Proceedings Concerning the Constitutional Complaint of L … GmbH

A limited-liability company (the LLC) (plaintiff) established in Berlin had a subsidiary United States corporation (the subsidiary). The subsidiary and Traditional Medicinals, Inc., entered a distribution contract for pharmaceuticals. After issues arose from the distribution relationship, Traditional Medicinals sued both the LLC and the United States subsidiary, seeking punitive damages. Traditional Medicinals served the subsidiary in the United States but was unable to serve the LLC. Traditional Medicinals requested that the Governmental Administration for Justice (the GAJ) in Berlin serve the LLC under the terms of the Hague Service Convention (the convention). The GAJ agreed to assist and sent Traditional Medicinals’ complaint to the local court. The LLC filed an action in the Berlin Court of Appeal requesting that the court lift the GAJ order for judicial assistance. The court of appeal rejected the request, and the LLC appealed to the German Federal Constitutional Court. The LLC argued that the order granting Traditional Medicinals judicial assistance in serving the LLC violated the LLC’s civil rights under German Basic Law, that the court of appeal failed to consider the fact that punitive damages violate fundamental principles of German law, and that German authorities may not assist with a foreign proceeding if the judgment sought conflicts with German law, even if that assistance is only related to initiating the action.