KEITH STARRETT, District Judge.
For the reasons below, the Court
This is an interpleader action concerning the proceeds of a judgment previously entered by this Court. GuideOne Elite Insurance Company filed a declaratory judgment action concerning its obligations to Mount Carmel Ministries, Alpha Christian School, and Seaway Bank and Trust Company — their mortgagee — after a tornado caused heavy damage to insured property in Hattiesburg, Mississippi.
Three parties claim an interest in the insurance proceeds. First, Mount Carmel
Mount Carmel argues that the Court should enforce the forum-selection clauses in the Seaway loan documents, and that a transfer is appropriate under 28 U.S.C. § 1404(a).
First, State Bank argues that Mount Carmel's motion is untimely, citing Rule 12(b). The rule provides that a "motion asserting" the defense of improper venue "must be made before pleading if a responsive pleading is allowed." FED. R. CIV. P. 12(b). However, Mount Carmel did not file a motion to dismiss for improper venue under Rule 12(b)(3). Instead, it filed a motion to transfer under 28 U.S.C. § 1404(a). "[A] party may seek a § 1404(a) transfer of venue after filing its first responsive pleading." Allen v. U.S. Dep't of Homeland Sec., 514 F. App'x 421, 422 (5th Cir. 2013) (citing 14 Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 3829 (2012)); see also Smith v. Kyphon, Inc., 578 F.Supp.2d 954, 957 (M.D. Tenn. 2008) (defendants did not waive ability to bring a motion under § 1404(a) by failing to assert defense of improper venue in a Rule 12(b) motion). Mount Carmel's motion was timely.
District courts "have broad discretion in deciding whether to order a transfer" pursuant to 28 U.S.C. § 1404(a). In re Volkswagen of Am., 545 F.3d 304, 311 (5th Cir. 2008). The statute provides: "For the convenience of the 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." 28 U.S.C. § 1404(a).
The first question under Section 1404(a) is whether the case "might have been brought in the destination venue." In re Volkswagen of Am., 545 F.3d at 312. Interpleader cases under Rule 22 must meet the normal venue requirements of 28 U.S.C. § 1391. Lummis v. White, 629 F.2d 397, 400-01 (5th Cir. 1980), rev'd on other grounds, 457 U.S. 85, 102 S.Ct. 2325, 72 L. Ed. 2d 694 (1982). A civil action may be brought in:
28 U.S.C. § 1392(b). Mount Carmel made no attempt to demonstrate that this case "might have been brought" in Illinois under these venue rules. Therefore, it failed to meet the first requirement for transfer under Section 1404(a).
Even if Mount Carmel had demonstrated that this case could have been brought in Illinois, it would still be required to show "good cause" for a transfer. In re Volkswagen of Am., 545 F.3d at 315. Good cause has been defined as follows:
Id. To determine whether the transferee venue is clearly more convenient than the present venue, the Court considers various factors impacting the private and public interests in the case. Id.
The private interest factors are: (1) the relative ease of access to the sources of proof; (2) the availability of compulsory process to secure the attendance of witnesses; (3) the cost of attendance for willing witnesses; and (4) all other practical problems that make trial of a case easy, expeditious and inexpensive. The public interest factors are (1) the administrative difficulties flowing from court congestion; (2) the local interest in having localized interests decided at home; (3) the familiarity of the forum with the law that will govern the case; and (4) the avoidance of unnecessary problems of conflict of laws or in the application of foreign law.
Id. While these factors "are appropriate for most transfer cases, they are not necessarily exhaustive or exclusive," and none of them carry "dispositive weight." Id. Section 1404(a) "requires an individualized, case-by-case consideration of convenience and fairness." In re Royals Royce Corp., 775 F.3d 671, 678 (5th Cir. 2014).
"In the typical case not involving a forum-selection clause, a district court considering a § 1404(a) motion (or a forum non conveniens motion) must evaluate both the convenience of the parties and various public-interest considerations." Atlantic Marine Constr. Co., Inc. v. U.S. Dist. Court for the Western Dist. of Tex., 134 S.Ct. 568, 581, 187 L. Ed. 2d 487 (2014). But when the parties to a contract agree on a valid forum-selection clause, it "represents [their] agreement as to the most proper forum." Id. Accordingly, the "presence of a valid forum-selection clause requires district courts to adjust their usual § 1404(a) analysis . . . ." Id.
In re Lloyd's Register N. Am., Inc., 780 F.3d 283, 293-94 (5th Cir. 2015). Because the public-interest factors "will rarely defeat a transfer motion, the practical result is that forum-selection clauses should control except in unusual cases." Atlantic Marine, 134 S. Ct. at 581.
The forum-selection clause at issue here provides: "If there is a lawsuit, [Mount Carmel] agrees upon [Seaway's] request to submit to the jurisdiction of the courts of Cook County, State of Illinois." The clause unambiguously provides that Mount Carmel must submit to the jurisdiction of an Illinois court upon Seaway's request. State Bank — Seaway's successor-in-interest — has made no such request in this case. Therefore, the forum-selection clause has no effect, and the Court must consider both the public and private interest factors under Section 1404(a).
First, the Court must consider the private interest factors: "(1) the relative ease of access to the sources of proof; (2) the availability of compulsory process to secure the attendance of witnesses; (3) the cost of attendance for willing witnesses; and (4) all other practical problems that make trial of a case easy, expeditious and inexpensive." In re Volkswagen of Am., 545 F.3d at 315. Access to evidence is not a significant issue here, as this case involves few questions of fact. Mount Carmel did not identify any evidence that it would have trouble accessing if the case is heard in Mississippi. Likewise, it did not identify any specific witnesses whose attendance could not be secured by compulsory process or for whom the cost of attendance would be burdensome. In fact, Mount Carmel made no attempt to identify "practical problems" that would be caused by trying the case here. Therefore, the Court finds that the private interest factors do not weigh in favor of a transfer.
Next, the Court must consider public interest factors: "(1) the administrative difficulties flowing from court congestion; (2) the local interest in having localized interests decided at home; (3) the familiarity of the forum with the law that will govern the case; and (4) the avoidance of unnecessary problems of conflict of laws or in the application of foreign law." Id. Once again, Mount Carmel made no attempt to demonstrate that these factors weigh in favor of a transfer. Although this Court has little experience with Illinois law, Mount Carmel has not demonstrated that Illinois law would apply to any of the legal issues presented here. There are no court congestion issues of significance, and Mississippi has a greater local interest in this matter than Illinois because two of the three parties claiming a right to the insurance proceeds are Mississippi citizens. Accordingly, the private interest factors do not weigh in favor of a transfer.
Therefore, the Court concludes that a transfer would be inappropriate here. State Bank has not consented to an Illinois venue, and Mount Carmel has not demonstrated that this case could have been brought there in the first place. Moreover, neither the private nor the public interest factors weigh in favor of a transfer.
For these reasons, the Court
SO ORDERED AND ADJUDGED.