DAVID C. KEESLER, Magistrate Judge.
Plaintiffs Bobby Jo Rosinbaum ("Rosinbaum") and Robert William Morgan, Jr. ("Morgan") (collectively "Plaintiffs") initiated this action with the filing of a "Class And Collective Action Complaint" (Document No. 1) (the "Complaint") on December 1, 2015. The Complaint contends that Franklin Baking Co., LLC ("Franklin") and Flowers Foods, Inc. ("Flowers") (collectively "Defendants") have misclassified "their North Carolina bakery distributor drivers ("Distributors") as "independent contractors." (Document No. 1, p.1). Specifically, the Complaint asserts claims for: violation of the Fair Labor Standards Act of 1938 (the "FLSA"), 29 U.S.C. § 201, et seq.; declaratory judgment; violation of the North Carolina Wage and Hour Act ("NCWHA"), N.C. Gen. Stat. § 95-25.1, et seq.; and violation of the North Carolina Unfair and Deceptive Trade Practices Act ("UDTPA"), N.C. Gen. Stat. § 75-1.1. (Document No. 1). Defendants Flowers and Franklin each filed an "Answer And Additional Defenses . . ." (Document Nos. 13 and 15) on February 8, 2016.
On February 29, 2016, "Defendants' Motion To Transfer Venue" (Document No. 19) and "Memorandum Of Law In Support . . ." (Document No. 20) were filed. Defendants seek transfer to the United States District Court for the Eastern District of North Carolina, Southern Division ("Eastern District"), pursuant to 28 U.S.C. §1404(a). "Plaintiffs' Memorandum In Opposition To Defendants' Motion To Transfer Venue" (Document No. 36) was filed on March 17, 2016; and "Defendants' Reply . . ." (Document No. 38) was filed March 28, 2016.
The pending motion is now ripe for review and disposition.
Regarding a change of venue, 28 U.S.C. § 1404 provides that:
28 U.S.C. § 1404(a). In addition, previous decisions by this Court are instructive.
Defendants and their subsidiaries and affiliates are in the wholesale bakery business and rely on Distributors to deliver to and stock baked goods in grocery stores, mass retailers, and fast food chains. (Document No. 1, p.1). Plaintiffs challenge Defendants' classification of Distributors as independent contractors, and the denial of the rights, obligations, privileges, and benefits, including overtime compensation, owed to them as employees under state and federal laws. (Document No. 1, p.2).
Plaintiffs filed this Complaint as a class action pursuant to Fed.R.Civ.P. 23. (Document No. 1, p.12). Plaintiffs note that a Rule 23 Class was certified in
Plaintiff Rosinbaum is a resident of Pender County, North Carolina, works as a Distributor for Defendant Flowers, and operates out of a distribution center run by Defendant Franklin in Wilmington, North Carolina. (Document No. 1, p.2). Plaintiff Morgan is a resident of New Hanover County, North Carolina, works as a Distributor for Defendant Flowers, and also operates out of a distribution center run by Defendant Franklin in Wilmington, North Carolina. (Document No. 1, p.3).
Defendant Flowers is a Georgia corporation with its principal place of business in Thomasville, Georgia. (Document No. 1, p.3). Defendant Franklin is a North Carolina corporation with its principal place of business in Goldsboro, North Carolina.
Plaintiffs contend that "[v]enue is proper in this Court under 28 U.S.C. §§ 1391." (Document No. 1, p.4). However, Plaintiffs do not allege that either Defendant is a resident of the Western District of North Carolina ("Western District"); that a substantial part of the events, omissions, and/or property giving rise to these claims is situated in the Western District; or that there is no district in which this action could otherwise have been brought as provided in 28 U.S.C. 1391.
Both sides recognize that the Court must weigh eleven (11) case-specific factors, and that a court's decision on whether to transfer venue under 28 U.S.C. § 1404(a) is largely discretionary. (Document No. 19, p.2; Document No. 36, p.6). The factors to be considered in deciding whether to allow a change of venue are well-established, as set forth in the standard of review above. The undersigned weighs these factors as set forth below.
In most cases, the plaintiff's choice of forum should be given significant weight, and should not be disturbed unless the balance is strongly in favor of transfer.
Defendants first argue that "the Court owes no deference to Plaintiffs' choice of forum because their claims have no substantial relationship with this District." (Document No. 20, p.9). Defendants note that there are no factual allegations linking this matter to the Western District, or establishing the propriety of venue here.
In response, Plaintiffs state that they chose this forum because it is more efficient to litigate this case in the District where
Although Plaintiffs' brief cites this Court's decision in
Under these circumstances, Plaintiffs' choice of forum is entitled to less weight than might generally be accorded a plaintiff's choice of forum. The undersigned weighs this factor as neutral.
It is undisputed that Plaintiffs both reside in the Eastern District, and that Defendant Franklin's principal place of business is in the Eastern District. (Document No. 20, p.12; Document No. 36, p.11). However, Plaintiffs suggest that this factor should be given less weight because the parties and/or witnesses would only be required to travel "to a nearby or adjacent district." (Document No. 36, p.11) (quoting
In reply, Defendants correctly note that the Western District and the Eastern District are not adjacent, they are separated by the Middle District of North Carolina. (Document No. 38, p.6). Moreover, the locations at issue are unlikely to be considered "nearby."
The undersigned weighs this factor in favor of transfer.
Defendants argue that evidence relevant to this case, including documents, physical evidence, corporate witnesses, and third party witnesses, is located in the Eastern District. (Document No. 20, pp.12-13).
Plaintiffs acknowledge that some sources of proof are located in the Eastern District, but assert that many documents will come from Defendant Flowers, headquartered in Georgia. (Document No. 36, p.12). Plaintiffs go on to recognize that because documents are available electronically, the location of relevant documents is of minimal concern.
Defendants reply brief observes that Plaintiffs have not identified a single document or other piece of evidence located in the Western District, but have conceded substantial documentary evidence exists in the Eastern District. (Document No. 38, p.7).
The undersigned finds Defendants' arguments persuasive. This factor is weighed in favor of transfer.
Defendants argue that this is a "key" factor that heavily favors transfer. (Document No. 20, pp.13-14) (citing
The undersigned observes that like this case, the Court in
Plaintiffs argue that in order for this factor to carry weight, Defendants must generally identify a witness outside the Court's subpoena power who would be unwilling to submit to a deposition or travel for a deposition. (Document No. 36, p.14) (citing
In reply, Defendants also cite the
(Document No. 38, p.10) (quoting
In addition, Defendants' reply brief identifies five (5) potential non-party witnesses, and attaches a declaration from each. (Document No. 38, pp.12-13),
Plaintiffs do not identify any witnesses, or evidence, located in the Western District. (Document No. 36, pp.12-14).
Based on the information before the Court, the undersigned is convinced that transfer will better serve the convenience of the likely witnesses in this case. As such, this key factor weighs in favor of transfer.
The parties agree that in the event of a trial, it is unlikely a jury would need to view Franklin's bakeries or distribution centers, or any customer facilities. (Document No. 20, p.14; Document No. 36, p.15). However, Defendant argues that the Franklin bakery is more than 200 miles from Charlotte, and even though a view is unlikely, this factor still favors transfer. (Document No. 20, p.14) (citing
The undersigned is persuaded this factor slightly favors transfer.
The undersigned cannot foresee, and the parties have not identified, any concerns about the enforcement of a judgment. This factor is weighed as neutral.
The undersigned does not foresee, and the parties do not suggest, that there are any clear advantages or obstacles to a fair trial in either district. The parties should obtain a fair trial in either North Carolina court. As such, the undersigned finds this factor is neutral.
"Trials are never easy, expeditious, or inexpensive."
Defendants contend that the expense, inconvenience, and logistical challenges associated with transporting witnesses from the Eastern District to the Western District, in the event of a trial or hearing, favor transfer. (Document No. 20, p.15).
Plaintiffs contend that judicial economy is encompassed by this factor and that it is decisive in this case. (Document No. 36, p.7). Specifically, Plaintiffs assert that this factor weighs strongly against transfer because Judge Cogburn is "intimately familiar with the facts underlying the relationship between Distributors, Flowers, and Flowers subsidiaries." (Document No. 36, p.8). Plaintiffs contend that Judge Cogburn's familiarity is a key factor in the judicial economy analysis.
In reply, Defendants argue that where parties fail to show that consolidation is "reasonably likely," this factor does not weigh in favor of transfer. (Document No. 38, p.15) (citations omitted). Defendants note that Plaintiffs have not moved to consolidate this case with
Defendants effectively distinguish much of Plaintiffs' supporting authority, and note a recent decision rejecting venue before this Court, even though a similar action was also pending here. (Document No. 38, p.16) (citing
While Plaintiffs make a valid point that Judge Cogburn's familiarity with many of the issues in this case might support a finding of greater judicial economy if this Court keeps this matter, they do not argue that the issues are so complex that our distinguished and capable colleagues in the Eastern District would have any difficulty getting up to speed.
The undersigned further notes that this factor also requires the Court to consider expense and convenience. As addressed above, the location of the bulk of the evidence, witnesses, and the underlying events in the Eastern District, suggest that there will be less expense and inconvenience if this matter is transferred to the Eastern District.
The undersigned will weigh this factor as slightly favoring transfer.
Defendants note that while more civil cases have been filed and are pending in the Eastern District, the median time to disposition is still shorter there than in the Western District. (Document No. 20, p.15) (citing Document No. 19-5). Plaintiffs note that the Eastern District has 490 civil cases per judge and the Western District has 217 civil cases per judge. (Document No. 36, p.16) (citing Document No. 19-5). Plaintiffs also note that 3.9 percent of civil cases are over three years old in this district, while 16.3 percent of civil cases in the Eastern District are over three years old.
This factor weighs against transfer.
Defendants argue that this factor strongly favors transfer since the Eastern District is where the primary parties are located, the alleged underlying actions occurred, and where the majority of the in-state evidence lies. (Document No. 20, p.16). Plaintiffs assert that this factor is neutral because both districts have an interest in resolution of this case. (Document No. 36, p.16).
The undersigned finds this factor favors transfer.
The parties agree that there is no choice of law issue, and that this factor should be weighed as neutral. The undersigned agrees.
Based on the foregoing, and in accordance with the teachings of