Celgard, LLC v Shenzhen Senior Technology Material Co Ltd

Celgard, LLC v Shenzhen Senior Technology Material Co Ltd

Celgard established a serious issue to be tried that Senior misused its trade secrets in battery separators marketed in the UK. English law applies under Rome II as the damage occurs in England. England is the proper forum. Damages would not be an adequate remedy for Celgard due to the risk of unquantifiable loss, price erosion, and loss of incumbent supplier status. The balance of convenience favours granting an interim injunction restraining Senior from importing or marketing battery separators to the UK Customer. Permission to serve out of the jurisdiction is granted, but alternative service is refused.

Parties
Claimant: Celgard, LLC; Defendant: Shenzhen Senior Technology Material Co Ltd
Jurisdiction
England and Wales
Judgment Date
30 July 2020
Procedural Posture
Interlocutory Application for Interim Injunction and Permission to Serve Out of Jurisdiction / Ruling on Interim Injunction and Service Out of Jurisdiction
Outcome
Interim injunction granted; permission to serve out of jurisdiction granted; application for alternative service refused
Legal Topics
Trade Secrets, Breach of Confidence, Interim Injunctions, Jurisdiction and Service Out of Jurisdiction, Forum Conveniens, Adequacy of Damages, Rome II Regulation
Intellectual Property Civil Procedure Conflict of Laws Trade Secrets Breach of Confidence Interim Injunctions Jurisdiction and Service Out of Jurisdiction Forum Conveniens +2 more

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Parties

Celgard, LLC

Claimant

Shenzhen Senior Technology Material Co Ltd

Defendant

Procedural Posture

Interlocutory Application for Interim Injunction and Permission to Serve Out of Jurisdiction / Ruling on Interim Injunction and Service Out of Jurisdiction

Legal Issues

  1. 1 Whether Celgard has established a serious issue to be tried regarding misuse of trade secrets by Senior
  2. 2 Whether England and Wales is the proper forum (forum conveniens) for the dispute
  3. 3 Whether English law or Chinese law applies to the claim under Rome II Regulation

Ratio Decidendi

Celgard established a serious issue to be tried that Senior misused its trade secrets in battery separators marketed in the UK. English law applies under Rome II as the damage occurs in England. England is the proper forum. Damages would not be an adequate remedy for Celgard due to the risk of unquantifiable loss, price erosion, and loss of incumbent supplier status. The balance of convenience favours granting an interim injunction restraining Senior from importing or marketing battery separators to the UK Customer. Permission to serve out of the jurisdiction is granted, but alternative service is refused.

Court Disposition

Interim injunction granted; permission to serve out of jurisdiction granted; application for alternative service refused

Orders

  • Senior is restrained from making, offering, putting on the market, importing, exporting or storing battery separator film to be supplied to the UK Customer in the United Kingdom until trial or further order.
  • Permission to serve proceedings out of the jurisdiction is granted.