FlexShopper, Inc. v. Katapult Holdings, Inc.

Summary

The United States District Court for the Eastern District of Texas denied Katapult Holdings, Inc.'s motion to transfer a patent infringement action to the District of Delaware under 28 U.S.C. § 1404(a). The court held that a Delaware forum-selection clause in a nondisclosure agreement was mandatory and valid but did not apply to the asserted patent claims or related defenses. Applying the Fifth Circuit's § 1404(a) factors, the court concluded that Delaware was not clearly more convenient than the Eastern District of Texas.

Holdings

1. The forum-selection clause was mandatory because the agreement required interpretation under Delaware law and provided for exclusive jurisdiction in Delaware courts.
2. The forum-selection clause was valid and enforceable because the plaintiff failed to overcome the presumption that forum-selection clauses are valid.
3. The forum-selection clause did not apply to the patent-infringement action or the defendant's related defenses.
4. Transfer to the District of Delaware was not warranted because Katapult failed to show that Delaware was clearly more convenient than the Eastern District of Texas.

Questions Presented

1. Whether the nondisclosure agreement's forum-selection clause was mandatory.
2. Whether the forum-selection clause was valid despite the agreement's alleged expiration.
3. Whether the forum-selection clause applied to the patent-infringement claims and related defenses.
4. Whether the action should be transferred to the District of Delaware under 28 U.S.C. § 1404(a).

Disposition

denied