Tōhō K.K. v. Hachitsuka

16 Kakyū minshū (No. 5) 923 (1965)

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Tōhō K.K. v. Hachitsuka

Tokyo District Court
16 Kakyū minshū (No. 5) 923 (1965)

Facts

Tōhō K.K. (Tōhō) (plaintiff) was a Japanese film company. Tōhō sent an employee, Yonemoto (plaintiff), to California to examine the financial status of Tōhō’s California subsidiary, Toho International (Toho) (plaintiff). After discovering that Toho was not doing well financially, Tōhō reassigned Yonemoto to work in California. Yonemoto was introduced to Chieko Hachitsuka (defendant), a California resident, who assisted Yonemoto financially and with English translation. With Hachitsuka’s assistance, Yonemoto and other film producers began negotiations for a joint venture intended to import a film to Japan and to secure the distribution and screen rights of the film in Japan. After the negotiations failed, Hachitsuka sued Yonemoto, Tōhō, and Toho in California for breach of contract and fraud, alleging that Hachitsuka had sustained certain damages in Japan. Yonemoto, Tōhō, and Toho then filed a declaratory-judgment action in Japan, asking the Japanese court to decide that Yonemoto, Tōhō, and Toho were not liable to Hachitsuka for the alleged tort of fraud.

Rule of Law

Issue

Holding and Reasoning (Nishiyama, J.)

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