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EMC Corp. v. Petter

Citations: 104 F. Supp. 3d 127; 2015 U.S. Dist. LEXIS 62625; 2015 WL 2233086Docket: Civil Action No. 15-40036-TSH

Court: District Court, D. Massachusetts; May 13, 2015; Federal District Court

Narrative Opinion Summary

The case involves a dispute between a corporation based in Massachusetts and a former high-ranking employee residing in England. The corporation alleges that the employee engaged in detrimental activities by colluding with a competitor, misappropriating confidential information, and breaching contractual obligations under an RSU Agreement, which included a forum selection clause designating Massachusetts courts. The defendant sought to dismiss the case based on lack of personal jurisdiction, unenforceability of the forum selection clause, and forum non conveniens, while also pursuing litigation in the UK. The court denied the motion to dismiss, affirming jurisdiction in Massachusetts and granting summary judgment on the enforceability of the forum selection clause. The court found that the defendant had sufficient contacts with Massachusetts to justify specific jurisdiction and that enforcement of the forum selection clause was reasonable, as it did not violate public policy, despite the potential inconvenience to the defendant. The decision underscores the validity of forum selection clauses and the reluctance to disturb a plaintiff's choice of forum when such clauses are present, ensuring the case proceeds in Massachusetts courts.

Legal Issues Addressed

Contracts of Adhesion and Public Policy

Application: The court held that the forum selection clause within the potentially adhesive Stock Plan did not violate Massachusetts public policy, supporting its enforceability.

Reasoning: The court determines that while the Stock Plan may be a 'contract of adhesion,' this does not violate Massachusetts public policy; thus, the forum selection clause is legally enforceable.

Enforceability of Forum Selection Clauses

Application: The court determined that the forum selection clause in the EMC Corporation Amended and Restated 2003 Stock Plan is enforceable, as the Defendant did not demonstrate that enforcement would be unreasonable.

Reasoning: Forum selection clauses are generally enforceable unless the resisting party can demonstrate that enforcement would be unreasonable.

Forum Non Conveniens Doctrine

Application: The court rejected the Defendant's motion to dismiss based on forum non conveniens, emphasizing that the Plaintiff's choice of forum should not be disturbed lightly, particularly when a forum selection clause is present.

Reasoning: The burden of proof for a motion to dismiss based on forum non conveniens lies with the party seeking dismissal, who must demonstrate that an alternative, adequate forum is available and that convenience and judicial efficiency favor that forum.

Personal Jurisdiction Over Non-Resident Defendants

Application: The court found sufficient contacts between the Defendant and Massachusetts to justify specific jurisdiction, noting the Defendant's engagement with Massachusetts law through a forum selection and choice-of-law clause.

Reasoning: Plaintiff has demonstrated that Defendant has sufficient contacts with Massachusetts to justify the court's exercise of specific jurisdiction.

Summary Judgment on Jurisdictional Issues

Application: The court granted summary judgment on Count Four, affirming the enforceability of the jurisdictional clause, as no material factual disputes existed regarding the clause.

Reasoning: No material factual disputes exist regarding this clause, leading to a summary judgment in favor of Plaintiffs on Count Four.