Gould, Inc. v. Health Sciences, Inc.

Plaintiff, Gould, Inc., a corporation, filed a complaint against defendant, Health Sciences, Inc., a corporation, alleging breaches of warranties, fraud and deceit, and negligent misrepresentation. The dispute arose as the result of alleged defects in switches manufactured by defendant in Massachusetts and delivered to plaintiff in California in 1973. Defendant moved to quash service of summons for lack of jurisdiction and to dismiss the action on the ground of forum non conveniens. After considering the affidavits and declarations of the parties, the trial court entered a minute order in which it granted the motion to quash; plaintiff has appealed from that order.

Defendant is a small manufacturing company, incorporated in Delaware but located solely in Woburn, Massachusetts. In 1970, defendant’s president, Joseph J. Pánico, commenced negotiations with Smith, Kline Instruments (hereinafter, SKI) which culminated in the execution of a licensing agreement between defendant and SKI in New Jersey on November 13, 1970. Before the agreement was signed, and afterwards, Pánico came to California to confer with SKI representatives about his product which was the subject of the…