Sue L. Robinson, District Judge.
Plaintiff Quest ("plaintiff") initiated two lawsuits on December 15, 2014, by filing complaints against Cokebusters USA Inc.
Presently before the court is a motion to transfer venue to the Southern District of Texas filed by defendant Cokebusters. (D.I. 25) Defendant Clean Harbors joined that motion. (Civ. No. 14-1482, D.1.25) The court has subject matter jurisdiction pursuant to 28 U.S.C. §§ 1331 and 1338(a). Venue is proper in the District of Delaware pursuant to 28 U.S.C. §§ 1391(b)-(c) and 1400(b).
Plaintiff is a limited liability company organized and existing under the laws of the State of Texas and having its principal place of business in Seattle, Washington. (D.1. 34 at 3) Defendant Clean Harbors is a corporation organized and existing under the laws of the State of Delaware and having its principal place of business in Norwell, Massachusetts. Defendant Cokebusters is a corporation organized and existing under the laws of the State of Delaware and having its principal place of business in Houston, Texas. (D.I. 26 at 3)
Section 1404(a) of Title 28 of the United States Code grants district courts the authority to transfer venue "[f]or the convenience of parties and witnesses, in the interests of justice ... to any other district or division where it might have been brought." 28 U.S.C. § 1404(a). Much has been written about the legal standard for motions to transfer under 28 U.S.C. § 1404(a). See, e.g., In re Link-A-Media Devices Corp., 662 F.3d 1221 (Fed.Cir. 2011); Jumara v. State Farm Ins. Co., 55 F.3d 873 (3d Cir.1995); Helicos Biosciences Corp. v. Illumina, Inc., 858 F.Supp.2d 367 (D.Del.2012).
Referring specifically to the analytical framework described in Helicos, the court starts with the premise that a defendant's state of incorporation has always been "a predictable, legitimate venue for bringing suit" and that "a plaintiff, as the injured party, generally ha[s] been `accorded [the] privilege of bringing an action where he chooses.'" 858 F.Supp.2d at 371 (quoting Norwood v. Kirkpatrick, 349 U.S. 29, 31, 75 S.Ct. 544, 99 L.Ed. 789 (1955)). Indeed, the Third Circuit in Jumara reminds the reader that "[t]he burden of establishing the need for transfer ... rests with the movant" and that, "in ruling on defendants' motion, the plaintiff's choice of venue should not be lightly disturbed." 55 F.3d at 879 (citation omitted).
The Third Circuit goes on to recognize that,
Id. (citation omitted). The court then describes some of the "many variants of the private and public interests protected by the language of § 1404(a)." Id.
Id. (citations omitted) (emphasis added).
With the above "jurisdictional guideposts" in mind, the court turns to the "difficult issue of federal comity" that transfer motions present. E.E.O.C. v. Univ. of Pa., 850 F.2d 969, 976 (3d Cir. 1988). Plaintiff has not challenged defendants' assertion that venue would also be proper in the Southern District of Texas; therefore, the court will not address this further. See 28 U.S.C. § 1404(a); (D.I. 34)
The parties have all chosen legitimate forums in which to pursue the instant litigation. Both defendants are Delaware corporations. A party's state of incorporation is a traditional and legitimate venue, as is the locus of a party's business activities. Defendants argue that the court should give less deference to plaintiff's choice of forum because Delaware is not "home turf' for either party (D.I. 26 at 3-7) and that litigation in Texas would be more appropriate because their office, headquarters, operations, facilities, and employees are based in the Southern District of Texas, their principal place of business is Houston, and all relevant documents are in Houston and/or the United Kingdom. (D.I. 26 at 7-8) Indeed, the basis of their preference for the Southern District of Texas is that "Houston is the most convenient and cost-effective locale for hearings or trial." (D.I. 26 at 8) However, given that "convenience" is separately considered in the transfer analysis, the court declines to elevate defendants' choice of venue over the choice of the plaintiff. That plaintiff's have historically been accorded the privilege of choosing their preferred venue for pursuing their claims remains a significant factor.
A claim for patent infringement arises wherever someone has committed acts of infringement, to wit, "makes, uses, offers to sell, or sells any patented invention" without authority. See generally 35 U.S.C. § 271(a); Red Wing Shoe Co., Inc. v. Hockerson-Halberstadt, Inc., 148 F.3d 1355, 1360 (Fed.Cir.1998) (an infringement claim "arises out of instances of making, using, or selling the patented invention"). Plaintiff alleges infringing activity by defendants in multiple states, including Washington, California, Louisiana, Delaware, and Michigan. Defendants argue that because plaintiff's complaint does not specify a particular locale of alleged infringement, the best measure is where customers are located and where jobs are conducted. (D.I. 26 at 11) The court disagrees. Defendants admit to engaging in infringing conduct in Delaware. (D.I. 34 at 13) That fact negates the argument that the alleged infringement is focused in the Texas Gulf Coast region.
The Third Circuit in Jumara indicated that, in evaluating the convenience of the parties, a district court should focus on the parties' relative physical and financial condition. In this case, defendant Cokebusters alleges that it is a "fraction of the size of Quest." (D.I. 26 at 8) On the other hand, plaintiff contends that defendant Clean Harbors is part of a $3.5 billion revenue company. (D.I. 34 at 10) Defendant Cokebusters further asserts that "requiring
With respect to the convenience of the witnesses, it is not whether witnesses are inconvenienced by litigation but, rather, whether witnesses "actually may be unavailable for trial in one of the fora" that is the relevant consideration in this analysis. Jumara, 55 F.3d at 879. Defendants argue that more than a dozen refining companies are located in Texas and that Houston is within driving distance for any potential non-party witnesses who live in Texas or Louisiana. (D.I. 26 at 9) They further contend that most refineries and a number of their customers in this country are in Texas or in the Gulf Coast region, claiming that refinery customers are key fact witnesses and that this case should be decided in Texas, where the affected customers can be heard.
The Third Circuit in Jumara advised that the location of books and records is only determinative if "the files c[an] not be produced in the alternative forum." Jumara, 55 F.3d at 879. Defendants assert that documents relevant to its business, operations, marketing, financials, and customer service are accessible and managed in Texas. (D.I. 26 at 9) However, consistent with the realities of modern technology, this court's view is that virtually all businesses maintain their books and records in electronic format readily available for review and use at any location. Indeed, there is nothing in the record that indicates that the parties have experienced any difficulty conducting discovery thus far, which has required a significant amount of transmission of documents from both parties. With respect to trial, defendants fail to show how these documents are incapable of being presented at trial in Delaware.
The court recognizes that trial in Texas may be easier and less expensive for defendants, where their operations are located. Trial in Texas would not be burdensome for plaintiff, since it also maintains offices and conducts business in Texas despite having its principal place of business in Washington. (D.I. 34 at 12; D.I. 26 at
With respect to administrative difficulty,
The remaining Jumara public interest factors — the enforceability of a judgment, the public policies of the fora, and the familiarity of the judge with state law-carry little weight in this transfer analysis, as they are mostly neutral or largely irrelevant to patent cases. The parties agree on this point. (D.I. 26 at 13; D.I. 34 at 14)
In sum, defendants have the burden of persuading the court that transfer is appropriate, not only for its convenience but in the interests of justice. In this case, plaintiff chose a legitimate forum which both defendants have in common — their state of incorporation. As is usual in these cases, the convenience factors do not weigh in favor of transfer because discovery is a local event and trial is a limited event.
At Wilmington this 8
IT IS ORDERED that defendants' motion to transfer venue (D.I. 25) is denied.