Sinochem International Co. v. Malaysia International Shipping Corp. Digest

Sinochem International Co. v. Malaysia International Shipping Corp. Digest

549 U.S. 422 (2007)

Facts:

1. Sinochem is a Chinese government-owned company. It contracted with Triorient for Sinochem to purchase steel coils paid by a letter of credit (LC) through the production of a valid bill of lading. It alleged that the respondent backdated the bill of lading and petitioned the Chinese court to arrest the vessel. 

2. Malaysia International (respondent) is a Malaysian company, chartered and subcontracted bu Triorient to transport the steel coils. Sinochem filed the action in a Chinese court. Malaysia Int'l filed an action in the US citing Sinochem's petition for preservation allegedly contained misrepresentation.. The US districtcourt however dismissed on the ground of forum non conveniens on the ground that the case could be adjudicated adequately and conveniently in the Chinese courts. Moreover, it is the latter which accordingly had subject-matter jurisdiction.

Issue: Whether or not a district court can validly dismiss a case at once based on forum non conveniens (FNC) even without any other threshold objection

HELD:

YES. The court has the jurisdiction to respond immediately to an FNC plea and there is no need to take up first any other threshold objection. In essence, a court need not even resolve whether it has authority to adjudicate the case on the basis of subject matter jurisdiction or personal jurisdiction over the defendant if it determines that in any event, a foreign tribunal is the more suitable arbiter of the merits of the case. Forum non conveniens is a non merits ground for dismissal.