Monday, December 29, 2008

FEDERAL CIRCUIT TEACHES THE E.D. OF TEXAS ABOUT FORUM NON CONVENIENS

In re TS Tech USA Corporation, [Miscellaneous Docket No. 888] (December 29, 2008) [RADER. Michel, Prost] The Federal Circuit granted a writ of mandamus because the district court clearly abused its discretion in denying TS Tech’s motion to transfer venue pursuant to 28 U.S.C. § 1404(a).
DISCUSSION: The Federal Circuit applied The Fifth Circuit applies the “public” and “private” factors for determining forum non conveniens when deciding a § 1404(a) venue transfer question. The “private” interest factors include (1) the relative ease of access to 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 a trial easy, expeditious and inexpensive. The “public” interest factors to be considered 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 conflicts of laws or in the application of foreign law. The Federal Circuit identified four errors committed by the district court: First, the district court gave too much weight to Lear’s choice of venue under Fifth Circuit law. Second the district court ignored Fifth Circuit precedent in assessing the cost of attendance for witnesses, including additional travel time, meal and lodging expenses; and time away from employment, for which the Fifth Circuit established a 100-mile rule. Third, the district court erred by reading out of the § 1404(a) analysis the factor regarding the relative ease of access to sources of proof. Finally, the district court disregarded Fifth Circuit precedent in analyzing the public interest in having localized interests decided at home.

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