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Case of the Day: AVR Communications v. American Hearing Systems

The case of the day is AVR Communications, Ltd. v. American Hearing Systems, Inc. (Minn. Ct. App. 2005). American Hearing Systems, a Minnesota firm in the hearing aid business, got into a contract dispute with AVR, an Israeli firm. In 2007, AVR commenced an arbitration against AHS in Israel that resulted in an award in favor of AVR for $2.675 million in damages and ₪ 1 million in fees and expenses. In other words, the award was partly denominated in dollars and partly in shekels. In 2014, the U.S. District Court for the District of Minnesota confirmed the award. Its judgment required payment of a portion of the judgment in shekels, just as the award had. AVR then sought to register the federal judgment in the Minnesota state district court. The decision said AVR did this “so [it] could begin collection proceedings.” Of course, registration of the federal judgment in the state courts was hardly necessary—the federal courts have ample remedies for judgment creditors, and indeed, FRCP 69 incorporates the remedies the judgment creditor would have in the state courts.

In any event, the state district court refused to enter a judgment denominated in both dollars and shekels. Instead, it entered a judgment denominated in dollars only, at a particular conversion rate. AHS appealed.

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Case of the Day: Power Electric Distribution v. Hengdian Group Linix Motor

The case of the day is Power Electric Distribution, Inc. v. Hengdian Group Linix Motor Co. (D. Minn. 2015). Power Electric purchased custom-made motors from Linix, a Chinese company, for resale to manufacturers in the United States. Their agreement required disputes to be resolved through arbitration in Minneapolis administered by the AAA, and both parties consented to the jurisdiction of the state and federal courts in Minnesota for entry of judgment on an arbitral award. When a dispute arose, Power Electric began an arbitration. Linix participated in the arbitration, which ended in an award for more than $1.5 million for Power Electric, plus a return of tooling, an accounting of all motors Linix sold to FBD (one of Power Electric’s customers), and a royalty on those sales. Power Electric moved to confirm the award. It served the summons on Linix by personal service in China. It was evident that Linix was aware of the proceedings, but Linix took no action except to send a letter asking Power Electric to “Please proceed according to the Hague Convention.” The court entered a judgment confirming the award. Prior to entry of the judgment, Linix had satisfied the $1.5 million damages award, but there was a dispute about the accounting and payment of royalties.
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Case of the Day: Andover Healthcare v. 3M

The case of the day is Andover Healthcare, Inc. v. 3M Co. (D. Minn. 2014). Andover and 3M were both in the business of manufacturing and selling bandages in the US and Germany. Andover sued 3M in Delaware for infringement of a US patent, and in Germany for infringement of a European patent.
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