Anti-Suit Injunction

• Author: International Law Group
• Pages: 186-187

In 1996, Canon Latin America, Inc. ("Canonlat"), a Florida corporation, agreed with Lantech (C.R.), S.A. ("Lantech") of Costa Rica regarding the distribution of Canon products in Costa Rica. This agreement was superseded in 2003 by a distribution agreement ("Agreement") that made Lantech the non-exclusive distributor of Canon brand products in Costa Rica. The Agreement included a forum selection and a choice of law clause designating Florida.

In 2004, Lantech started falling behind on its payments to Canonlat, and Canonlat appointed Santa Barbara Technology, S.A. ("SB Technology") as an additional distributor.

Lantech, without a warning, then filed suit in Costa Rica against Canonlat and SB Technology for violations of Costa Rica Public Law 6209 (Representatives of Foreign Companies Act). A Costa Rican court demanded that Canonlat post a $1 million bond or discontinue selling goods in Costa Rica. Eventually, Canonlat posted the bond and sought to have the Costa Rican lawsuit dismissed for lack of jurisdiction. Canonlat also terminated the Agreement with Lantech for Lantech's failure to pay for the Canon products.

In February 2005, Canonlat brought the present lawsuit against Lantech in the Southern District of Florida, seeking an injunction against Lantech's Costa Rican lawsuit.

The district court granted Canonlat a permanent injunction, barring Lantech from proceeding with its case in Costa Rica. Lantech appeals the district court's order, claiming that the threshold requirements for an anti-suit injunction are not met.

The U.S. Court of Appeals for the Eleventh Circuit, in a per curiam opinion, vacates the injunction and remands the case for dismissal of Canonlat's outstanding claims.

Federal courts have some power to enjoin foreign lawsuits by persons subject to federal court jurisdiction. In this case, Lantech alleges that the requirements for an anti-suit injunction are not met. The Court agrees. An anti-suit injunction may issue only if:

"(1) 'the parties are the same in both [the foreign and domestic lawsuits],' and (2) 'resolution of the case before the enjoining court is dispositive of the action to be enjoined.' ... [Paramedics Electromedicina Comercial, Ltda. v. GE Med. Sys. Info. Techs., Inc., 369 F.3d 645, 652 (2d Cir. 2004)] ... Once these threshold requirements are satisfied, courts must then consider additional factors to determine whether an injunction is...