FS Medical Supplies LLC v. Zhejiang Orient Gene Biotech Co., Ltd.
4:25-cv-01332
S.D. Tex.Aug 6, 2025Background
- FS Medical Supplies (FSMS) and Zhejiang Orient Gene Biotech/Healgen Scientific (Defendants) are parties to a contract with a Texas choice-of-law clause.
- After FSMS filed suit in Texas federal court for breach of contract, Defendants promptly filed a parallel action in China seeking to invalidate the same contract under Texas law and the UCC.
- FSMS moved for an anti-suit injunction to prevent Defendants from prosecuting duplicative and potentially conflicting litigation in China.
- The Chinese legal system presents procedural and substantive hurdles, including evidentiary roadblocks and extremely rare application of U.S. law.
- The Texas court considered whether the Chinese proceedings would cause hardship, frustrate efficient resolution, lead to inconsistent outcomes, or undermine core Texas policies.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether anti-suit injunction should issue | Chinese case imposes hardship, conflicts with Texas law, will duplicate claims, and risk inconsistency | Chinese action focuses on regulatory issues, not contract; Plaintiff can handle foreign litigation | Injunction granted: Chinese case is duplicative, oppressive, and undermines agreed Texas law |
| Whether Chinese litigation is vexatious/oppressive | Plaintiff faces procedural/evidentiary burdens and unfair hardship | Plaintiff's principals know Chinese business, not unduly burdensome | Court finds Chinese litigation would be inequitable hardship |
| Whether parallel cases risk judicial inefficiency or conflicting rulings | Parallel actions could lead to inconsistent outcomes and waste resources | Chinese claims styled as regulatory, not breach; not duplicative | Court finds significant overlap leading to likely conflicts |
| Whether forum policy and comity concerns preclude relief | Upholding Texas choice-of-law clause and preventing forum shopping are important | Comity should bar U.S. court from interfering in foreign action | Texas policy and private nature outweigh comity; injunction appropriate |
Key Cases Cited
- Kaepa, Inc. v. Achilles Corp., 76 F.3d 624 (5th Cir. 1996) (sets standard for when anti-suit injunctions are proper in the Fifth Circuit)
- Bethell v. Peace, 441 F.2d 495 (5th Cir. 1971) (mirror-image claims as basis for anti-suit injunction)
- In re Unterweser Reederei, Gmbh, 428 F.2d 888 (5th Cir. 1970) (early foundation for considering anti-suit injunctions under federal law)
- Ganpat v. E. Pac. Shipping PTE Ltd., 66 F.4th 578 (5th Cir. 2023) (comity minimum in private commercial disputes, anti-suit factors)
