Answering a question of first impression, in DIRTT Environment Solutions, Inc. v. Falkbuilt, – F.4th –, 2023 U.S. App. LEXIS 8535 (10th Cir. April 11, 2023), the U.S. Court of Appeals for the Tenth Circuit foreclosed district courts in the circuit from dismissing only part of an action under the forum non conveniens doctrine. The circuit court held that a district court abused its discretion in dismissing an action as to several defendants based on forum non conveniens while allowing the same action to proceed against other defendants.
Factual Background
Appellants, a Colorado corporation and its Canadian parent (collectively, DIRTT), specialize in the design and construction of prefabricated interior spaces and use proprietary software in its design process. Id. at *2. DIRTT was founded in 2003 by three individuals, including Mogens Smed, who served as DIRTT’s CEO. Id. In 2018, DIRTT parted ways with Smed, and Smed established his own company, Falkbuilt, Ltd. Id. at *2-3. Falkbuilt’s business also focuses on producing prefabricated interior spaces. Id. at *3. DIRTT alleged that after his departure, Smed continued identifying himself “as a ‘DIRTTbag,’ a phrase used by DIRTT employees to describe themselves and express pride in adhering to DIRTT’s philosophy.” Id.
