Gemini Capital Group, Inc. v. Yap Fishing Corp.

Plaintiffs brought this action in the district court against former business associates and governmental agencies in a dispute arising out of an international venture in the tuna industry. The court dismissed the action on grounds of forum non conveniens, in favor of the courts of the State of Yap, of the Federated States of Micronesia (FSM). Plaintiffs appeal, contending that the district court erred as a matter of law and abused its discretion in dismissing the action. We affirm.

Plaintiffs, with others interested in the development of a tuna fishery in the Western Pacific, negotiated with various governmental agencies of the State of Yap. In July, 1990, Plaintiffs and Defendants, together with other entities not parties to this litigation, entered into, a written statement of intent to form a fishing venture with Gemini Capital Group to manage the venture’s fleet of fishing vessels from an office to be established in the State of Yap. In September, 1990, pursuant to the statement of intent, the government of Yap, Plaintiff IDP, a California corporation, and nonparties Kingfisher Holdings, Ltd. and Citipae, formed Yap Fishing Corporation (YFC). The agreement contained choice of…