Radeljak v. Daimlerchrysler Corp.

• Decision Date: 19 July 2006
• Docket Number: Docket No. 127679.,COA No. 8.
• Parties: Josip RADELJAK, Individually, as Personal Representative of the Estate of Ena Begovic, Deceased, and as Next Friend of Lana Radeljak; Leo Radeljak; and Tereza Begovic, Plaintiffs-Appellees, v. DAIMLERCHRYSLER CORP., Defendant-Appellant.
• Court: Michigan Supreme Court

Page 40

719 N.W.2d 40

475 Mich. 598

Josip RADELJAK, Individually, as Personal Representative of the Estate of Ena Begovic, Deceased, and as Next Friend of Lana Radeljak; Leo Radeljak; and Tereza Begovic, Plaintiffs-Appellees, v. DAIMLERCHRYSLER CORP., Defendant-Appellant.

Docket No. 127679.

COA No. 8.

Supreme Court of Michigan.

Argued November 10, 2005.

Decided July 19, 2006.

Sommers Schwartz, P.C. (by B.A. Tyler and James N. McNally), Southfield, for the plaintiffs.

Bush Seyferth Kethledge & Paige P.L.L.C. (by Raymond M. Kethledge), Troy, for the defendant.

Clark Hill P.L.C. (by F.R. Damm and Paul C. Smith), Detroit, for amici curiae Michigan Manufacturers Association.

Plunkett & Cooney, P.C. (by Mary Massaron Ross), Detroit, for amici curiae Michigan Defense Trial Counsel.

Donald M. Fulkerson, Westland, for amici curiae Michigan Trial Lawyers Association.

PER CURIAM.

We granted leave to appeal to consider whether the Wayne Circuit Court abused its discretion in dismissing this case on the basis of the doctrine of forum non conveniens, where plaintiffs are residents and citizens of a foreign country and the lawsuit alleges product liability arising from a motor vehicle accident that occurred outside the United States. The Court of Appeals held that the circuit court abused its discretion in dismissing the case because Wayne County is not a "seriously inconvenient" forum. Because we conclude that the circuit court did not abuse its discretion in dismissing the case, we reverse the judgment of the Court of Appeals and reinstate the circuit court's order dismissing the case.

I. Facts

Plaintiffs, who are residents and citizens of Croatia, were involved in a motor vehicle accident in Croatia. It is alleged that the Jeep Grand Cherokee in which they were seated somehow shifted from park into reverse and went off the roadway and into a ravine. One of the passengers died and the driver and other passengers were injured. The vehicle was designed and manufactured in Michigan. The vehicle was purchased in Italy and maintained and serviced in Italy and Croatia. Plaintiffs argue that the transmission, designed and manufactured in Japan, spontaneously slipped. Plaintiffs filed their lawsuit in the Wayne Circuit Court.

Defendant moved for summary disposition on the basis of forum non conveniens. The circuit court granted the motion. Plaintiffs appealed and the Court of Appeals reversed.¹ We granted defendant's application for leave to appeal and asked the parties to address:

(1) whether the public interest factors of the forum non conveniens doctrine set forth in Cray v. Gen. Motors Corp., 389 Mich. 382, 396 (1973), should be revised or modified; and (2) whether, even if another more appropriate forum exists, a Michigan court may not resist jurisdiction unless its own forum is "seriously inconvenient." See Robey v. Ford Motor Co., 155 Mich.App. 643, 645, 400 N.W.2d 610 (1986).²

II. Standard of Review

This Court reviews a trial court's decision to grant or deny a motion to dismiss a case on the basis of the doctrine of forum non conveniens for an abuse of discretion. Cray, supra at 397, 207 N.W.2d 393. An abuse of discretion occurs when the decision results in an outcome falling outside the principled range of outcomes. Herald Co. v. Eastern Michigan Univ. Bd. of Regents, 475 Mich. 463, 719 N.W.2d 19 (Docket No. 128263 decided July 19, 2006); Novi v. Robert Adell Children's Funded Trust, 473 Mich. 242, 254, 701 N.W.2d 144 (2005).

III. Analysis

"Forum non conveniens" is defined as the "discretionary power of court to decline jurisdiction when convenience of parties and ends of justice would be better served if action were brought and tried in another forum." Black's Law Dictionary (6th ed.). The doctrine is not derived from statutes; rather, it is a common-law doctrine created by courts.³ The United States Supreme Court adopted the forum non conveniens doctrine in 1947. Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 508-509, 67 S.Ct. 839, 91 L.Ed. 1055 (1947).⁴ This Court first recognized this doctrine in 1973 in Cray. In Cray, supra at 395, 207 N.W.2d 393, we held that a court may refuse to hear a case on the basis of the doctrine of forum non conveniens even though it otherwise may have jurisdiction. "The principle of forum non conveniens establishes the right of a court to resist imposition upon its jurisdiction although such jurisdiction could properly be invoked." Id. The application of forum non conveniens "lie[s] within the discretion of the trial judge." Id. A plaintiff's selection of a forum is ordinarily accorded deference. Anderson v. Great Lakes Dredge & Dock Co., 411 Mich. 619, 628-629, 309 N.W.2d 539 (1981). Although "a court can and must consider the residence of the parties in deciding whether to decline jurisdiction[,] . . . a party's Michigan residence does not automatically render the doctrine of forum non conveniens inapplicable." Russell v. Chrysler Corp., 443 Mich. 617, 624, 505 N.W.2d 263 (1993).⁵ "`[T]he ultimate inquiry is where trial will best serve the convenience of the parties [and the ends] of justice.'" Cray, supra at 391, 207 N.W.2d 393, quoting Koster v. (American) Lumbermens Mut. Cas. Co., 330 U.S. 518, 527, 67 S.Ct. 828, 91 L.Ed. 1067 (1947). In Cray we held that the following factors should be considered in deciding a motion to dismiss on the basis of forum non conveniens:

1. The private interest of the litigant.

a. Availability of compulsory process for attendance of unwilling and the cost of obtaining attendance of willing witnesses;

b. Ease of access to sources of proof;

c. Distance from the situs of the accident or incident which gave rise to the litigation;

d. Enforcibility [sic] of any judgment obtained;

e. Possible harassment of either party;

f. Other practical problems which contribute to the ease, expense and expedition of the trial;

g. Possibility of viewing the premises.

2. Matters of public interest.

a. Administrative difficulties which may arise in an area which may not be present in the area of origin;

b. Consideration of the state law which must govern the case;

c. People who are concerned by the proceeding.

3. Reasonable promptness in raising the plea of forum non conveniens. [Cray, supra at 396, 207 N.W.2d 393.]

In the instant case, the trial court dismissed on the basis of forum non conveniens. The trial court determined that Croatia was a more convenient forum because this case involves a vehicular accident in Croatia in which Croatian citizens and residents were injured, where Croatian law will likely have to be applied, and the alleged cause of the accident was a transmission manufactured and designed in Japan. This conclusion does not fall outside "the principled range of outcomes," Novi, supra at 254, 701 N.W.2d 144, and was therefore not an abuse of discretion.

A review of the Cray factors reveals why the trial court's decision to dismiss was within "the principled range of outcomes." Id. We begin by noting that the requirement of reasonable promptness in bringing a plea of forum non conveniens has indisputably been satisfied in this case, because defendant moved for dismissal based on the doctrine of forum non conveniens in a timely manner. With that procedural predicate addressed, we now turn to the private and public interest factors that are in considerable dispute.

The first factor concerns the "private interest of the litigant." Cray, supra at 396, 207 N.W.2d 393. Subfactor 1(a) pertains to the "[a]vailability of compulsory process for attendance of unwilling and the cost of obtaining attendance of willing witnesses." Id. It is undisputed that Michigan courts lack powers of compulsory process over witnesses in Croatia.⁶ If trial were held in Michigan, defendant would be forced to use "letters rogatory" in order to obtain testimony from any foreign witnesses who could not voluntarily travel to Michigan for trial.⁷ The use of letters rogatory is acknowledged to be a very time consuming and cumbersome process.⁸ However, this subfactor cuts the other way as well because it is also undisputed that Croatian courts lack powers of compulsory process over witnesses in Michigan.

Further, even if all the witnesses are willing to travel in order to testify, the cost of obtaining the attendance of these witnesses will be high regardless of whether this case is tried in Croatia or in Michigan; obviously, if this case is tried in Croatia, all the Michigan witnesses will have to travel to Croatia to testify and if this case is tried in Michigan, all the Croatian witnesses will have to travel to Michigan to testify. Therefore, subfactor 1(a) does not clearly favor one forum over the other where the difficulties implicit in the travel arrangements would be identical.

Subfactor 1(b) concerns the "[e]ase of access to sources of proof." Cray, supra at 396, 207 N.W.2d 393. The trial court concluded that, because the accident occurred in Croatia, a Croatian court will have easier access to sources of proof and it will be easier for defendant to obtain documents relating to the accident in Croatia. Although all the documentary evidence pertaining to the choice of transmission for the vehicle is in Michigan, it would be easier for plaintiffs to obtain these Michigan documents if the trial were held in Croatia than it would be for defendant to obtain the Croatian documents if trial were held in Michigan because MCR 2.305 authorizes subpoenas for document production in connection with an action pending in another country and we are aware of no similar Croatian provision, nor have plaintiffs cited any. Therefore, subfactor 1(b) favors the Croatian forum over the Michigan forum.

Subfactor 1(c) concerns the "[d]istance from the situs of the accident or incident which gave rise to the litigation." Cray, supra at 396, 207 N.W.2d 393. Michigan is a great distance from the situs of the accident, i.e., Croatia. However, plaintiffs argue that this is not...