The opinion of the court was delivered by: Sweet, District Judge.
Defendants Dr. Martin Bruetman ("Bruetman"), Ronald Tash
("Tash"), Mauricio Agudelo ("Agudelo"), High Tech Medical
Parks Development Corporation ("High Tech"), Douglas Kiell
("Kiell"), and Alta Tecnologia Medica S.A. ("Altec")
(collectively, the "Bruetman defendants") have moved to
dismiss plaintiff Dr. Diego Herbstein's ("Herbstein") case on
the grounds of comity or forum non conveniens, or
alternatively, to stay the case until similar proceedings in
Argentina are resolved. For the reasons set forth below, the
motions are denied.
Plaintiff Herbstein is a physician, originally from
Argentina but currently a permanent United States resident
domiciled in New York. Herbstein is an officer, director, and
50% shareholder in Imagenes Por Computacion ("IxC"). He is
also listed as a director and 8% shareholder of Altec.
Defendant Bruetman is a physician, originally from
Argentina but now a citizen of Illinois. Bruetman is the
other 50%, shareholder in IxC, and he serves as IxC's
President and Chairman of the Board. Bruetman also indirectly
holds a controlling interest in, and serves as the Director
Defendant Tash is a citizen of Illinois and is a 12.25%
shareholder in High Tech. Tash also serves as the Secretary
and legal counsel for High Tech.
Defendant Agudelo is a citizen of Illinois, and serves as
the controller for High Tech.
Defendant High Tech is an Illinois corporation with its
principal place of business in Illinois. High Tech
specializes in the scientific and technical advising of
medical establishments. It also owns 49%, of Altec stock.
Defendant Kiell is a citizen of Connecticut, and at all
relevant times, he owns 12.25% of High Tech stock. Until
January 1989, he was the President and Chief Financial
Officer of High Tech.
Defendant Altec is an Argentine corporation with functions
similar to High Tech's.
In 1989, Herbstein initiated a civil suit in Argentina
against Bruetman and Amerigo Pescio ("Pescio") seeking: (1)
to remove Bruetman as director of IxC; (2) to remove Pescio
as executive manager of IxC; (3) to declare that Bruetman and
Pescio wrongfully carried out their duties for IxC; (4) to
petition the Argentine court to assign a provisional
administrator for IxC; and (5) to petition the Argentine
court to maintain the status quo on IxC's corporate relations
with the Guemes Foundation (an Argentine non-profit
corporation affiliated with the Guemes Hospital).*fn1
On August 22, 1989, the lower court in Argentina denied
Herbstein's motions, reasoning inter alia, that IxC's by-laws
should govern the internal affairs of the corporation. Then on
September 28, 1989, the Argentine appeals court suspended IxC's
board and granted Herbstein's request for a provisional
administrator. However, the appeals court refused to accept
Herbstein as a "victim" of the alleged wrongdoing, so that he
was found not personally eligible to recover damages if
wrongdoing was eventually discovered.*fn2 In view of these
measures, the court found the petition to retain the status quo
At approximately the same time Herbstein instituted the
above action, Bruetman brought a second Argentine suit, a
civil/criminal suit on behalf of himself and IxC, requesting
an investigation of several people, including Herbstein, to
determine their responsibility in IxC's "accounting
irregularities." Bruetman sought the status of victim, but
the Argentine appeals court also refused his request. The
Argentine appeals court held that Bruetman's individual suit
was not proper, but that IxC had a legitimate interest in the
investigation. Shortly thereafter, Bruetman filed a ...