As the cannabis industry continues to evolve, our firm has seen a rise in inquiries relating to litigation between domestic parties and international parties. By the simple fact that a dispute involves a foreign party, a host of special considerations come into play – one of which is, where will this be litigated? Often, in an attempt to have the home court advantage, we are confronted with the situation that both sides have initiated lawsuits in their respective courts. Unfortunately, where the parties ultimately end up litigating is not a simple matter of who got to their courthouse first. In this article, we’ll provide an introduction to two principles that may come into play: international abstention and forum non conveniens.
Colorado River Water Conservation Dist. v. United States, 424 U.S. 800 (1976), provides that a United States court may abstain from exercising its jurisdiction over a case based on “considerations of wise judicial administration, giving regard to conservation of judicial resources and comprehensive disposition of litigation.” A pretty nebulous standard, right? Luckily, the Colorado River Court also provides a list of factors that a court should consider in deciding whether to close its door on a particular