Northcon I v. Mansei Kōgyō K.K

11 July 1997, 51 Saiko Saibansho Minji Hanreishu 2573; 51 Minshū 2573 (1997)

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Northcon I v. Mansei Kōgyō K.K

Japan Supreme Court
11 July 1997, 51 Saiko Saibansho Minji Hanreishu 2573; 51 Minshū 2573 (1997)

Facts

Northcon I (Northcon) (plaintiff), an Oregon partnership, was formed to develop a facility for a California corporation, Maruman Integrated Circuits, Inc. (Maruman) (defendant). Maruman was a subsidiary of a Japanese corporation, Mansei Kogyo Co. (Mansei) (defendant). A dispute between Northcon and Maruman arose, and Maruman sued Northcon in the California Superior Court. Northcon cross-complained against Mansei and Maruman and their respective officers. Northcon prevailed at trial, receiving a judgment of $425,251 in compensatory damages and $1,250,000 in punitive damages plus costs. Maruman and Mansei appealed, but the California appellate court affirmed the judgment. Northcon then filed an action in the Tokyo District Court seeking to enforce the judgment against Mansei and its officers in Japan. The district court enforced the judgment regarding compensatory damages but rejected the award of punitive damages because the award was against Japan’s public policy. Both parties appealed to the Tokyo High Court, which affirmed the district court’s decision. Northcon appealed to the Japan Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Per curiam)

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