Intercontinental Industries Corp. v. Wuhan State Owned Industrial Holdings Co.

MEMORANDUM

Plaintiff Intercontinental Industries Corporation brought this action against Defendants Wuhan State Owned Industrial Holdings Company and Hubei Province Government in the Central District of California, alleging fraud, RICO violations, cancellation of contract due to fraud and duress, and breach of contract. Plaintiff appeals the district court’s judgment dismissing Plaintiffs First Amended Complaint (“FAC”) for lack of subject matter jurisdiction and venue, and denying Plaintiffs requests for leave to amend and to pursue jurisdictional discovery. Specifically, Plaintiff argues that (1) the district court had subject matter jurisdiction pursuant to the commercial activity exception of the Foreign Sovereign Immunities Act (“FSIA”), 28 U.S.C. § 1605 (a)(2); and (2) the forum selection clause that the district court enforced, which named Chinese courts as the exclusive venue for all litigation arising from the contract, was invalid.

We have jurisdiction under 28 U.S.C. § 1291 , and we reverse and remand for further proceedings consistent with this disposition.

1. We review de novo a dismissal for lack of jurisdiction under the FSIA. See Terenkian v. Republic of Iraq,…