Intel Corp. v. Malaysian Airline System

ORDER REGARDING MOTION TO DISMISS

Defendant Malaysian Airline Systems moves to dismiss this action on the grounds of forum non conveniens The motion was heard and submitted. The court has considered the arguments of counsel, the record, and the applicable authorities.

I.

Plaintiff Intel Corporation (Intel) has sued Malaysian Airline System (MAS) for the loss of cartons of computer chips. Intel ships partially completed computer chips to a Free Trade Zone in Malaysia for processing. After processing, the chips are returned to California by air. Intel shipped the chips at issue here on MAS from Penang, near the Free Trade Zone, to Kuala Lumpur. Another carrier transported the shipment from Kuala Lumpur to California.

Because the chips have a high value, Intel desired strict security measures at each stage of the international journey. Intel alleges that in 1984, Intel and MAS entered into an agreement under which MAS agreed to provide special security measures for the chips. These security measures were followed without incident for the initial four shipments of chips. On the fifth shipment, the one at issue here, MAS allegedly failed to follow the special security procedures…