MARIANNE O. BATTANI, District Judge.
Plaintiff New England Life Insurance Company ("NELCO") filed an interpleader complaint against Richard Schiller, Robert Schiller, Andrew Schiller, and the estate of Maxine Schiller. The central issue of this complaint is a disputed one-third of a non-qualified variable annuity contract's surrender value interpled by NELCO pursuant to the Federal Interpleader Act, 28 U.S.C. §§ 1335, 2361.
Before the Court is Andrew Schiller's Motion for Change of Venue (Doc. 18). The Court has reviewed the pleading and finds oral argument will not aid in the resolution of this motion.
On April 30, 2004, Maxine Schiller purchased a Non-Qualified Variable Annuity Contract ("Annuity") issued on her life from NELCO. Her sons, Andrew, Robert, and Richard Schiller, were listed as the primary beneficiaries of the Annuity. On July 30, 2009, Maxine Schiller executed a Durable Power of Attorney ("DPOA") appointing Robert Schiller as her attorney regarding the Annuity. This allowed him to act on her behalf, even if she was not incapacitated.
On or about September 21, 2011, Robert Schiller sent a copy of the DPOA to NELCO, and, two days later, he executed an Annuity Withdrawal/Surrender Form terminating the Annuity Contract. This termination required NELCO to tender the full amount of the surrender value to the owner, Maxine Schiller, who died on September 26, 2011. Thereafter, an estate was opened in the Oakland County Probate Court in the name of Decedent.
According to NELCO, the net surrender value of the Annuity was $371,915. Because Andrew Schiller ("Defendant" or "Schiller") claims that Robert Schiller fraudulently terminated the Annuity Contract, NELCO paid the estate two-thirds of the surrender amount and interpled the remaining third. Robert and Richard Schiller are Michigan residents. Andrew Schiller is a Florida resident and owns and operates a business there. Schiller filed his motion asking the Court to transfer this action to the Middle District of Florida.
Under 28 U.S.C. § 1404(a), federal district court may transfer a civil action to "any other district or division where it might have been brought."
The party seeking a transfer of venue bears the burden of demonstrating by a preponderance of the evidence that fairness and practicality strongly favor a transfer of venue to a different forum.
In his Motion for Change of Venue, Schiller offers three alternative theories for dismissal. The Court observes that each of Schiller's requests is viewed through the scope of statutory interpleader. Statutory interpleader "enjoys liberal procedural rules including relaxed venue, personal jurisdiction and service or process requirements as well as broad discretion to enjoin overlapping litigation."
"The first question for a court when considering a motion under § 1404(a) is whether `the transferred action could have been brought in the transferee court.'"
Andrew Schiller argues that litigating in Michigan would constitute a "dire inconvenience" and would be "prohibitively expensive." (Doc. 19, p. 2). Courts may consider "the relative financial strength of the parties,"
Courts also assess "witnesses' convenience [a]s one of the most important factors in determining whether to grant a motion to change venue under § 1404(a)."
After balancing the interest of both parties and weighing the evidence, the Court finds that Schiller has not met his burden to overcome the presumption in favor of Plaintiff's choice of venue. Therefore, Defendant's Motion to Change Venue is denied, and the Court considers alternative arguments.
Schiller next argues that the Eastern District of Michigan lacks personal jurisdiction over him because he does not have "minimum contacts" with Michigan. His argument is misplaced, however, because Congress, through the Federal Interpleader Act, 28 U.S.C. § 2361, which authorizes nationwide service of process, confers nationwide personal jurisdiction to district courts.
In two final alternative theories, Schiller claims insufficient process and insufficient service of process per Fed. R. Civ. P. 12(b)(4) and 12(b)(5). Schiller was personally served on April 13, 2012 (Doc. 22, Ex. 9), rendering these alternative theories meritless.
Accordingly,