Crosby & Higgins LLP has successfully defeated a motion for preliminary injunction in the United States District Court for the Southern District of New York, in an action arising from the proposed construction of the largest water desalination plant in the Western Hemisphere, to be built on the Pacific Ocean in Rosarito, Mexico. Crosby & Higgins LLP was retained by the defendants in the action after plaintiffs sought an emergency temporary restraining order and preliminary injunction enjoining defendants from continuing to litigate their claims against the defendants in Tecate, Mexico, where defendants are suing plaintiffs over a series of alleged corporate misdeeds that ultimately swindled them out of a 25% ownership interest in the project. Among other things, plaintiffs argued that a forum selection clause in one of the agreements at issue required defendants to bring their claims exclusively in New York. Rejecting the motion, Judge Analisa Torres explained that, “[t]he policy favoring enforcing a forum selection clause is not threatened because the forum selection clause in the 2012 agreement does not require that a lawsuit be filed in this court; and, absent that, there is no policy which is undermined by allowing defendant to continue its action in Mexico.” In its ruling denying plaintiffs’ motion for reconsideration, the court reaffirmed its analysis and found that “Plaintiffs cite no ‘controlling decisions or data’ that the Court overlooked and that might reasonably be expected to change its decision.” Thereafter, Crosby & Higgins LLP moved to dismiss the case on behalf of its clients and defendants subsequently dismissed their claims voluntarily. The case is Consolidated Water Cooperative U.A. et al. v. EWG Water, LLC and Gough W. Thompson, Jr., Index No.: 15-cv-9124 and has been reported on in The San Diego Union-Tribune.

Leave a Reply