Venue, Transfer, and Forum Non Conveniens Flashcards
Basic choices under the venue statute
The P may lay venue in any district where:
- all defendants reside (residential venue); or
- A substantial part of the claim arose or a substantial part of the property involved in the lawsuit is located (transactional venue)
NOTE: these provisions do not apply if the case was removed from state to federal court. For removed cases, venue is in the federal district embracing the state court where the action was filed. These provisions are for cases originally filed in federal court.
Where claim can arise for transactional venue
A substantial part of the claim can arise in more than one district.
So a substantial part of a tort claim might arise where the defective product was manufactured and where the P was injured.
A substantial part of a contract claim might arise where the contract was entered into and where it was to be performed.
Miscellaneous Venue Matters
For venue purposes, it does not matter where the P resides.
The venue rules are the same for diversity or FQ cases.
If the D resides outside of the US, venue is proper in any federal district court, but if another D does reside in the US, venue must be proper to her.
Transfer of Venue
Transfer goes from one trial court in a judicial system to another trial court in the same judicial system. The transferee must be a proper venue and have PJ over the D - and generally those must be true without waiver by the D.
Original Court - Transferor
New Court - Transferee
Minor Exception - if all parties consent and the court finds cause for the transfer.
Where D resides for venue purposes
Human - resides in the federal district where she is domiciled.
Business - resides in all districts where it is subject to PJ for the case.
Transfer of Venue - Statute 1: Transfer from a Proper Venue
if the original district is a proepr venue, that court can order transfer based on convenience of parties and witnesses and in teh interests of justice.
Because transfer overrides the P’s choice of forum and the P chose a proper venue, the burden is on the person seeking transfer (usually the D).
The court will consider both public and private factors showing that another court is the center of gravity for the case.
Private v. Public Factors to be considered by the court
Public - the court will consider things like what law applies, what community should be burdened with jury service, the desire to keep a local controversy in a court.
Private - the court considers convenience. For example, it will look to where the D’s and evidence are found.
Transfer Under Statute 1 - Effects on Choice of Law
When a diversity case is filed in a proper venue but courts orders transfer under statute 1, the transferee court must apply the choice of law rules of the transferor court (unless transfer is to give effect to a valid forum selection clause)
Effect of Forum Selection Clause
A forum Selection Clause (FSC) is a provision in which the parties agree that a dispute between them will be litigated in a particular place. If one party sues the other in violation of an FSC, the D may seek to enforce the FSC through a motion to transfer.
KEY POINTS:
1. Federal law enforces FSCs if they’re not unreasonable (some states do not enforce). In federal court, federal law governs transfer. So a fed courrt may enforce an FSC even though a state court int hat forum state would not;
- When there is a valid FSC, only public interest factors are considered for transfer; and
- When transfer to enforce an FSC, the transferee court will apply its own choice of law rules. The transfer does not carry the transferor court’s choice of law rules with it.
Transfer Statute 2 - original Venue is Improper
If the original district is an improper venue, the court may transfer in the interest of justice or dismiss.
When the federal court transfers a diversity case because the original venue is improper, the transferee applies its own choice of law rules, that is, the choice of law rules of the state in which it sits, and not the choice of law rules of the transferor court. The P doesn’t benefit by filing in an improper venue.
Forum Non Conveniens
FNC applies when there is another court that is the center of gravity for the case.
The court invoking FNC will stay (hold it in abeyance) or dismiss the case.
Whether the court dismisses or stays, the idea is that the P will then sue in the other court and the court may impose conditions on the party requesting transfer such as requiring her to waive service of process.
FNC - Factors Considered
the FNC decision is based on the same public and private factors as transfer, including the existence of a valid Forum Selection Clause.
Other Court Must be Adequate
the other court must available and adequate. Suppose the center of gravity court, which is in a foreign country, does not permit jury trials, recovery for pain and suffering, or other remedies.
Usually, the forum will be adequate unless the P can get no remedy there.
