Paul Jones v. IPX Int'l Equatorial Guinea SA
920 F.3d 1085
| 6th Cir. | 2019Background
- Paul Jones, a U.S. citizen, lived and worked primarily in Equatorial Guinea and formed IPX International Equatorial Guinea, S.A. (incorporated and based in Equatorial Guinea) where he served as shareholder, director, and Director General under annual employment contracts negotiated and performed in Equatorial Guinea.
- In 2015 IPX began forming a U.S. subsidiary; Jones traveled to Michigan to set it up and was suspended there amid allegations of misconduct. Jones claims the suspension was a pretext to divest his shares and breached his employment contract.
- Jones sued IPX for breach of contract in the Eastern District of Michigan. The district court dismissed the suit on forum non conveniens grounds, finding Equatorial Guinea to be an adequate and more appropriate forum.
- The district court found most key witnesses and documents located in Equatorial Guinea, Equatorial Guinean law governed the contract (choice-of-law clause), and public/private factors favored dismissal.
- Jones argued Equatorial Guinea was inadequate because of judicial corruption and risk of persecution, and he argued the district court failed to give proper deference to his choice of forum as a U.S. citizen.
- The Sixth Circuit reviewed for clear abuse of discretion and affirmed the dismissal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Adequacy/availability of alternative forum (Equatorial Guinea) | Jones: Equatorial Guinea is corrupt and risks persecution, so it is inadequate | IPX: Amenable to process there; local law provides a remedy for breach | Held: Equatorial Guinea is available and adequate; general corruption claims and Jones’s evidence do not show a well-founded fear of persecution |
| Balance of private interests (witnesses/documents/cost) | Jones: Some witnesses have traveled to U.S.; cost of flying witnesses not considered; documents likely already with IPX | IPX: Key witnesses and documents are in Equatorial Guinea; several witnesses unwilling to travel | Held: Private interests favor Equatorial Guinea; district court’s failure to explicitly consider flight costs was harmless error |
| Balance of public interests (local interest, applicable law) | Jones: Dispute arose in Michigan while he worked here; choice-of-law clause ambiguous invoking “state laws” so Michigan law could apply | IPX: Contract references Equatorial Guinea Labor Law; case is localized to Equatorial Guinea | Held: Public interests favor Equatorial Guinea; choice-of-law reads to Equatorial Guinean law and, even if ambiguous, conflict-of-laws complexity favors dismissal |
| Deference to plaintiff’s forum choice (U.S. citizen) | Jones: As a U.S. citizen, he is entitled to heightened deference | IPX: Jones is domiciled and tied to Equatorial Guinea; less deference appropriate | Held: District court did not clearly err; heightened deference not required because Jones’s contacts show he is not at home in U.S.; any failure to expressly apply heightened deference was harmless on the record |
Key Cases Cited
- Piper Aircraft Co. v. Reyno, 454 U.S. 235 (forum non conveniens standard and deference to trial court)
- Gulf Oil Corp. v. Gilbert, 330 U.S. 501 (private and public interest factors for forum non conveniens)
- Sinochem Int’l Co. v. Malaysia Int’l Shipping Corp., 549 U.S. 422 (distinguishing forum non conveniens from statutory transfer doctrines)
- Zions First Nat’l Bank v. Moto Diesel Mexicana, S.A. de C.V., 629 F.3d 520 (Sixth Circuit standard: review for clear abuse of discretion)
- Hefferan v. Ethicon Endo-Surgery, Inc., 828 F.3d 488 (three-step forum non conveniens framework)
- Duha v. Agrium, Inc., 448 F.3d 867 (heightened deference for U.S. plaintiff; need to address deference step)
- El-Fadl v. Central Bank of Jordan, 75 F.3d 668 (general corruption allegations insufficient to show forum inadequacy)
- Chesley v. Union Carbide Corp., 927 F.2d 60 (courts should not supervise the integrity of another sovereign’s judiciary)