Alexander Lawrence and David Hambrick authored an article for Law360 covering a recent decision from the U.S. District Court for the Southern District of Florida that changes the way courts use Section 1782 for discovery.
“Tortious interference with exclusive distribution rights is a familiar fact pattern in many jurisdictions,” the authors wrote. “So, too, is the strategy Motransa contemplated – challenging the third-party infringer in national courts with evidence obtained pursuant to Section 1782 as ammunition. For litigants hoping for U.S.-style discovery in such disputes, Motransa serves as a cautionary tale. Going forward, it gives suppliers a new tool for resisting such applications.”
They added that the case “also teaches a more general lesson: for any contracting party eager to avoid U.S.-style discovery or those who prefer the efficiency advantages of arbitration, it is now clear that a well-crafted delegation clause in an arbitration provision can provide a powerful tool in responding to Section 1782 discovery applications.”
Read the full article.