A plaintiff files a lawsuit in federal court in State X. The lawsuit is against a corporation that is incorporated in State Y and has its principal place of business in State Z. The events leading to the lawsuit occurred entirely in State Y. State X is neither the defendant’s state of incorporation nor its principal place of business, and no events relevant to the case occurred there. The defendant files a motion to transfer the case to State Y, asserting that venue in State Y is more appropriate. How should the court rule?
Grant the motion and transfer the case to State Y, as venue is appropriate in the district where a substantial part of the events occurred.
Grant the motion and transfer the case to State Z, where the defendant’s principal place of business is located.
Deny the motion because the court where the plaintiff filed the lawsuit has discretion to retain the case.
Deny the motion because the lawsuit could also have been filed in the defendant’s principal place of business in State Z.
The answer is correct because the general venue statute, 28 U.S.C. § 1391, specifies that a civil action may be brought: (1) in a judicial district where any defendant resides, if all defendants reside in the same state; (2) in a district where a substantial part of the events or omissions giving rise to the claim occurred; or (3) if neither of the above applies, in a district where any defendant is subject to personal jurisdiction. Here, venue in State Y is most appropriate because it is where a substantial part of the events occurred. Although State Z is the defendant’s principal place of business and would also be acceptable, State X is improper because it satisfies none of the venue criteria. Venue transfer via 28 U.S.C. § 1404(a) is proper to ensure the case is heard where it is convenient and suitable under the statute.
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What is 28 U.S.C. § 1391 and what does it cover?
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What is the significance of 'venue' in a lawsuit?
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What is 28 U.S.C. § 1404(a) and how does it relate to venue?