Apache Products Co. v. Employers Insurance of Wausau

154 F.R.D. 650, 1994 U.S. Dist. LEXIS 6385, 1994 WL 182862
CourtDistrict Court, S.D. Mississippi
DecidedApril 21, 1994
DocketCiv. A. No. 4:93-CV-66(L)(N)
StatusPublished
Cited by9 cases

This text of 154 F.R.D. 650 (Apache Products Co. v. Employers Insurance of Wausau) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Apache Products Co. v. Employers Insurance of Wausau, 154 F.R.D. 650, 1994 U.S. Dist. LEXIS 6385, 1994 WL 182862 (S.D. Miss. 1994).

Opinion

MEMORANDUM OPINION AND ORDER

TOM S. LEE, District Judge.

This cause is before the court on the motion of defendant Stepan Company to transfer this cause to the United States District Court for the Northern District of Illinois pursuant to 28 U.S.C. § 1404(a). Defendant Employers Insurance of Wausau (Wausau) has moved separately to sever the claims against it from those asserted against its co-defendant. Plaintiff Apache Products, Inc. (Apache) has responded in opposition to both motions. The court, having now considered the motions and the memoranda of authorities, together with attachments, submitted by the parties, concludes that the motion to sever and the motion to transfer should be granted.

Apache is a Florida corporation with its principal place of business in Meridian, Mississippi. Apache is in the business of manufacturing rigid foam insulation and other products, and has manufacturing facilities located in Meridian, Union and Byram, Mississippi, as well as in six other states, including one in Belvidere, Illinois. In the fall of 1992, Apache purchased from defendant Stepan a product identified as PS-2352 polyol, for use in its Belvidere plant in the manufacture of foam insulation. According to Apache, the PS-2352 purchased from Stepan was defective, but before the defect was discovered, the insulation which Apache had manufactured using Stepan’s product was sold and installed on roofs in a number of states. Many of the roofs failed and were replaced by Apache at a cost of over $2,000,000.

In the present action, Apache asserts that Stepan’s product was defective and alleges causes of action against Stepan for breach of express and implied warranties and for negligence as a predicate for recovering the costs it incurred in replacing the roofs alleged to have failed as a consequence of the defect in the PS-2352. Moreover, in addition to its claims against Stepan, Apache has named as a defendant Wausau, its insurer under a commercial general liability policy, charging that Wausau has coverage under its policy for the damages suffered by Apache results ing from the defective insulation yet has failed and refused to provide coverage for Apache’s losses or defend Apache from claims asserted against it for roof failures.

Stepan requests that the court transfer this case to the United States District Court for the Northern District of Illinois under 28 U.S.C. § 1404(a), which authorizes the court, “for the convenience of the parties and witnesses, and in the interests of justice,” to transfer an action to any district in which it could have been brought. There is [653]*653no question but that this action could have been brought in the Illinois district court. The question, therefore, is whether the requested transfer would serve the convenience of the parties and witnesses, and be in the interests of justice. A decision on these issues requires that the court balance the parties’ competing interests and is guided by a number of factors which have been identified as relevant in considering requests for transfer. These factors are:

(1) the relative ease of access to sources of proof;
(2) the availability of compulsory process, where necessary, over witnesses;
(3) the cost of obtaining witnesses for attendance at trial;
(6) the administrative difficulties of the courts;
(7) the local interest of the controversy, and the imposition of jury duty on citizens residing in a community having no relation to the litigation;
(8) the propriety of having the action tried in a forum “at home” with the state law governing the ease;
(9) the plaintiffs choice of forum;
(10) the possibility that trial in the original forum will result in inconvenience, vexation, oppression, or harassment of the defendants; and
(11) all other practical problems that make the trial of a case easy, expeditious, and inexpensive.

Fullman v. AAA Cooper Transp. Co., 732 F.Supp. 54, 55 (N.D.Miss.1990) (quoting Radio Santa Fe, Inc. v. Sena, 687 F.Supp. 284, 287 (E.D.TX 1988)). The court’s task is to weigh these factors and to determine whether, on balance, the proposed transferee district will provide a more convenient forum for the litigation.

The court’s analysis of these factors proceeds from the initial premise that the plaintiffs choice of forum is entitled to “great weight, especially if the forum [it] chooses is in the district in which [it] resides.” Sorrels Steel Co., Inc. v. Great Southwest Corp., 651 F.Supp. 623 (S.D.Miss.1986). As this court recognized in Sorrels, “[t]he plaintiffs privilege of choosing his venue, at the very least, places the burden on the defendants to demonstrate why the forum should be changed.” Id. But where the defendant does show that another forum is significantly more convenient for the parties and witnesses, and that there appear to be no substantial impediments otherwise to transfer, the plaintiffs choice of forum must give way and the court should not hesitate to order a transfer.

Here, Stepan has presented a forceful argument for transfer. Stepan is a Delaware corporation with its principal place of business in Illinois. The product which is at issue in this lawsuit, PS-2352, was developed and designed at Stepan’s Northfield, Illinois laboratories, and was analyzed by Stepan personnel at its plant in Elwood, Illinois. And though Apache’s principal place of business is in Mississippi, all of the polyol which Apache purchased from Stepan was shipped from Stepan’s Elwood plant to Apache’s facility in Belvidere, Illinois and was used by Apache exclusively at its Illinois plant. Apache’s orders for the product were placed from its Illinois plant, all sales were invoiced to its Illinois plant and all payments were made by checks issued from Apache’s Illinois plant and drawn on Apache’s account in an Illinois bank. In addition, most of the insulation which Apache manufactured using Step-an’s PS-2352 was sold in Illinois and used on roofs constructed in Illinois. All of these facts readily explain why the vast majority of proposed witnesses, both party and non-party, who may be expected to testify at a trial of this case are located in Illinois.

While all of the factors identified supra as are pertinent in a given case are to be considered, some are of greater importance, and entitled to more weight than others. The “most significant factor,” though, as this court has recognized many times, is the convenience of party and non-party witnesses. Sorrels, 651 F.Supp. at 629 (citing Paul v. International Precious Metals Corp., 613 F.Supp. 174, 179 (S.D.Miss.1985)). In this case, that factor weighs decidedly and heavily in favor of transfer.

Stepan advises that a number of its employees with knowledge relating to the ere[654]*654ation and development, analysis and sales of PS-2352 reside in Illinois. That includes seven prospective witnesses with information as to the creation and development of the product, in addition to the laboratory manager at Stepan’s Elwood plant, Dave E. Rap-son, who supervised the analysis of the product shipped to Apache.

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Bluebook (online)
154 F.R.D. 650, 1994 U.S. Dist. LEXIS 6385, 1994 WL 182862, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apache-products-co-v-employers-insurance-of-wausau-mssd-1994.