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Pryor Cashman Wins Dismissal of International Breach of Contract Case in Eastern District of New York

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On September 20, 2011, the federal District Court for the Eastern District of New York granted Pryor Cashman client Unilux AG’s motion to dismiss a $6 million dollar suit against it by a U.S plaintiff. 

Pryor Cashman attorneys James S. O’Brien Jr. and Ross M. Bagley argued that the contract at issue and the attached terms and conditions mandated that German law applied, and that under German law, the forum selection clauses did not merely state that Germany would have jurisdiction over any dispute but, rather, that any suit against Unilux must be litigated in Germany. O’Brien and Bagley were assisted by Juergen R. Ostertag, the head of Pryor Cashman German Practice Group.

Opposing counsel argued that German law did not apply and that the forum selection clause was merely permissive and did not require the case to be litigated outside of the United States. Both parties submitted opinions of experts in German law.

Rejecting plaintiff’s arguments U.S. District Court Judge Brian Cogan adopted Pryor Cashman’s arguments and found that German law applied and that under German law the breach of contract claims must be litigated in Germany because the forum selection clause was exclusive, and that plaintiff was foreclosed from bringing suit against Unilux in America. 

To read the case's decision in its entirety,  please click here