Folex Golf Industries v. O-Ta Precision Industries Co.

MEMORANDUM

Folex Golf Industries, Inc. (“Folex”) appeals the district court’s summary judgment in favor of O-TA Precision Industries Co., Ltd. (“O-TA”) in Folex’s suit for damages and declaratory relief (No. 18-55643). O-TA appeals the district court’s order denying its motion for attorney’s fees (No. 13-56331). We reverse in part and vacate in part.

Folex and Luoyang Ship Material Research Institute (“LSMRI”) entered into an agency agreement later supplemented by an addendum (hereafter “Agreement”). O-TA was introduced to LSMRI by Folex and became a customer of LSMRI. Ultimately LSMRI filed an action against Fo-lex in a court in the People’s Republic of China (“PRC”), and obtained a default judgment against Folex that dissolved the Agreement. In the meantime, Folex brought this action against O-TA. After the PRC judgment issued, the district court granted summary judgment to O-TA on the basis that by applying international comity, the PRC judgment against Folex would be recognized in California and would have collateral estoppel effect.

(1) Folex asserts that due to a lack of proper service of the PRC action upon it, California would not recognize the judgment. We agree…