373 N.C. 309
N.C.2020Background
- Cardiorentis AG (Swiss) contracted with IQVIA Ltd. (UK) in 2012 under a Services Agreement (governed by English law) to run a global Phase III clinical trial of Ularitide; IQVIA RDS, Inc. (North Carolina) executed a related Quality Agreement.
- The multinational trial failed; Cardiorentis alleges hundreds of ineligible patients were enrolled, that IQVIA personnel failed to monitor, verify source data, and concealed deviations, and asserts breach of contract, fraud, tortious misrepresentation, and UDTPA claims.
- Defendants filed pre-answer motions: a joint motion to stay under N.C. Gen. Stat. § 1-75.12 (forum non conveniens), IQVIA UK’s motion to dismiss for lack of personal jurisdiction, and a Rule 12(b)(6) motion to dismiss on the merits.
- The trial involved hundreds of investigators and trial personnel scattered globally, with major concentrations of relevant witnesses and teams in Europe; very few key personnel were in North Carolina.
- The Services Agreement is governed by English law; Cardiorentis is Swiss and alleges injury (lost profits, trial costs) likely sustained at its Swiss headquarters.
- The Superior Court granted the stay under § 1-75.12, finding England a convenient, reasonable, and fair alternative forum; other motions were denied as moot and the case placed on an inactive docket with periodic status reports.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether to stay the case under N.C. Gen. Stat. § 1-75.12 (forum non conveniens) | Cardiorentis: North Carolina is the more convenient forum (chosen over England) | Defendants: North Carolina is inconvenient; England is the proper forum | Court granted stay — England is a convenient, reasonable, fair forum and a stay avoids substantial injustice |
| Deference to plaintiff's choice of forum | Cardiorentis: Its forum choice deserves deference | Defendants: Foreign plaintiff’s choice merits reduced deference and suggests forum shopping | Court applied reduced deference to Cardiorentis’s choice (Swiss plaintiff sues abroad) |
| Location and convenience of witnesses/evidence; availability of compulsory process | Cardiorentis: Key QA/CEVA witnesses and several IQVIA NC officers are in North Carolina and material | Defendants: Most material witnesses (investigators, CRAs, CPM, data teams, CEC/DSMB) and documents are in Europe; compulsory process weight is limited | Court found witnesses/evidence concentrated in Europe, favoring England; compulsory process factor neutral |
| Applicable law and local interest; fairness of alternative forum | Cardiorentis: North Carolina has an interest; some claims could implicate NC law | Defendants: Services Agreement and related contract claims governed by English law; torts likely governed by Swiss/English law; England has stronger local interest | Court held English (and likely Swiss) law applies to key claims; England has a stronger local interest; defendants consented to suit there — factor favors stay |
Key Cases Cited
- Motor Inn Mgmt., Inc. v. Irvin-Fuller Dev. Co., 266 S.E.2d 368 (N.C. App. 1980) (articulates N.C. standard for forum non conveniens stays)
- Gulf Oil Corp. v. Gilbert, 330 U.S. 501 (U.S. 1947) (public and private interest factors for forum non conveniens)
- Piper Aircraft Co. v. Reyno, 454 U.S. 235 (U.S. 1981) (foreign plaintiff’s forum choice receives reduced deference)
- Sinochem Int’l Co. v. Malay. Int’l Shipping Corp., 549 U.S. 422 (U.S. 2007) (forum non conveniens may be resolved before personal jurisdiction)
- DiFederico v. Marriott Int’l, Inc., 714 F.3d 796 (4th Cir. 2013) (weight to be given compulsory process in forum non conveniens analysis)
- Schertenleib v. Traum, 589 F.2d 1156 (2d Cir. 1978) (European forum appropriate when witnesses are concentrated in Europe)
- La Seguridad v. Transytur Line, 707 F.2d 1304 (11th Cir. 1983) (convenience is the touchstone of forum non conveniens)
- Lawyers Mut. Liab. Ins. Co. of N.C. v. Nexsen Pruet Jacobs & Pollard, 435 S.E.2d 571 (N.C. App. 1993) (lists factors considered under N.C. forum non conveniens analysis)