FRANK D. WHITNEY, Chief District Judge.
On February 5, 2014, Defendant filed a complaint against Plaintiff in the United States District Court for the Northern District of California, alleging that Plaintiff failed to perform the services that he promised to perform for Defendant, resulting in lost profits and unnecessary costs for Defendant. Plaintiff subsequently filed the present action in North Carolina Superior Court on June 10, 2014, alleging Plaintiff's entitlement to stock options and Defendant's financial information relating to such stock options because Plaintiff properly performed services as promised to Defendant.
On July 8, 2014, Defendant removed that state case to this Court. The undersigned denied Plaintiff's motion for remand to state court on August 1, 2014, because the Court found subject matter jurisdiction existed since there was sufficient evidence to support Defendant's contention that the amount in controversy exceeded $75,000.
Thereafter, Defendant filed the instant motion to transfer, which has been fully briefed by the parties and is now ripe for review.
Under 28 U.S.C. § 1404(a), "[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." District courts have discretion to adjudicate motions for transfer based on notions of fairness and convenience.
In exercising this discretion, the Court determines whether the case should be transferred for the convenience of the parties, witnesses, and in the interest of justice. To make this determination, this Court applies a balancing test and considers various factors in deciding whether transfer is appropriate.
At the outset, the Court notes that Plaintiff's sole opposition to Defendant's Motion to Transfer is the argument that this matter is not properly before this Court because the amount in controversy does not exceed $75,000, the diversity threshold. Notably, Plaintiff neither addresses nor objects to Defendant's analysis of the considered factors, as discussed herein. In fact, Plaintiff concedes that, if this lawsuit were properly before this Court, Plaintiff would not contest the transfer of his case to the Northern District of California. (Doc. No. 22). While the failure to adequately oppose the instant motion may be one reason to support granting Defendant the relief it seeks, the Court will nevertheless briefly explain why, as a matter of law, it should be granted.
First and foremost, transfer of this case would not violate §1404(a) because jurisdiction is proper in the Northern District of California. Defendant is incorporated in and has its principal place of business is in California. Thus, transfer would not violate §1404. The vast majority of employees work out of Defendant's headquarters in San Jose, California, unless traveling to assist Defendant's customers. (Doc. No. 16). While Plaintiff contends that he is a resident of North Carolina and that Defendant does substantial business with customers in North Carolina, a review of Plaintiff's Complaint similarly indicates that Defendant is a California corporation with its principal place of business in San Jose, California. (Doc. No. 1-3). Therefore, jurisdiction is proper in the Northern District of California under §1404.
The Court now looks to the applicable factors to determine whether a matter will be transferred. Defendant argues that six factors support transfer, five factors are neutral, and no factors oppose transfer. (Doc. No. 16).
The Court agrees with Defendant that six factors support transfer. The first factor, "Plaintiff's initial forum choice," weighs in favor of transfer because Defendant filed an action against Plaintiff several months before Plaintiff filed the current action.
The Court also agrees that five of the factors are neutral and favor neither party. The second factor, "residence of the parties," is neutral because one party resides in California and the other in North Carolina. (Doc. No. 16). The fifth factor, "the possibility of a view," is neutral as a view will not be relevant in this case. (Doc. No. 22). Additionally, the sixth factor, "the enforceability of a judgment if obtained," is neutral. Even though Defendant has no property in North Carolina, this Court could require a California court to enforce the judgment. (Doc. No. 22). The seventh factor, "the relative advantages and obstacles to a fair trial," is neutral because any federal court is capable of providing a fair trial. (Doc. No. 22). Lastly, the eleventh factor, "avoidance of unnecessary problems with conflict of laws," favors neither party because Defendant contends that California law applies and Plaintiff neither opposes that contention nor indicates which law applies. (Doc. No. 22).
The Court finds that no factors oppose transfer. The Court finds that transfer of this matter to the United States District Court for the Northern District of California is appropriate under §1404 and controlling law.
For the foregoing reasons, Defendant's Motion for Judicial Notice and Motion to Transfer to the Northern District of California are both
IT IS SO ORDERED.