PARALLEL LITIGATION IN ARIZONA

In today’s global economy, many businesses have ongoing contacts and operations in multiple states and countries. While parties will often try to draft contracts that dictate where they can be sued, and under which country’s laws, the extent and methods of enforcement of these contractual provisions will vary from jurisdiction to jurisdiction. As a result, a business may be faced with a lawsuit in a jurisdiction outside of its home state, or may become involved in more than one lawsuit over the same dispute in multiple jurisdictions.

Federal and Arizona courts may differ on their willingness to grant anti-suit injunctions to restrain lawsuits filed elsewhere. Anti-suit injunctions are a controversial tool, increasingly used by some courts, to prevent parties within a jurisdiction from improperly pursuing their claims in foreign jurisdictions. Obviously, where a party wishes to confine litigation or arbitration to Arizona, it helps to have a contract in place that requires that disputes be settled in Arizona and pursuant to Arizona law. Contractual clauses setting the parameters of dispute resolution, such as forum selection clauses, will also help the foreign business that finds itself in an Arizona court in violation of prior agreements. For parties who find themselves wrongly sued in Arizona, other forms of relief may be available, but are best sought from courts within Arizona. Parties wishing to avoid parallel litigation should consult counsel who are familiar with cross-border litigation rules and strategies, since the procedures and methods of obtaining effective anti-suit relief can be arcane and complex as they often involve sensitive issues and considerations under international law.

While some parties may seek to avoid parallel litigation, others may have to file a parallel lawsuit in Arizona to collect evidence for the proceedings they do wish to pursue elsewhere. Both state and federal law in Arizona contain statutory and procedural rules that allow for cross-border discovery, enabling parties to collect evidence in Arizona under court supervision, for use in proceedings in other states or countries. Courts in Arizona also have procedural rules that govern applications to courts outside Arizona for the collection of evidence for use in Arizona proceedings. However, discovery in other jurisdictions can be perilous, and is illegal in some countries if not conducted properly. Consequently, parties to Arizona lawsuits involving evidence that remains abroad, or foreign parties wishing to obtain evidence in Arizona, should seek counsel who are knowledgeable both as to the wider applicable cross-border legal framework, and the local rules for obtaining the evidence they need.

THIS DOCUMENT WAS PREPARED FOR GENERAL INFORMATIONAL PURPOSES AND DOES NOT CONSTITUTE LEGAL ADVICE