MARK J. DINSMORE, Magistrate Judge.
This matter is before the Court on Defendant's Motion to Transfer Case Under 28 U.S.C. Section 1404(a) to the United States District Court for the Northern District of Georgia, Atlanta Division. [
Plaintiff Badger Daylighting Corp. ("Badger") filed suit against Defendant Gary Palmer for alleged violations of a non-compete agreement and various tort and equitable theories. [
Badger filed suit in the Marion Superior Court on May 24, 2019. [
As provided by 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 or to any district or division to which all parties have consented." In determining the motion, the Court balances three factors: (1) the convenience of the parties; (2) the convenience of the witnesses; and (3) the interests of justice. Yummy Yogurt Indy, LLC et al. Orange Leaf Licensing, et al., 2015 WL 1243732, 2-3 (S.D. Ind. 2015). "The calculus changes, however, when a party seeks to invoke or oppose a valid forum-selection clause." Atl. Marine Constr. Co., Inc. v. U.S. Dist. Court for the W. Dist. of Tex., et al, 571 U.S. 49, 63 (2013). "When parties agree to a forum-selection clause, they waive the right to challenge the preselected forum as inconvenient or less convenient for themselves or their witnesses, or for their pursuit of the litigation." Atl. Marine, 571 U.S. at 64. "As a consequence, a district court may consider arguments about public-interest factors only." Id.
Defendant asks the Court to grant transfer of this case to the Northern District of Georgia. [
The Defendant makes the argument that Atlantic Marine does not apply to the forumselection clause at issue. [Dkt. 41 at 1]. In Atlantic Marine, a Virginia and Texas corporation entered into an agreement which included a forum-selection clause indicating all disputes between the parties be litigated in Virginia. Atl. Marine, 571 U.S. at 53-54. However, when a dispute arose, the Texas corporation filed suit in Texas, not in the designated forum. The Supreme Court held that when parties enter into a valid forum-selection clause the appropriate venue is the agreed upon forum, unless some overwhelming public-interest exists dictating against that forum. Id. at 66.
Defendant cites cases which interpret Atlantic Marine to be an applicable framework only with regard to mandatory, but not permissive, forum-selection clauses. [Dkt. 41 at 2]; see GDG Acquisitions, LLC v. Got't of Belize, 749 F.3d 1024, 1029-30 (11th Cir. 2014). Although Atlantic Marine does not expressly make this distinction, the language "when a plaintiff agrees by contract to bring suit only in a specified forum" has led courts to interpret Atlantic Marine to apply only to mandatory forum-selection clauses. Atl. Marine, 571 U.S. at 63 (emphasis added).
However, contrary to Defendant's assertions, the Agreement between Defendant and Badger designates a mandatory forum for which disputes shall be litigated. The language of the agreement is as follows:
[Dkt. 35-1 at 4] (emphasis added).
Defendant points to the opinion in Heckler & Koch where the forum-selection clause reads, "the Southern District shall retain jurisdiction to enforce this Agreement." Heckler & Koch, Inc., v. German Sport Guns GmbH, 71 F.Supp.3d 866, 899 (S.D. Ind. 2014). In the Heckler & Koch opinion, the court placed emphasis on the language "retain" in the forumselection clause. Id. at 900. The court found that the language "Southern District shall retain jurisdiction . . . grants jurisdiction to this Court, but in a non-exclusive fashion." Id.
Conversely, the language in the disputed Agreement states that "any disputes . . . shall be brought and heard," provides for an exclusive forum in which the dispute can be litigated. The Defendant argues the forum-selection clause needs words like "exclusive," "only," or "solely" in order to be an effective mandatory provision. [Dkt. 41 at 4]. However, this argument falls flat when looking to the language of the disputed agreement in the Atlantic Marine case. The forumselection clause in Atlantic Marine states that disputes between the parties "shall be litigated in the Circuit Court for the City of Norfolk, Virginia, or the United States District Court for the Eastern District of Virginia, Norfolk Division." Atl. Marine, 571 U.S. at 53. The Supreme Court found this forum-selection clause to be valid and enforceable even without words like "exclusive," "only," or "solely."
This Court is unable to find any noteworthy differences between the language in Defendant and Badger's forum selection clause, and the language of the forum selection clause at issue in Atlantic Marine. Counsel for the Defendant is cautioned to be mindful in the future, as this argument borders on being patently frivolous and comes dangerously close to violating Federal Rule of Civil Procedure Rule 11(b)(2). Thus, this Court concludes that the forumselection clause in the Agreement is
Under 28 U.S.C. § 1404(a), the district court may transfer civil actions to another appropriate district or division; however, "[t]he calculus changes [] when the parties' contract contains a valid forum-selection clause, which `represents the parties' agreement as to the most proper forum.'" Atl. Marine, 571 U.S. at 63. The Supreme Court articulates that "[w]hen parties agree to a forum-selection clause, they waive the right to challenge the preselected forum as inconvenient or less convenient for themselves or their witnesses, or for their pursuit of the litigation." Id. at 62. For this reason, the court "must deem the private-interest factors to weigh entirely in favor of the preselected forum." Id. "As a consequence, a district court may consider arguments about public-interest factors only . . . . Because those factors will rarely defeat a transfer motion, the practical result is that forum-selection clauses should control except in unusual cases." Id. Atlantic Marine changes the §1404(a) standard when a valid forum-selection clause exists. No longer does the Court weigh the convenience of the parties or the convenience of the witnesses; instead, the court focuses solely on the public-interests to determine if a case should not be heard in the forum to which parties agreed. Id. at 62-64. While the Supreme Court recognizes "it is `conceivable in a particular case' that a district court `would refuse to transfer a case notwithstanding the counterweight of a forum-selection clause,' such cases would not be common." Id. at 64 (citing Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 30-31 (1988)). The Supreme Court draws a hard line when it comes to forum-selection clauses because the selected forum may have played a part in the parties' negotiations, and "may have affected how they set monetary and other contractual terms" or could "have been a critical factor in their agreement to do business together in the first place. In all but the most unusual cases, therefore, `the interest of justice' is served by holding parties to their bargain." Id. at 66.
This Court weighs the following public-interest factors, (1) "the court's familiarity with the applicable law," (2) "the speed at which the case will proceed to trial," and (3) "the desirability of resolving disputes in the region in which they arose." First Nat'l Bank v. El Camino Res., Ltd., 447 F.Supp.2d 902, 912 (N.D. Ill. 2006). Because the Supreme Court has clearly stated that arguments about public interest are the only arguments to be considered in valid forum-selection clause cases, it is the
In assessing the three public-interest factors, there is no evidence that "overwhelmingly disfavor[s]" holding the parties to the agreed forum. Atl. Marine, 571 U.S. at 67. The Defendant argues factors of "docket congestion," "local interest," and a "forum that is at home with the law" should persuade the Court to transfer the case to the Northern District of Georgia. [Dkt. 41 at 7-10]. The first public-interest factor being the court's familiarity with applicable law, which the Defendant has labeled the "forum that is at home with the law," is typically a non-issue in federal courts. As set forth in Atlantic Marine, "federal judges routinely apply the law of a State other than the State in which they sit." Id. The district judge in this case has many years of experience and is fully capable of applying Georgia law if appropriate. For this reason, the Court finds no persuasive argument as to the Southern District of Indiana being unable to apply Georgia law as appropriate and therefore no overwhelming public-interest in the matter.
The second factor this Court weighs in assessing the public-interest in transferring the case from the designated forum is the efficiency with which the court may resolve the matter, as the Defendant argues that "docket congestion" mandates transfer. The Defense appropriately depicts the high case-load experienced in the Southern District of Indiana.
The third and final factor this Court weighs is the desirability of resolving the conflict where it arose, which the Defendant contends is in Georgia. While Georgia has a vested interest in resolving a conflict that occurred within its borders, Indiana has an equally vested interest ensuring its corporations are protected. See First Nat'l Bank, 447 F. Supp. 2d at 914. Badger has its principal place of business in Brownsburg, Indiana. [Dkt. 24 at 2]. Because both states have an interest in the dispute, the factor "weighs neither for nor against transfer." Id.
After assessing all three factors of public-interest for transferring the case out of the Southern District of Indiana to the Northern District of Georgia, the Court finds no interest weighing in favor of transfer. Therefore, the public-interest comes nowhere near the standard of "overwhelmingly" favoring transfer. As stated in Atlantic Marine, "[b]ecause [these publicinterest] factors will rarely defeat a transfer motion, the practical result is that forum-selection clauses should control except in unusual cases." Atl. Marine, 571 U.S. at 64. The employment dispute and Non-Compete Agreement between Defendant and Badger do not constitute an "unusual case." Id.
As outlined by the Supreme Court in Atlantic Marine, because the dispute involves a valid forum-selection clause, only the public-interest factors are to be considered. There is no public-interest overwhelmingly in favor of transferring the case from the Southern District of Indiana to the Northern District of Georgia. Therefore, because both parties waived the right to challenge the preselected forum as inconvenient for themselves or their witnesses, or in pursuit of the litigation, and because public-interest factors rarely defeat forum-selection clauses,
Based on the foregoing, the Court
Badger requested this Court grant reasonable attorneys' fees; however, it failed to cite any basis for an entitlement to such fees. If such entitlement exists, Badger may file a motion for such fees within
SO ORDERED.