Cuebiq Group, LLC v. Paedae, Inc., 3:25-cv-02255

Cuebiq Group, LLC sues PaeDae, Inc. d/b/a Gimbal and Gimbal, Inc. for declaratory judgment about CBQ Tech and alleged misappropriation.
PaeDae/Gimbal previously filed a related action in SD California; SDNY applies first-filed rule.
Cuebiq’s CBQ Tech originated with Beintoo; Beintoo licensed Gimbal tech; BeClub operations ended in 2014.
Cuebiq later acquired Cuebiq Sub and licensed CBQ Tech; Defendants purchased Cuebiq products incorporating CBQ Tech in 2016.
Cuebiq was foreclosed on its assets in 2023; CBQ acquired Cuebiq assets; CBQ began selling CBQ Tech products.
California action against Cuebiq proceeded; SDCA default proceedings occurred; SDNY action filed October 2024; motion to dismiss to apply first-filed rule.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether the first-filed rule applies	Actions involve similar parties and interests and overlapping issues.	New York action should be subject to first-filed rule due to related claims.	The first-filed rule applies.
Whether any special circumstances warrant an exception	No special circumstances shown to override first filing.	No special circumstances identified favoring NY forum.	Special circumstances exception does not apply.
Whether balance of convenience favors NY or SDCA	NY forum is convenient for parties; SDCA has a forum-selection clause for defendants.	SDCA is convenient due to forum clause; parties located in NY but interests align with SDCA.	Balance favors SDCA; transfer warranted.
Whether the case should be transferred to SDCA	If transfer is ordered, NY case should be transferred to SDCA or stayed.	Transfer to SDCA is appropriate to avoid duplication; consolidation possible.	Order to transfer the New York action to SDCA.

Emp. Ins. of Wausau v. Fox Ent. Grp., Inc., 522 F.3d 271 (2d Cir. 2008) (special circumstances not required when first-filed rule applies)
In re Cuyahoga Equip. Corp., 980 F.2d 110 (2d Cir. 1992) (first-filed rule allows priority where actions relate to same issues)