Court Opinion

ID: 9488899
Source: CourtListenerOpinion
Date Created: 2023-08-05 12:59:08.390393+00
Date Added: 2024-06-11T17:53:10.617315
License: Public Domain

EMILIO M. GARZA, Circuit Judge,
dissenting:
International comity represents a principle of paramount importance in our world of ever increasing economic interdependence. Admitting that “comity” may be a somewhat elusive concept1 does not mean that we can blithely ignore its cautionary dictate.2 Unless we proceed in each instance with respect for the independent jurisdiction of a sovereign nation’s courts, we risk provoking retaliation in turn, with detrimental consequences that may reverberate far beyond the particular dispute and its private litigants. Amicable relations among sovereign nations and their judicial systems depend on our recognition, as federal courts, that we share the international arena with co-equal judicial bodies, and that we therefore act to deprive a foreign court of jurisdiction only in the most extreme circumstances. Because I feel that the majority’s opinion does not grant the principle of international comity the weight it deserves, I must respectfully dissent.
I
A
I do not quarrel with the well established principle, relied on by the majority, that our courts have the power to control the conduct of persons subject to their jurisdiction, even to the extent of enjoining them from prosecuting in a foreign jurisdiction. I write to emphasize, however, that under concurrent jurisdiction, “parallel proceedings on the same in personam claim should ordinarily be allowed to proceed simultaneously, at least until a judgment is reached in one which can be pled as res judicata in the other.” Laker Airways Ltd. v. Sabena, Belgian World Airlines, 731 F.2d 909, 926-27 (D.C.Cir.1984).3 The filing of a second parallel action in another jurisdiction does not necessarily conflict with or prevent the first court from exercising its legitimate concurrent jurisdiction. Id. at 926. In the ordinary case, both forums should be free to proceed to a judgment, unhindered by the concurrent exercise of jurisdiction in another court.4
*630The issuance of an antisuit injunction runs directly counter to this principle of tolerating parallel proceedings. An antisuit injunction “conveys the message ... that the issuing court has so little confidence in the foreign court’s ability to adjudicate a given dispute fairly and efficiently that it is unwilling even to allow the possibility.” Gau Shan Co. v. Bankers Trust Co., 956 F.2d 1349, 1355 (6th Cir.1992). It makes no difference that in formal terms the injunction is only addressed to the parties. The antisuit injunction operates to restrict the foreign court’s ability to exercise its jurisdiction as effectively as if it were addressed to the foreign court itself. Laker Airways, 731 F.2d at 927; see also Donovan v. City of Dallas, 377 U.S. 408, 413, 84 S.Ct. 1579, 1582-83, 12 L.Ed.2d 409 (1964). Enjoining the parties from litigating in a foreign court will necessarily compromise the principles of comity, and may lead to undesirable consequences. For example, the foreign court may react by issuing a similar injunction, thereby preventing any party from obtaining a remedy. Laker Airways, 731 F.2d at 927. The foreign court may also be less inclined to enforce a judgment by our courts. The refusal to enforce a foreign judgment, however, is less offensive than acting to prevent the foreign court from hearing the matter in the first place. Id. at 931.
Antisuit injunctions intended to carve out exclusive jurisdiction may also have unintended, widespread effects on international commerce. Without “an atmosphere of cooperation and reciprocity between nations,” the ability to predict future consequences of international transactions will inevitably suffer. Id. To 'operate effectively and efficiently, international markets require a degree of predictability which can only be harmed by antisuit injunctions and the resulting breakdown of cooperation and reciprocity between courts of different nations. Id. The attempt to exercise exclusive jurisdiction over international economic affairs is essentially an intrusion into the realm of international economic policy that should appropriately be left to our legislature and the treaty making process.5 As the court in Laker Airways stated, “Absent an explicit directive from Congress, this court has neither the authority nor the institutional resources to weigh the policy and political factors that must be evaluated when resolving competing claims of jurisdiction. In contrast, diplomatic and executive channels are, by definition, designed to exchange, negotiate, and reconcile the problems which accompany the realization of national interests within the sphere of international association.” Laker Airways, 731 F.2d at 955.
The majority appears to require an affirmative showing that the granting of an anti-suit injunction in this case would immediately and concretely affect adversely the relations between the United States and Japan. Unless there is evidence that this antisuit injunction would “actually threaten” the relations between the two countries, the majority is comfortable to assume otherwise. Cf. Allendale Mut. Ins. Co. v. Bull Data Systems, Inc., 10 F.3d 425, 431-33 (7th Cir.1993) (requiring evidence of concrete harm to the foreign relations of the United States). Some courts have gone so far as to suggest that we might expect, for example, a representative of the foreign nation to convey then-country’s concern regarding the issuance of an antisuit injunction in that case. See, e.g., id. at 431; Philips Medical Sys. Int’l B.V. v. *631Bruetman, 8 F.3d 600, 605 (7th Cir.1993). Insisting on evidence of immediate and concrete harm, in the form of a diplomatic protest or otherwise, is both unrealistic and shortsighted. As with most transnational relations, the potential harm to international comity caused by the issuance of a specific antisuit injunction will be as difficult to predict, as it will be to remedy. It is precisely this troubling uncertainty, and the recognition that our courts are ill equipped to weigh these types of international policy considerations, that cautions us to make the respectful deference underlying international comity the rule rather than the exception.
B
In holding that the district court in this ease did not abuse its discretion by enjoining Achilles, a Japanese corporation, from proceeding with its lawsuit filed in the sovereign nation of Japan, the majority appears to rely primarily on the duplicative nature of the Japanese suit and the resulting “unwarranted inconvenience, expense, and vexation.”6 The inconvenience, expense and vexation, however, are factors likely to be present whenever there is an exercise of concurrent jurisdiction by a foreign court. Sea Containers Ltd. v. Stena AB, 890 F.2d 1205, 1213-14 (D.C.Cir.1989). The majority’s standard can be understood to hold, therefore, that “a duplication of the parties and issues, alone, is sufficient to justify a foreign antisuit injunction.” Gau Shan Co., 956 F.2d at 1353; see also Laker Airways, 731 F.2d at 928 (concluding that this rationale “is prima facie inconsistent with the rule permitting parallel proceedings in concurrent in personam actions”). Under this standard, concurrent jurisdiction involving a foreign tribunal will rarely, if ever, withstand the request for an antisuit injunction.
By focusing on the potential hardship to Kaepa of having to litigate in two forums,7 *632the majority applies an analysis that is more appropriately brought to bear in the context of a motion to dismiss for forum non conveniens.8 See Laker Airways, 781 F.2d at 928. Considerations that are appropriate in deciding whether to decline jurisdiction are not as persuasive when deciding whether to deprive another court of jurisdiction. “The policies of avoiding hardships to the parties and promoting the economies of consolidation litigation ‘do not outweigh the important principles of comity that compel deference and mutual respect for concurrent foreign proceedings. Thus, the better rule is that duplication of parties and issues alone is not sufficient to justify issuance of an antisuit injunction.’ ” Gau Shan Co., 956 F.2d at 1355 (quoting Laker Airways, 731 F.2d at 928); see also China Trade & Dev. Corp. v. M.V. Choong Yong, 837 F.2d 33, 36 (2nd Cir.1987); Compagnie des Bauxites de Guinea v. Insurance Co. of N. Am., 651 F.2d 877, 887 (3d Cir.1981), aff'd on other grounds sub nom. Insurance Corp. of Ireland, Ltd. v. Compagnie des Bauxites de Guinee, 456 U.S. 694, 102 S.Ct. 2099, 72 L.Ed.2d 492 (1982). A dismissal on grounds of forum non conve-niens by either court in this case would satisfy the majority’s concern with avoiding hardship to the parties, without harming the interests of international comity.9 The district court is not in a position, however, to make the forum non conveniens determination on behalf of the Japanese court. In light of the important interests of international comity, the decision by a United States court to deprive a foreign court of jurisdiction must be supported by far weightier factors than would otherwise justify that court’s decision to decline its own jurisdiction on forum non conveniens grounds.
.C
Accordingly, I believe that the standard followed by the Second, Sixth, and D.C. Circuits more satisfactorily respects the principle of concurrent jurisdiction and safeguards the important interests of international comity. Under this stricter standard, a district court should look to only two factors in determining whether to issue an antisuit injunction: (1) whether the foreign action threatens the jurisdiction of the district court; and (2) whether the foreign action was an attempt to evade important public policies of the district court.10 Gau Shan Co., 956 F.2d at 1355; China Trade, 837 F.2d at 36; Laker Airways, 731 F.2d at 927. Neither of these factors are present in this case.
“Courts have a duty to protect their legitimately conferred jurisdiction to the extent necessary to provide full justice to litigants.” Laker Airways, 731 F.2d at 927. Where the concurrent proceeding effectively threatens to paralyze the jurisdiction of the court, or where the foreign court is attempting to carve out exclusive jurisdiction over the action, an antisuit injunction may legitimately be necessary to protect the court’s jurisdic*633tion. In those rare eases where the foreign action is interdictory rather than parallel, the issuance of an antisuit injunction is primarily a defensive action not inconsistent with the principles of international comity. The court in Laker Airways affirmed the issuance of an antisuit injunction where the foreign action “was instituted by the foreign defendants for the sole purpose of terminating the United States claim.” Id. at 915. In fact, the British Court of Appeals had enjoined the plaintiff from pursuing its claims against British defendants in a United States court under United States law. Id. Significantly, the United States district court in Laker Airways also made clear that its injunction was intended solely to protect its jurisdiction by preventing the defendants from taking any action before a foreign court or governmental authority that would interfere with the litigation pending before the district court. Id. at 919. The injunction was not intended to prevent all concurrent proceedings in foreign courts, only those which directly threatened the district court’s jurisdiction. There is no evidence in this case that Achilles’ action in Japan in any way threatens the district court’s exercise of its concurrent jurisdiction. While the Japanese action may eventually proceed to a judgment which can be pled as res judicata in the district court, no attempt has been made to carve out exclusive jurisdiction on behalf of the foreign tribunal.11
As an example of where a court may need to act in order to protect its jurisdiction, a long-standing exception to the rule tolerating concurrent jurisdiction has been recognized for proceedings in rem or quasi in rem. China Trade, 837 F.2d at 36.12 Because the second action may pose an inherent threat to the court’s basis for jurisdiction, an antisuit injunction may be appropriate in an in rem or quasi in rem proceeding. Id. “Where jurisdiction is based on the presence of property within the court’s jurisdictional boundaries, a concurrent proceeding in a foreign jurisdiction poses the danger that the foreign court will order the transfer of the property out of the jurisdictional boundaries of the first court, thus depriving it of jurisdiction over the matter. This concern of course is not present in this in personam proceeding.” Gau Shan Co., 956 F.2d at 1358. Likewise, this concern is not present in the current in personam proceeding, the focus of which is a distribution agreement. I note that In re Unterweser Reederei, Gmhh, relied on by the majority, was an in rem proceeding, justifying the more permissive standard applied to the issuance of an antisuit injunction in that case.13
*634Under the second factor of the stricter standard, an antisuit injunction may also be appropriate where a party seeks to evade important policies of the forum by bringing suit in a foreign court. Gau Shan Co., 956 F.2d at 1357. “While an injunction may be appropriate when a party attempts to evade compliance with a statute of the forum that effectuates important public policies, an injunction is not appropriate merely to prevent a party from seeking ‘slight advantages in the substantive or procedural law to be applied in a foreign court.’ ” China Trade, 837 F.2d at 37 (quoting Laker Airways, 731 F.2d at 931, n. 73).14 The policy favoring the resolution in a single lawsuit of all disputes arising out of a common matter does not, as noted earlier, outweigh the important interests of international comity. Rather, the principle enunciated under the second factor is “similar to the rule that a foreign judgment not entitled to full faith and credit under the Constitution will not be enforced within the United States when contrary to the crucial public policies of the forum in which enforcement is requested.” Laker Airways, 731 F.2d at 931. Under this principle, a court is not required to give effect to a judgment that does violence to the forum’s own fundamental interests. Id. Since the issuance of an antisuit injunction is a much greater and more direct interference with a foreign country’s judicial process than is the refusal to enforce a judgment, it follows that an antisuit injunction should only be issued in the most extreme circumstances. Although the majority questions the purity of Achilles’ motives in filing suit in Japan, there is no evidence that Achilles is attempting to evade any important policy of the United States forum.
II
Because neither factor supports the issuance of an antisuit injunction in this case, I believe the district court abused its discretion by enjoining Achilles from prosecuting an action filed in Japan. Accordingly, I respectfully dissent.

. As one commentator has observed:
Comity has been defined variously as the basis of international law, a rule of international law, a synonym for private international law, a rule of choice of law, courtesy, politeness, convenience or goodwill between sovereigns, a moral necessity, expediency, reciprocity or considerations of high international politics concerned with maintaining amicable and workable relationships between nations.
Joel R. Paul, Comity in International Law, 32 Harv.Int'l L.J. 1, 1-2 (1991) (footnotes omitted).

. See Hilton v. Guyot, 159 U.S. 113, 16 S.Ct. 139, 40 L.Ed. 95 (1895), in which the Supreme Court stated:
'‘Comity,” in the legal sense, is neither a matter of absolute obligation, on the one hand, nor of mere courtesy and good will, upon the other. But it is the recognition which one nation allows within its territory to the legislative, executive, or judicial acts of another nation, having due regard both to international duty and convenience, and to the rights of its own citizens or of other persons who are under protection of its laws.
159 U.S. at 163-64, 16 S.Ct. at 143.

. See also Princess Lida of Thurn and Taxis v. Thompson, 305 U.S. 456, 466, 59 S.Ct. 275, 280, 83 L.Ed. 285 (1939) ("[I]t is settled that where the judgment sought is strictly in personam, both the state court and the federal court, having concurrent jurisdiction, may proceed with the litigation at least until judgment is obtained in one of them which may be set up as res judicata in the other.”).

. The Supreme Court in Kline v. Burke Const. Co., 260 U.S. 226, 43 S.Ct. 79, 67 L.Ed. 226 (1922), had the following to say about concurrent jurisdiction:
[A] controversy over a mere question of personal liability does not involve the possession or control of a thing, and an action brought to enforce such a liability does not tend to impair or defeat the jurisdiction of the court in which a prior action for the same cause is pending. Each court is free to proceed in its own way and its own time, without reference to the proceedings in the other court. Whenever a judgment is rendered in one of the courts and pleaded in the other, the effect of that judgment is to be determined by the application of the principles of res adjudicata by the court in which the action is still pending in the orderly *630exercise of its jurisdiction, as it would determine any other question of fact or law arising in the progress of the case. The rule, therefore, has become generally established that where the action first brought is in personam and seeks only a personal judgment, another action for the same cause in another jurisdiction is not precluded.
260 U.S. at 230, 43 S.Ct. at 81.

. As the Sixth Circuit in Gau Shan Co. recognized:
The days of American hegemony over international economic affairs have long since passed. The United States cannot today impose its economic will on the rest of the world and expect meek compliance, if indeed it ever could. The modem era is one of world economic interdependence, and economic interdependence requires cooperation and comity between nations.
Gau Shan Co. v. Bankers Trust Co., 956 F.2d 1349, 1354 (6th Cir.1992). See generally Thomas E. Burke, Case Note, Gau Shan Co. v. Bankers Trust Co.: What Should Be the Role of International Comity in the Issuance of Antisuit Injunctions?, 18 N.C.J.Intl L. & Com.Reg. 475 (1993).

. Cf. In re Unterweser Reederei, Gmbh, 428 F.2d 888, 890, 896 (5th Cir.1970) (affirming issuance of antisuit injunction where "allowing simultaneous prosecution of the same action in a foreign forum thousands of miles away would result in 'inequitable hardship' and 'tend to frustrate and delay the speedy and efficient determination of the cause’ ”), rev’d on other grounds sub nom. M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972); Seattle Totems Hockey Club v. National Hockey League, 652 F.2d 852, 856 (9th Cir.1981) (affirming anti-suit injunction where adjudication in two separate actions was “likely to result in unnecessary delay and substantial inconvenience and expense to the parties and witnesses,” and "could result in inconsistent rulings or even a race to judgment”), cert. denied, 457 U.S. 1105, 102 S.Ct. 2902, 73 L.Ed.2d 1313 (1982).

. I also believe the majority errs by relying on two other factors in this case. The majority reasons that the "clear indications by both parties that claims arising from their contract should be adjudicated in this country” lends support to the conclusion that the district court did not abuse its discretion by enjoining the foreign litigation. The majority reaches this conclusion even though the district court found that the jirrisdictional language in the parties' agreement was permissive of Texas jurisdiction, rather than exclusive. The majority also appears to overlook the fact that this dispute involves experienced and sophisticated businessmen who were perfectly capable of negotiating an exclusive forum clause had they desired one. See M/S Bremen v. Zapata, 407 U.S. 1, 12-13, 92 S.Ct. 1907, 1914, 32 L.Ed.2d 513 (1972) ("There are compelling reasons why a freely negotiated private international agreement, unaffected by fraud, undue influence, or overweening bargaining power, such as that involved here, should be given effect.”). Therefore, if anything, the district court's action — in reserving exclusive jurisdiction over this suit — runs directly counter to the parties’ intentions, as evinced by their freely negotiated contract. Cf. id. ("The expansion of American business and industiy will hardly be encouraged if, notwithstanding solemn contracts, we insist on a parochial concept that all disputes must be resolved under our laws and in our courts.”). I am also not persuaded by the majority's reliance on the inference that Achilles' actions, by filing their action in Japan some seven or eight months after they were sued in Texas, "smacks of cynicism, harassment, and delay.” See China Trade & Dev. Corp. v. M.V. Choong Yong, 837 F.2d 33, 34-35 (2nd Cir.1987) (vacating injunction even though second suit was filed almost two-and-a-half years after initial suit); Compagnie des Bauxites de Guinea v. Insurance Co. of N. Am., 651 F.2d 877, 880, 887 (3d Cir.1981) (vacating injunction even though second suit was filed almost four years later). I do not believe that Achilles' impure motives, if any, should outweigh the important interests of international comity at issue in this case. Cf. Donovan v. City of Dallas, 377 U.S. 408, 415, 84 S.Ct. 1579, 1583, 12 L.Ed.2d 409 (1964) (Harlan, J., dissenting) (disagreeing with the majority's holding that the state court was without power to enjoin federal court proceedings even though the suit was found to be vexatious and harassing).

. On the doctrine of forum non conveniens, see Piper Aircraft Co. v. Reyno, 454 U.S. 235, 258-61, 102 S.Ct. 252, 267-68, 70 L.Ed.2d 419 (1981).

. On the issue of forum non conveniens, I note that this case involves a dispute between an American company and a Japanese company over an exclusive distributorship agreement covering the Japanese shoe market. Many of the third-parly witnesses are located in Japan. Moreover, the district court found that Japan would be "an adequate forum" for both parties, and rejected Kaepa’s argument that a Japanese court would not treat Kaepa with the same impartiality that would be shown to Achilles in an American court.

. I note that we are required to apply a similarly strict standard in tolerance of concurrent state court proceedings. See 28 U.S.C. § 2283 (“A court of the United States may not grant an injunction to stay proceedings in a State court except as expressly authorized by Act of Congress, or where necessary in aid of its jurisdiction, or to protect or effectuate its judgments.”) (emphasis added). Section 2283 "does not allow a federal court to enjoin state proceedings to protect a judgment that the federal court may make in the future but has not yet made.” Laker Airways Ltd. v. Sabena, Belgian World Airlines, 731 F.2d 909, 929 n. 59 (D.C.Cir.1984) (internal quotation marks omitted). In addition, Fed R.CivP. 13(a) had been held inapplicable in this context, and accordingly, “a federal court is barred by § 2283 from enjoining a party from proceeding in state court on a claim that should have been pleaded as a compulsory counterclaim in a prior federal suit." Seattle Totems Hockey Club v. National Hockey League, 652 F.2d 852, 855 n. 5 (9th Cir.1981). This rule of restraint and respect regarding state court proceeding should apply with even greater force in the context of foreign tribunals.

. See Gau Shan Co. v. Bankers Trust Co., 956 F.2d 1349, 1354 (6th Cir.1992) (concluding that the possibility that a foreign ruling might result in the voluntary dismissal of the suit was merely a threat to the plaintiff’s interest in prosecuting its suit, and was not a threat to the jurisdiction of the United States court).

. See also Donovan, 377 U.S. at 412, 84 S.Ct. at 1582 (citing Princess Lida of Thurn and Taxis v. Thompson, 305 U.S. 456, 59 S.Ct. 275, 83 L.Ed. 285 (1939)).

. The other Fifth Circuit precedent relied on by the majority is equally distinguishable and does not control the outcome in this case. See Bethell v. Peace, 441 F.2d 495 (5th Cir.1971). The panel in Bethell reviewed an antisuit injunction that was issued only after a judgment had been entered upon a motion for summary judgment. 441 F.2d at 496. In affirming the issuance of the injunction, the Fifth Circuit panel also relied on the "power of a court of equity of one state to restrain its own citizens from prosecuting actions in a sister state when such actions serve to vex, harass, or oppress an opponent." Id. at 498 (emphasis added). The panel did not discuss the interests of international comity.
The majority purports not to be persuaded by the distinctions I identify in Bethell and Unter-weser. They are, however, distinctions that make all the difference under the appropriate standard for evaluating antisuit injunctions. The issuance of an antisuit injunction after judgment or in an in rem proceeding falls under a well-recognized exception to the otherwise strict standard articulated by the Second, Sixth and D.C. Circuits. See China Trade, 837 F.2d at 36 (recognizing long-standing exception to usual rule tolerating concurrent proceedings for proceeding in rem or quasi in rem); Laker Airways, 731 F.2d at 928 (concluding that "a court may freely protect the integrity of its judgments by preventing their evasion through vexatious or oppressive relit-igation,” and citing Bethell for this proposition). Given the procedural posture in Bethell and Un-terweser, the permissive "standard” applied in these cases is entirely consistent with the strict standard I am proposing today. Therefore, contrary to what the majority asserts, adopting the strict standard for evaluating the issuance of antisuit injunctions in the Fifth Circuit would not require us to overrule any prior decision by this Court.

. See also Laker Airways, 731 F.2d at 931 n. 73 ("An impermissible evasion is much more likely to be found when the party attempts to elude compliance with a statute of specific applicability upon which the party seeking an injunction may have relied and which is designed to effectuate important state policies.”).