WILLIAM H. STEELE, District Judge.
This matter comes before the Court on defendant's Motion to Dismiss for Lack of Personal Jurisdiction or, in the Alternative, to Transfer Venue (doc. 13). The Motion has been extensively briefed, and is now ripe for disposition.
On March 13, 2018, plaintiff, Tonja B. Carter, in her capacity as Personal Representative of the Estate of Nelle Harper Lee, filed a Complaint (doc. 1) seeking declaratory judgment against defendant, Rudinplay, Inc. Carter filed an Amended Complaint (doc. 12) as of right on April 6, 2018. Well-pleaded allegations of the Amended Complaint reflect that Nelle Harper Lee, author of the well-known novel To Kill a Mockingbird (the "Novel"), was a citizen of Monroe County, Alabama, at all relevant times until her death on February 19, 2016, and that Carter is a citizen of Monroe County, Alabama. (Doc. 12, ¶¶ 1-2.) The Amended Complaint identifies Rudinplay as a New York-based theater production company whose principal is Scott Rudin. (Id., ¶ 3.)
The Amended Complaint relates to a contract (the "Agreement") entered into between Lee and Rudinplay on June 29, 2015. (Id., ¶ 9.) By the terms of the Agreement, Rudinplay agreed to pay Lee the sum of $100,000 in exchange for the right to adapt the Novel into a stage play (the "Play"). (Id., ¶ 13.) The parties' dispute centers on Paragraph 12 of the Agreement, which provides in relevant part that "the Play shall not derogate or depart in any manner from the spirit of the Novel nor alter its characters." (Doc. 12, Exh. A, ¶ 12.) Carter, as Personal Representative of Lee's Estate, seeks a declaratory judgment that the Play developed and produced by Rudinplay violates Paragraph 12 in three specific respects, to-wit: its depiction of the legal proceedings against Tom Robinson and its alteration of the characters Atticus Finch and Jem Finch. (Doc. 12, at 13-14.) The core of the parties' dispute is whether the Play violates Paragraph 12 and, if so, whether Carter is entitled to any legal or equitable remedy under the Agreement. Carter seeks a declaratory judgment from this Court that the Play violates Paragraph 12 in the specified respects, while Rudinplay denies that any such violation exists or that the Agreement authorizes the relief sought.
For purposes of the pending Motion to Dismiss, other relevant aspects of the Agreement provide as follows: (i) a condition precedent to Lee's approval of the playwright was that such playwright must agree to certain requirements and restrictions on the Play's performances in Alabama, including "an annual performance of the Play in Monroeville, AL" and "a restriction against any license for performance of the Play within sixty (60) miles of the city limits of Monroeville, AL" (doc. 12, Exh. A, ¶ 2(a)); (ii) the Play was initially to be staged "on Broadway or in the West End of London" (id., ¶ 4); (iii) Lee was to be paid certain royalties on an ongoing basis for each production of the Play presented by or under license from Rudinplay (id., ¶ 5), as well as a share of the proceeds of any sale or other disposition of subsidiary rights in the Play (id., ¶ 6), and a share of net profits from the initial production (id., ¶ 7); (iv) Lee was granted the right to prior, written approval of the playwright, the right to review the script of the Play, and the right to make comments (id., ¶ 12); and (v) if Lee had concerns with the script, then Rudinplay was to be given prompt notice and an opportunity to discuss resolution of same (id.).
Rudinplay has now filed a Motion to Dismiss pursuant to Rule 12(b)(2), Fed.R.Civ.P., or alternatively, to transfer this action to the U.S. District Court for the Southern District of New York pursuant to 28 U.S.C. § 1404(a). In support of this Motion, Rudinplay submits evidence of the following facts: (i) Rudinplay is a New York-based company with its principal place of business in New York; (ii) neither Rudinplay nor its principal, Scott Rudin, has any relationship to or maintains any ongoing contacts with Alabama; (iii) Rudinplay did not negotiate the Agreement directly with Lee in Alabama, but instead dealt with her New York-based attorney and Andrew Nurnberg, her London-based literary agent; (iv) the Agreement was addressed to Lee in care of Nurnberg in the United Kingdom; (v) Rudinplay and its agents did not negotiate with anyone in Alabama; (vi) Rudinplay paid the requisite $100,000 to Lee under the Agreement by mailing a check to Nurnberg in London, England; (vii) Rudinplay sent the draft script to Nurnberg in London; (viii) Rudinplay communicated with Nurnberg in London about the script and the Play in September 2017, and met with Nurnberg and plaintiff, Carter, in New York in February 2018 to discuss the script; and (ix) the Play is currently set to premiere in New York on December 13, 2018, and is being developed, rehearsed and produced entirely in New York. (Doc. 13, at 6-8.) According to defendant, "the only contact between Rudinplay and Alabama" was a single brief telephone call between Rudinplay and Carter on September 25, 2017. (Id. at 2-3.) On that basis, Rudinplay seeks dismissal of this action for lack of personal jurisdiction or, alternatively, transfer to the Southern District of New York.
"A plaintiff seeking the exercise of personal jurisdiction over a nonresident defendant bears the initial burden of alleging in the complaint sufficient facts to make out a prima facie case of jurisdiction." United Technologies Corp. v. Mazer, 556 F.3d 1260, 1274 (11
Carter has submitted both factual allegations in her Amended Complaint and affidavits and other exhibits in an effort to meet her burden of establishing this Court's personal jurisdiction over Rudinplay. The jurisdictional facts shown by Carter (construing all reasonable inferences and resolving all evidentiary conflicts in her favor) include the following: On October 14, 2013, defendant's agent David Rogers contacted Carter, who was Lee's attorney and co-literary agent, at Carter's office in Monroeville, Alabama via both voicemail and e-mail. (Carter Decl. (doc. 28, Exh. 5), at ¶¶ 3, 4, 7 & Exh. B.) In those communications, Rogers identified himself as Scott Rudin's director of development, and wrote, "We are curious to know who controls dramatic rights for TO KILL A MOCKINGBIRD, and with whom we might have a conversation about major stage adaptations." (Id. at ¶ 7 & Exh. B.)
Plaintiff's evidence also shows a series of interactions between Rudinplay's principal, Scott Rudin, and Carter after dissemination of a draft script. On September 25, 2017, Rudin contacted Carter telephonically in Monroeville, Alabama, to discuss her initial reaction to the script. During the ensuing 30-minute conversation, Carter expressed reservations to Rudin that the script altered certain characters (including Atticus Finch) and was not consistent with 1930s small-town Alabama. (Id. at ¶ 17.)
It is well settled that "Alabama's long-arm statute permits the exercise of personal jurisdiction to the fullest extent constitutionally permissible." Sloss Industries Corp. v. Eurisol, 488 F.3d 922, 925 (11
As noted, the first prong of the specific jurisdiction analysis examines whether the plaintiff's claims arise out of or relate to the defendant's forum contacts. See Louis Vuitton, 736 F.3d at 1355 ("A fundamental element of the specific jurisdiction calculus is that plaintiff's claim must arise out of or relate to at least one of the defendant's contacts with the forum.") (citation and internal marks omitted). This inquiry "must focus on the direct causal relationship between the defendant, the forum, and the litigation." Id. at 1355-56 (citations omitted). It cannot reasonably be disputed that Carter's claims arise out of Rudinplay's contacts with Alabama. After all, those Alabama contacts include Rudinplay reaching out to Harper Lee's attorney in Alabama about adapting the Novel into a play, entering into an agreement with Lee about such a stage adaptation, and having communications with the Estate's attorney (Carter) in Alabama concerning the implementation of that agreement. The claims presented by Carter against Rudinplay in the Amended Complaint plainly satisfy the "arising out of" or relatedness prong, and the requisite relationship among Rudinplay, Alabama, and Carter's Amended Complaint is easily demonstrated. Defendant does not argue otherwise. The first prong is satisfied.
At the heart of the parties' jurisdictional dispute is the second prong of the due process test for specific jurisdiction, which requires Carter to show that Rudinplay purposefully availed itself of the privilege of conducting activities in Alabama, thus invoking the benefit of Alabama's laws. The traditional test for purposeful availment, which applies here, focuses on whether the defendant has minimum contacts with the forum state. See, e.g., Luis Vuitton, 736 F.3d at 1357 (describing and applying "the traditional minimum contacts test for purposeful availment applicable in contract and tort cases alike"). This test looks to whether the nonresident defendant's contacts with the forum state "(1) are related to the plaintiff's cause of action; (2) involve some act by which the defendant purposefully availed himself of the privileges of doing business within the forum; and (3) are such that the defendant should reasonably anticipate being haled into court in the forum." Id. (citation omitted). "[W]hen inspecting a contractual relationship for minimum contacts, we follow a `highly realistic approach' that focuses on the substance of the transaction: prior negotiations, contemplated future consequences, the terms of the contract, and the actual course of dealing." Diamond Crystal, 593 F.3d at 1268 (citation omitted).
Utilizing the Eleventh Circuit's "highly realistic approach," the Court readily concludes that Rudinplay had sufficient minimum contacts with Alabama to satisfy the purposeful availment prong. A critical fact — conspicuously omitted from defendant's Rule 12(b)(2) Motion — is that Rudinplay initiated contact with Harper Lee's representatives in Alabama via a series of persistent communications (electronic and voice) in October 2013. Indeed, Rudinplay deliberately reached out to Lee's personal counsel in Alabama in a targeted manner for the purpose of soliciting a continuing business relationship with Lee in Alabama. That fact alone weighs heavily in favor of a finding of purposeful availment.
Simply put, the Lee/Rudinplay business relationship was contemplated by the parties to be a far cry from the "one-shot operation" at issue in Sea Lift, Inc. v. Refinadora Costarricense de Petroleo, S.A., 792 F.2d 989, 994 (11
This conclusion is reinforced by the parties' actual course of dealing. Although Rudinplay professes to have no connection to Alabama because it negotiated the Agreement through Lee's representatives in New York and England, Rudinplay well knew that it was forming a business relationship not with a lawyer in New York or a literary agent in London, but rather with an author in Alabama. Again, Rudinplay did not initially reach out to a business contact in England, but instead solicited Lee's personal attorney in her hometown of Monroeville, Alabama. When disagreements arose as to the substance of the script and its compliance or lack thereof with Paragraph 12, Rudinplay had a direct, substantive, 30-minute telephone conversation with Carter (as personal representative of Lee's Estate) in Alabama in September 2017. When the dispute escalated in March `, letters were exchanged between Rudinplay in New York and Carter in Alabama. The point is simple: through this course of dealing, Rudinplay was plainly aware that its purposeful acts vis a vis the Agreement and the interpretation/enforcement of same would have direct effects in Alabama, such that it should have reasonably anticipated being haled into court in this forum, thereby satisfying minimum contacts. See, e.g., Robinson v. Giarmarco & Bill, P.C., 74 F.3d 253, 258 (11
In sum, the Court finds upon careful application of the Eleventh Circuit's "highly realistic approach," considering the substance of the transaction including prior negotiations, contemplated future consequences, contract terms, and actual course of dealing, that plaintiff has met her burden of showing purposeful availment. Plaintiff's evidence shows that Rudinplay deliberately reached out beyond New York and created continuing relationships and obligations with Harper Lee (and, later, her Estate) in Alabama pertaining to the stage adaptation of the Novel. Pursuant to those ongoing relationships, Rudinplay was designated as Lee's exclusive agent to procure a playwright, Lee had the right to approve or reject the playwright, the script was subject to review and comment by Lee (with notice to and discussion with Rudinplay to resolve any concerns), Rudinplay was to pay a stream of royalty and other payments to Lee, Rudinplay volunteered to put on a press event in Alabama for the Play, and when the relationship soured there were multiple direct communications between Rudinplay and Carter in Alabama. In light of these and other facts and circumstances, Rudinplay is properly subject to regulation and sanctions in Alabama to account for the proximate consequences of its activities. The exercise of jurisdiction over Rudinplay in this matter would not offend the Due Process Clause.
Of course, a finding of purposeful availment does not conclude the due process inquiry. Carter having satisfied the first two prongs of the test, Rudinplay "must make a `compelling case' that the exercise of jurisdiction would violate traditional notions of fair play and substantial justice." Diamond Crystal, 593 F.3d at 1267. The Eleventh Circuit has emphasized that "only in highly unusual cases" will this requirement be satisfied, and only where the defendant "demonstrate[s] that the assertion of jurisdiction in the forum will make litigation so gravely difficult and inconvenient that he unfairly is at a severe disadvantage in comparison to his opponent." Republic of Panama v. BCCI Holdings (Luxembourg) S.A., 119 F.3d 935, 948 (11
For all of these reasons, the Court concludes that personal jurisdiction is properly exercised over defendant, Rudinplay, Inc., in this forum on a specific jurisdiction theory pursuant to Burger King v. Rudzewicz and its progeny. The Motion to Dismiss for Lack of Personal Jurisdiction is, therefore,
In the alternative, Rudinplay moves for transfer of venue to the U.S. District Court for the Southern District of New York on the grounds that it "is a more convenient forum." (Doc. 13, at 18.) The applicable statute provides that "[f]or the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought." 28 U.S.C. § 1404(a). As a general proposition, district courts have broad discretion in deciding whether to transfer an action to a more convenient forum, with the movant bearing the burden of establishing that the proposed transferee forum is more convenient. See, e.g., Brown v. Connecticut General Life Ins. Co., 934 F.2d 1193, 1197 (11
"In the typical case . . ., a district court considering a § 1404(a) motion . . . must evaluate both the convenience of the parties and various public-interest considerations." Atlantic Marine Const. Co. v. U.S. Dist. Court for Western Dist. of Texas, 571 U.S. 49, 62, 134 S.Ct. 568, 187 L.Ed.2d 487 (2013). The former category of factors includes "relative ease of access to sources of proof; availability of compulsory process for attendance of unwilling, and the cost of obtaining attendance of willing, witnesses; possibility of view of premises, if view would be appropriate to the action; and all other practical problems that make trial of a case easy, expeditious and inexpensive." Id. at 62 n.6 (citation omitted). The latter category encompasses considerations of "the administrative difficulties flowing from court congestion; the local interest in having localized controversies decided at home; [and] the interest in having the trial of a diversity case in a forum that is at home with the law." Id. "The Court must also give some weight to the plaintiffs' choice of forum." Id.
The private-interest factors weigh heavily in favor of transferring venue to the Southern District of New York.
Moreover, Rudinplay has persuasively suggested that adjudication of whether Paragraph 12 has been violated (i.e., whether the Play derogates or departs from the spirit of the Novel or alters its characters) cannot be made solely on the basis of a cold printed script, but may require the finder of fact to view a live presentation of the Play itself.
The point is straightforward: Carter's Amended Complaint raises two critical issues as to which she seeks a declaratory judgment. The first is whether the Play as contemplated by Rudinplay derogates or departs from the spirit of the Novel or alters its characters, so as to violate Paragraph 12 of the Agreement. The second is what Paragraph 12 actually means, and what remedies (if any) it confers upon the Estate in the event that Rudinplay's Play does derogate or depart from the Novel's spirit or alters its characters. As shown above, the bulk of the witnesses and evidence that will be necessary to answer those questions is found in New York, not in Alabama. Some of those potential witnesses and evidence are highly unlikely to be available in an Alabama forum at all. In light of these circumstances, the Court concludes that the relevant private-interest factors heavily favor a § 1404(a) transfer.
Turning now to the public-interest factors, courts have considered administrative difficulties flowing from court congestion, local interest in having localized controversies decided at home, and the interest in having the forum be comfortable with and conversant in the governing law. See, e.g., Carucel Investments, L.P. v. Novatel Wireless, Inc., 157 F.Supp.3d 1219, 1229 (S.D. Fla. 2016). These factors are either neutral or point modestly in favor of transferring this action to New York. Most notably, the Agreement provides that "[a]ll matters concerning this Agreement and its validity, performance or breach shall be governed by the law of the State of New York applicable to contracts made and performed entirely therein." (Doc. 12, Exh. A, ¶ 16.) Although Rudinplay has identified no particular quirks, quagmires or idiosyncrasies of New York law that might place this Court at a disadvantage relative to a New York court in adjudicating this matter, that factor marginally favors a transfer of venue. Also, the locus of the controversy is found in New York, not in Alabama. After all, the parties' dispute concerns an Agreement that was negotiated in New York, not in Alabama; and relates to a theatrical production of a Play that is intended to be staged in New York by a New York production company involving a New York-based cast. Thus, this controversy is more localized to New York than it is to Alabama, a fact which also favors transfer. On balance, the public-interest factors are not major considerations in the § 1404(a) calculus in this case. To the extent they do come into play, however, they point in the direction of granting the Motion to Transfer.
In the face of this evidence and argument relating to private-interest and public-interest factors, Carter relies heavily on the fact that she selected an Alabama forum, not a New York forum, for this dispute. Circuit law generally accords deference to a plaintiff's choice of forum. See, e.g., Bartronics, Inc. v. Power-One, Inc., 510 F.Supp.2d 634, 637 (S.D. Ala. 2007) ("a plaintiff's choice of forum should be honored so long as venue is proper there, unless substantial countervailing considerations militate to the contrary") (citations omitted).
Additionally, the equities of the situation do not warrant strict adherence to Carter's selection of an Alabama forum. In March 2018, the parties commenced a short-lived dialogue about Carter's concerns with the latest draft script for the Play. On March 9, 2018, Rudinplay sent Carter a letter (responding to Carter's letter of March 5, 2018) emphasizing that Rudinplay "want[s] to work with the Estate of Harper Lee, as appropriate, regarding this project," and that Rudinplay's principal "would be very happy to get together with you" to attempt to work through Carter's concerns. (Carter Decl., Exh. G, at 1.) The March 9 letter concluded that Rudinplay "would like to consult with you to discuss with you your concerns, and to see if it is possible to resolve at least some of them." (Id. at 3.) These sentiments aligned neatly with Paragraph 12 of the Agreement's requirement that if Lee believed the Play derogated or departed from the Novel's spirit, or altered its characters, then Rudinplay "will be afforded an opportunity to discuss with [Lee] resolutions of any such concerns." Yet Carter spurned this good-faith invitation to meet and discuss her concerns with Rudinplay, as well as her consultation obligation under Paragraph 12 of the Agreement. Instead, she rushed to court and precipitously filed the instant Complaint just four days later, on March 13, 2018, in what certainly appears to be an attempt to shirk contractual duties and beat Rudinplay to the punch. (See doc. 1.)
In sum, the Court concludes that private-interest factors strongly favor transfer of this action to the Southern District of New York, and that public-interest factors are neutral or modestly favor such transfer. While plaintiff's choice of forum is entitled to consideration, it receives less deference here than it otherwise might because the locus of operative facts occurred outside of Alabama and because of equitable concerns regarding the timing and circumstances of Carter's filing of her Complaint in this forum. The Court has carefully considered all of these factors, duly recognizing that defendant bears the burden of establishing that the proposed transferee forum is more convenient than this one. Upon doing so, the Court exercises its discretion under 28 U.S.C. § 1404(a) to
For all of the foregoing reasons, it is
DONE and ORDERED.