DAVID ALAN EZRA, District Judge.
Before the Court is a Motion to Dismiss and Motion to Transfer Venue filed by Defendant Pace Energy Solutions, Inc. ("Defendant") (Dkt. # 13). The Court held a hearing on the Motions on May 13, 2015. At the hearing, Richard E. Booth, Esq., appeared on behalf of Plaintiff Clayton Williams Energy, Inc. ("Plaintiff"), and Anna E. Brandl, Esq., and Charles S. Liberis, Esq., appeared on behalf of Defendant. After careful consideration of the supporting and opposing memoranda and the parties' arguments at the hearing, the Court, for the reasons that follow,
In February 2008, Pace Data Corporation ("Pace Data") entered into a verbal contract with Plaintiff to provide data analysis and processing services. ("Kimbrough Aff.," Dkt. # 13-2 ¶ 4.) Specifically, Pace Data agreed to evaluate and digitize land title and lease information related to properties owned by Plaintiff and key the data into an electronic mapping program that would allow Plaintiff to digitally access the title and lease information through an on-screen map. ("Am. Compl.," Dkt. # 10 ¶ 5.) While the substance of the agreement was verbal, the parties also entered into a written confidentiality agreement on February 14, 2008. (Kimbrough Aff. ¶ 5; "Uzell Aff.," Dkt. # 8 at 2).
In December 2010, Pace Data was closed and Defendant assumed its obligations under the verbal contract.
Plaintiff alleges that in May 2014, it discovered that the system used by Defendant to store Plaintiff's confidential information had security issues, and hired a third party to design a web-based server to allow Plaintiff to securely access its confidential information. (
Plaintiff filed suit in the 441st Judicial District Court of Midland County, Texas on February 19, 2015. (Dkt. # 1 at 6.) On April 2, 2015, Defendant removed the case to this Court based on the Court's diversity jurisdiction. Plaintiff filed an Amended Complaint on April 21, 2015, bringing claims against Defendant for breach of contract and conversion. (Am. Compl. ¶¶ 13-20.) Plaintiff seeks damages, attorney's fees, and an injunction prohibiting Defendant from altering or destroying any of Plaintiff's confidential information and related data and requiring Defendant to deliver all of Plaintiff's proprietary information to Plaintiff. (
Defendant filed the instant Motion to Dismiss for improper venue and Motion to Transfer Venue on May 6, 2015. (Dkt. # 13.) Plaintiff filed a Response on May 11, 2015. (Dkt. # 15.)
Defendant argues that 28 U.S.C. § 1391 governs whether venue is proper in this action, and argues that venue is improper in the Western District of Texas because Defendant does not reside in the district and because a substantial part of the events or omissions giving rise to the claim did not occur in the district. (Dkt. # 13-1 at 4-5.) In a removed action, however, venue is governed by 28 U.S.C. § 1441(a).
For the convenience of parties and witnesses, 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). "Section 1404(a) is intended to place discretion in the district court to adjudicate motions for transfer according to an individualized, case-bycase consideration of convenience and fairness."
"The preliminary question under § 1404(a) is whether a civil action `might have been brought' in the destination venue."
A plaintiff=s choice of venue is not an independent factor in the venue transfer analysis, and courts must not give inordinate weight to a plaintiff=s choice of venue.
Defendant requests that this case be transferred to the Pensacola Division of the Northern District of Florida pursuant to § 1404(a), arguing that the location of evidence and potential witnesses in Pace, Florida makes the Northern District of Florida a clearly more convenient forum. (Dkt. # 13-1 at 8.) There is no dispute that this case could have been brought in the Northern District of Florida, where Defendant has its principal place of business and therefore "resides" for the purpose of 28 U.S.C. § 1391. Defendant must also "clearly demonstrate that a transfer is for the convenience of parties and witnesses, in the interest of justice."
The first private factor requires a court to determine which of the two venues provides easier access to relevant sources of proof. Defendant argues that the sources of proof are primarily found in its Pace, Florida offices, where it keeps the servers that store the data at issue in this case. (Dkt. # 13-1 at 9.) Defendant also argues that many of the witnesses involved are its officers and employees, who reside in the Northern District of Florida. (
The second factor addresses the availability of compulsory process to secure the attendance of witnesses. Under Federal Rule of Evidence 45, a subpoena may compel a non-party witness to attend a trial more than 100 miles away from the witness's residence or place of employment only if the trial is within the state where the person resides and the witness would not incur substantial expense to travel to the trial. Fed. R. Civ. P. 45(c)(1). Additionally, a subpoena may command a non-party to attend a hearing or deposition only if it is within 100 miles of where the person works or resides.
Here, Brian Kimbrough ("Kimbrough"), Defendant's President, attests that Defendant was forced to lay off nearly all of its employees following the termination of the verbal agreement with Plaintiff, and currently employs only one employee. (Kimbrough Aff. ¶ 13.) Such former employees, if they continued to reside in Florida, would be non-party witnesses outside of the Midland-Odessa Division's power to subpoena for either deposition or trial. Defendant has not, however, specified which of its former employees are potential non-party witnesses, what such witnesses would testify to, or where they currently reside. The Court is therefore unable, absent additional information regarding Defendant's potential non-party witnesses, to find that this factor weighs in favor of transfer.
The third private factor considers the cost of attendance for willing witnesses, which has been recognized as "the most important factor under § 1404(a)."
The final private factor covers all other practical problems. Here, Defendant argues that the Court should consider the relative resources of the parties, characterizing itself as a "small, private mom-and-pop outfit" that is "struggling to stay solvent and remain open," and stating that it would be subject to severe hardship if required to litigate in the Western District of Texas. (Dkt. # 13-1 at 9; Kimbrough Aff. ¶ 16.) Plaintiff, by contrast, is "a publicly traded energy company." (Dkt. # 13-1 at 9.) Defendant's financial circumstances, while regrettable, are not relevant to the venue analysis under § 1404(a). Defendant essentially argues that its preferred venue should be favored because Plaintiff is better able to bear the additional costs associated with litigating in a distant location. In general, however, "a transfer should not be made where the only practical effect is to shift inconvenience from the moving party to the non-moving party."
The first public factor considers the relative congestion of the courts in question. "Generally, this factor favors a district that can bring a case to trial faster."
The second public factor considers the local interest in the litigation. "Jury duty is a burden that ought not to be imposed upon the people of a community which has no relation to the litigation."
The third and fourth public factors consider familiarity with governing law and avoidance of unnecessary conflicts of law. The confidentiality agreement is governed by Texas law, and Plaintiff has represented that "the parties agreed that Texas law will apply." (Dkt. # 8 at 7, Ex. A ¶ 8.) Because the Western District of Texas is more familiar with Texas law than a Florida court, this factor weighs against transfer. The parties have not pointed to any potential issues regarding conflicts of law, and this factor is therefore neutral.
Based on its analysis of the private and public factors, the Court finds that Defendant has failed to clearly demonstrate that the Pensacola Division of the Northern District of Florida is a more convenient venue. None of the private factors weigh in favor of transfer. Of the public factors, the relative congestion of the courts weighs only lightly in favor of transfer, the familiarity with governing law weighs against transfer, and the remaining public factors are neutral. The Court therefore
For the foregoing reasons, the Court