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Illinois Tool Works v. Sierracin Corp.

OPINION FILED JUNE 3, 1985.

ILLINOIS TOOL WORKS, INC., PLAINTIFF-APPELLANT,

v.

SIERRACIN CORPORATION, DEFENDANT-APPELLEE.



Appeal from the Circuit Court of Cook County; the Hon. Arthur L. Dunne, Judge, presiding. JUSTICE BUCKLEY DELIVERED THE OPINION OF THE COURT:

Plaintiff Illinois Tool Works, Inc. (ITW), brought an action in the circuit court of Cook County seeking a declaratory judgment that a contract for the purchase of goods from defendant Sierracin Corporation (Sierracin) was voidable by reason of duress. Upon Sierracin's motion, the trial court dismissed the action on the basis of forum non conveniens. The court subsequently denied ITW's motion to reconsider that ruling, and ITW now appeals. For the following reasons, we affirm.

The record reveals that ITW is a Delaware corporation with its principal place of business in Illinois. Defendant Sierracin is a Delaware corporation with its principal place of business in California. Sierracin is neither incorporated in Illinois, nor is it licensed to do business in Illinois. On or about March 30, 1982, the parties entered into a contract whereby Sierracin agreed to supply certain "flex circuits" to ITW. The flex circuits were used by ITW to produce an electric switch for Eastman Kodak Company (Kodak). Kodak utilized the switches in its new disc cameras. ITW was Kodak's sole supplier of the switches. Sierracin, in turn, was ITW's sole supplier of the flex circuits necessary to produce the switches.

The initial contract between ITW and Sierracin provided for the purchase of 1,000,000 circuits at a price of $.72 per unit. Shortly thereafter, the quantity of switches was increased to 1,510,000, but the $.72 price per unit remained unchanged.

On September 30, 1982, a meeting was held at the Chicago O'Hare Hilton between representatives of ITW and Sierracin. Attending the meeting were: (1) Robert Brannon, ITW's representative; (2) Andy Loughlin, Sierracin's local sales representative; and (3) Joseph Rivlin, the president of Sierracin. ITW alleges that at this meeting Rivlin threatened that Sierracin would cut off all further shipments of the flex circuits unless ITW agree to a higher price schedule. Specifically, ITW alleges that Sierracin demanded $1.25 per unit for the next 300,000 circuits, $.98 per unit for the following 300,000 circuits, and $.85 per unit for all circuits supplied thereafter.

ITW further alleges that during the period immediately prior to the meeting Kodak told ITW that it was losing sales because of a shortage of electrical switches and pressured ITW to increase production. ITW maintains that Sierracin had knowledge of the pressure from Kodak and therefore demanded the higher prices.

On October 1, 1982, the day after the O'Hare Hilton meeting, ITW mailed to Sierracin a purchase order for 300,000 flex circuits at $1.25 per unit. ITW received the circuits under this purchase order, but later refused to pay the $1.25 per unit price. Instead, ITW sent Sierracin a check, calculated on the basis of a $.72 per unit price, as full payment for the goods. Sierracin threatened to bring suit against ITW unless it received payment based on the $1.25 per unit price.

On December 23, 1983, ITW filed an action seeking a judgment declaring, inter alia, (1) that it acted under duress in capitulating to the $1.25 per unit price, and (2) that any agreement under these circumstances was voidable. In response, counsel for Sierracin filed a special and limited appearance for the purpose of moving that the circuit court decline jurisdiction and dismiss the action on the basis of forum non conveniens. In its motion and supporting documentation, Sierracin denied threatening to discontinue production of the flex circuits unless ITW agreed to the higher price. Sierracin also asserted that the underlying issue in this case concerned more than what transpired at the O'Hare Hilton meeting, but rather involved numerous persons, meetings, and activities in California which led to and followed the entry of the contract which ITW now seeks to void. Sierracin concluded in its motion that California, and not Illinois, is the more appropriate forum in which to litigate this matter.

Following a hearing, the trial court granted Sierracin's motion to dismiss on the basis of forum non conveniens. The court reasoned that Joseph Rivlin was a crucial witness in this case and would not be subject to compulsory process if the case were litigated in Illinois. Rivlin resides in California, is no longer employed by Sierracin and in fact left Sierracin on unpleasant terms.

ITW filed a motion to reconsider the dismissal. Attached to the motion was an affidavit by Rivlin indicating that he "would be willing to appear in Illinois" to testify in the matter if his expenses were reimbursed. The trial court, after again hearing arguments, ultimately denied the motion to reconsider and allowed its prior ruling on the motion forum non conveniens to stand.

• 1, 2 On appeal, the issue presented is whether the trial court correctly dismissed the instant action on the basis of forum non conveniens.

Forum non conveniens is a doctrine founded in consideration of fundamental fairness and sensible and effective judicial administration. (Adkins v. Chicago, Rock Island & Pacific R.R. Co. (1973), 54 Ill.2d 511, 514, 301 N.E.2d 729.) This doctrine assumes the existence of at least two forums in which the defendant is amenable to jurisdiction. (Jones v. Searle Laboratories (1982), 93 Ill.2d 366, 371, 444 N.E.2d 157.) In applying the doctrine, the inquiry therefore focuses upon the relative convenience and fairness of the forums having jurisdiction. Foster v. Chicago & North Western Transportation Co. (1984), 102 Ill.2d 378, 382, 466 N.E.2d 198.

The relevant factors, both private and public, which must be considered in determining the most convenient forum were set out by the United States Supreme Court in Gulf Oil Corp. v. Gilbert (1947), 330 U.S. 501, 91 L.Ed. 1055, 67 S.Ct. 839. The private interest factors include the ease of access to sources of proof, the availability of compulsory process to secure the attendance of unwilling witnesses, the cost of obtaining the attendance of willing witnesses, the possibility of a view of the site of the occurrence and the convenience of the parties. Factors of public interest to be considered are the imposition of jury service on the residents of the community, the congestion of the court dockets, the need to apply the law of a foreign jurisdiction and the interest in having local controversies decided at home. 330 U.S. 501, 508-09, 91 L.Ed. 1055, 1062-63, 67 S.Ct. 839, 843.

After balancing the foregoing factors, the court may decline to exercise jurisdiction when it finds that another forum can better serve the ends of justice and the convenience of the parties. (Adkins v. Chicago, Rock Island & Pacific R.R. Co. (1973), 54 Ill.2d 511, 514, 301 N.E.2d 729.) The trial court has broad discretion in deciding whether a case should be dismissed based upon forum non conveniens. (Moore v. Chicago & North Western Transportation Co. (1983), 99 Ill.2d 73, 77, 457 N.E.2d 417.) On review, the only consideration is whether the trial court's decision constitutes an abuse of discretion, and not whether the reviewing court would have resolved the issue in the same manner as the trial court. 99 Ill.2d 73, 83.

• 3 In the case before us, we cannot conclude that the trial court abused its discretion. The trial court found that Rivlin was a "key figure" and a "crucial witness" in this case. We agree with this finding. It is Sierracin's defense in this suit that, contrary to ITW's assertion, Rivlin at no time threatened to stop production of the flex circuits unless ITW agreed to the higher price. The record indicates that Rivlin resides in California and is no longer president of Sierracin, having separated from the company on ...


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