI (Florida corp.) and OZcoin (Texas corp.) are internet-based entities that allege defendants (multiple individuals, GLD Int’l, and Australian Citigold) misappropriated a 100% gold‑backed cryptocurrency project and released OZcoin’s security interest in 100,000 oz of Australian gold.
- Key events and contracts (licensing, gold certificates/security agreement, and lien releases) were negotiated, executed, or centered in Australia; gold was mined and stored in Australia (Perth Mint).
- Plaintiffs sued in S.D. Fla. asserting state law claims (breach of fiduciary duty, conversion, aiding and abetting, FDUTPA, injunctive relief) against primarily Australian actors; OZcoin launched marketing in Austin, TX.
- Defendants moved to dismiss for forum non conveniens and for lack of personal jurisdiction; the court deferred jurisdictional questions and addressed forum non conveniens.
- The magistrate judge found Australia an adequate and available alternative forum, afforded little deference to Plaintiffs’ U.S. incorporations given minimal U.S. presence, and concluded private and public factors favored Australia.
- Recommendation: grant dismissal on forum non conveniens and require any new suit on the same subject matter to be filed in Australia.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether an adequate and available alternative forum exists | Australia is not necessary; Florida is proper forum | Australia is adequate and defendants are amenable to process there | Australia is an adequate and available alternative forum; requirement met |
| Deference to plaintiffs’ choice of forum | Plaintiffs (U.S. corporations) deserve strong presumption of convenience | Presumption is minimal because corporations lack U.S. presence; incorporation is formalistic | Deference to forum choice is weak/minimal given Plaintiffs’ limited U.S. contacts |
| Private‑interest factors (witnesses, documents, cost) | Some U.S. witnesses and records justify litigation in Florida | Majority of critical witnesses and documents are in Australia and beyond U.S. compulsory process | Private factors favor Australia (witnesses/docs inaccessible/expensive to bring to Florida) |
| Public‑interest and choice‑of‑law factors | Florida forum appropriate; FDUTPA applies | Australian courts have greater interest; torts and property centered in Australia; foreign law governs | Public factors and choice‑of‑law issues favor Australia; comity supports dismissal |
Key Cases Cited
- Sinochem Int’l Co. v. Malaysia Int’l Shipping Corp., 549 U.S. 422 (2007) (court may decide forum non conveniens before resolving jurisdictional issues)
- Tazoe v. Airbus S.A.S., 631 F.3d 1321 (11th Cir. 2011) (elements required to dismiss on forum non conveniens)
- Leon v. Million Air, Inc., 251 F.3d 1305 (11th Cir. 2001) (private interest factors for forum non conveniens)
- Aldana v. Del Monte Fresh Produce N.A., 578 F.3d 1283 (11th Cir. 2009) (adequacy of alternative forum standard)
- Piper Aircraft Co. v. Reyno, 454 U.S. 235 (1981) (alternative forum inadequate only in rare circumstances)
- Kolawole v. Sellers, 863 F.3d 1361 (11th Cir. 2017) (evidence to show availability of foreign forum)
- U.S.O. v. Mizuho Holding Co., 547 F.3d 749 (7th Cir. 2008) (limited deference where U.S. incorporation is formal only)
- Magnin v. Teledyne Continental Motors, 91 F.3d 1424 (11th Cir. 1996) (contingency fee availability is weak factor in forum non conveniens analysis)
- SME Racks, Inc. v. Sistemas Mecanicos Para Electronica, S.A., 382 F.3d 1097 (11th Cir. 2004) (public factors to consider in forum non conveniens)
- Grupo Televisa v. Telemundo Communications, 485 F.3d 1233 (11th Cir. 2007) (Restatement choice‑of‑law principles for torts and corporate internal affairs)
- Ford v. Brown, 319 F.3d 1302 (11th Cir. 2003) (comity favors allowing foreign courts to regulate conduct of their citizens)
