Forum Selection-Contracts

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7^th Circuit Court of Appeals

Case Name: In re Application of Venequip, S.A. v. Caterpillar Inc.

Case No.: 22-1463

Officials: Sykes, Chief Judge, and Rovner and Jackson -Akiwumi, Circuit Judges.

Focus: Forum Selection-Contracts

Venequip, a supplier of heavy equipment based in Venezuela, used to sell and service products manufactured by Caterpillar, a company headquartered in Illinois. Venequip’s dealership was governed by sales and service agreements with CAT Sàrl, a Swiss subsidiary of Caterpillar. In 2019, CAT Sàrl terminated the dealership. These agreements contained clauses stipulating that any disputes should be resolved in Swiss courts under Swiss law. In 2021, Venequip initiated contract claims against CAT Sàrl in Geneva, Switzerland.

Venequip also filed applications in various U.S. jurisdictions under 28 U.S.C. 1782(a), which grants district courts the authority (but not the obligation) to order individuals residing or located within the district to provide testimony or documents for use in proceedings before foreign or international tribunals. In the Northern District of Illinois, Venequip requested extensive discovery from Caterpillar.

Regarding Venequip’s application, the district judge considered the four factors outlined by the Supreme Court in Intel, which typically address the applicant’s need for discovery, the extent of the request’s intrusiveness, comity considerations, as well as the parties’ contractual choice of forum and law, and Caterpillar’s willingness to provide discovery in the Swiss court. The judge ultimately denied the application. The Seventh Circuit upheld this decision. Importantly, the appeal was not rendered irrelevant by subsequent developments in the Swiss court. The judge appropriately balanced the Intel factors and other relevant factors when making the decision.

Affirmed.

Decided 10/10/23

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