BNSF Railway Co. v. OOCL (USA), Inc.

667 F. Supp. 2d 703, 2009 U.S. Dist. LEXIS 95676, 2009 WL 3294859
CourtDistrict Court, N.D. Texas
DecidedOctober 14, 2009
Docket3:09-cv-00348
StatusPublished
Cited by14 cases

This text of 667 F. Supp. 2d 703 (BNSF Railway Co. v. OOCL (USA), Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BNSF Railway Co. v. OOCL (USA), Inc., 667 F. Supp. 2d 703, 2009 U.S. Dist. LEXIS 95676, 2009 WL 3294859 (N.D. Tex. 2009).

Opinion

ORDER DENYING MOTION TO TRANSFER

TERRY R. MEANS, District Judge.

Pending before the Court is the Motion to Transfer Venue (doe. # 6) filed by defendant OOCL (USA), Inc. After review, the Court concludes that OOCL has not made a sufficient showing of good cause to support its motion to transfer. As a result, the Court will deny the motion.

I. Background

Ihara Chemical Industry Company, Ltd. (“Ihara”), or Bayer Cropscience, LP (“Bayer”), contracted with Suttons International (NA), Inc. (“Suttons”), acting as a non-vessel owning common carrier, for the carriage of o-chlorobenzlchloride. Suttons was to transport the chemical from Tokyo, Japan, to Kansas City, Missouri, by way of a Los Angeles port. Suttons contracted with OOCL, a for-hire carrier of cargo, to ship the chemical from Tokyo to Los An-geles. In turn, OOCL contracted with BNSF Railway Company (“BNSF”) to ship the chemical from Los Angeles to Kansas City by rail.

The chemical, stored in four tank containers, was loaded on an from Tokyo to Los Angeles, the containers were discharged to be transported by BNSF to Kansas City. But during the trip from Los Angeles to Kansas City, it was discovered that one of the containers was leaking. 0-chlorobenzlchloride is apparently a toxic and hazardous material. Consequently, a HAZMAT crew and local authorities responded to the site of the leak, assisting in completing the transportation of the chemical to Kansas City and containing the related chemical spill. The spill led to the evacuation of some houses, the medical treatment of approximately a dozen BNSF employees, and an investigation into the spill’s environmental impact. Ultimately, a clean-up effort was undertaken.

After the spill, OOCL filed suit in the United States District Court for the Southern District of New York against Suttons, Bayer, and Ihara seeking a judgment that these entities must indemnify and hold OOCL harmless for any liability assessed against it as a result of the spill. OOCL further sought damages and expenses directly or indirectly arising from the spill that were caused by any negligence, breach of contract, or breach of warranty by these entities. According to OOCL, cargo moved under its agreement with Suttons is subject to the terms of OOCL’s bill of lading. Generally, the bill of lading provides OOCL with a right of indemnification against any “merchant.” OOCL argues that Suttons, Bayer, and Ihara all fall within the bill of lading’s definition of “merchant.”

Ihara was the next to file suit — a declaratory-judgment action in the United States District Court for the District of Kansas. In that action, Ihara seeks, among other things, a judgment allowing it to perform *707 destructive testing on the storage tank involved in the spill to determine the cause of the leak.

BNSF then filed this suit in a Texas state court. BNSF argues that by failing to reimburse it for expenses incurred in relation to the spill, and by failing to indemnify it against third-party claims, OOCL has breached its contract with BNSF. BNSF further argues that OOCL was negligent in its inspection and selection of the storage tank involved in the spill. OOCL removed the case to this Court. Although as originally filed OOCL’s motion to transfer sought to have this case transferred to either the Southern District of New York or the District of Kansas, it has since abandoned its request for transfer to the District of Kansas.

II. Discussion

A. Standard for Transfer of Venue

OOCL has moved the Court for a transfer of venue under 28 U.S.C. § 1404(a). This statute provides that “for the convenience of the parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.” 28 U.S.C. § 1404(a). The first question under the change-of-venue statute is whether the suit originally could have been filed in the proposed transferee venue. See In re Horseshoe Entm’t, 337 F.3d 429, 433 (5th Cir.2003). Once this is established, it must be determined whether the convenience of the parties and witnesses and the interest of justice weigh in favor of the transfer. This determination must be made in light of the burden of proof created by plaintiffs choice of venue. See In re Volkswagen of Am., Inc., 545 F.3d 304, 315 n. 10 (5th Cir.2008) (plaintiffs choice of venue must “be treated as a burden of proof question”). The plaintiffs choice of venue is not an independent factor to be considered in a § 1404(a) analysis. Id. Instead, the plaintiffs choice “places a significant burden on the movant to show good cause for the transfer.” Id.

“When viewed in the context of § 1404(a), to show good cause means that a moving party, in order to support its claim for a transfer, must satisfy the statutory requirements and clearly demonstrate that a transfer is ‘[f]or the convenience of parties and witnesses, in the interest of justice.’ ” Id. (quoting § 1404(a), alterations in Volkswagen). The determination of whether good cause has in fact been established “turns on a number of public and private interest factors.” Action Indus., Inc. v. United States Fidelity & Guaranty Company, 358 F.3d 337, 340 (5th Cir.2004). The private concerns 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 trial of a case easy, expeditious, and inexpensive. The public concerns include: (1) the administrative difficulties flowing from court congestion; (2) the local interest in having localized controversies 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 conflict of laws or the application of foreign law. Id. These factors are neither exhaustive nor exclusive, and none of them is dispositive. See id.; see also In re Volkswagen, 545 F.3d at 315. Even so, consideration of these factors is “appropriate for most transfer cases.” In re Volkswagen, 545 F.3d at 315.

B. Analysis

1. Propriety of Proposed Transferee Venue

The first issue in analyzing a motion to transfer venue under § 1404(a) is whether *708 the suit could have originally been filed in the proposed transferee court. See In re Horseshoe Entm’t, 337 F.3d 429, 433 (5th Cir.2003).

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667 F. Supp. 2d 703, 2009 U.S. Dist. LEXIS 95676, 2009 WL 3294859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bnsf-railway-co-v-oocl-usa-inc-txnd-2009.