Borden, Inc. v. Meiji Milk Products Co.
United States Court of Appeals for the Second Circuit
919 F.2d 822 (1990)
- Written by Mary Katherine Cunningham, JD
Facts
Borden, Inc. (Borden) (plaintiff), a New Jersey corporation, was a corporation that manufactured dairy products. Meiji Milk Products Co. (Meiji) (defendant), a Japanese corporation, engaged in dairy manufacturing. In 1983, Borden and Meiji entered an agreement where Borden licensed the use of its name and logo to Meiji to use on its margarine products in Japan for seven years. The agreement provided that the parties would refer all disputes to arbitration under the Japanese-American Trade Arbitration Agreement. In August 1990, Borden filed a demand for arbitration, alleging that Meiji unfairly competed with Borden by using the packaging. While the parties attempted to determine where arbitration would occur, Borden commenced a lawsuit seeking to compel arbitration. After the agreement expired in October 1990, Meiji continued to market margarine in Japan in the packaging it had used while the agreement was in force without any use of Borden trademark. Borden subsequently sought a preliminary injunction against Meiji’s use of the disputed packaging. The district court therefore refused to grant a preliminary injunction, instead dismissing the suit for forum non conveniens. Borden appealed to the Second Circuit, arguing that the district court erred because Meiji failed to demonstrate the availability of an adequate Japanese remedy. Borden argued that the district court failed to recognize the limited, emergency nature of its proposed preliminary injunction in aid of arbitration. Borden further argued that there is no provision for a similar remedy in Japan when the arbitration is pending outside Japan.
Rule of Law
Issue
Holding and Reasoning (Timbers, J.)
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