Dinan v. Alpha Networks, Inc.

803 F. Supp. 2d 71, 2011 U.S. Dist. LEXIS 4723, 2011 WL 180086
CourtDistrict Court, D. Maine
DecidedJanuary 18, 2011
DocketNo. 2:10-cv-00340-JAW
StatusPublished
Cited by1 cases

This text of 803 F. Supp. 2d 71 (Dinan v. Alpha Networks, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dinan v. Alpha Networks, Inc., 803 F. Supp. 2d 71, 2011 U.S. Dist. LEXIS 4723, 2011 WL 180086 (D. Me. 2011).

Opinion

ORDER ON MOTION TO TRANSFER

JOHN A. WOODCOCK, JR., Chief Judge.

The Court denies a California defendant’s motion to transfer a case involving an employment dispute to the federal district court for the Northern District of California.

I. STATEMENT OF FACTS

On July 21, 2010, Michael Dinan, a former employee of Alpha Networks, Inc. (Alpha), filed suit against Alpha in Maine Superior Court, Cumberland County, alleging that Alpha had violated Maine law and its employment contract by refusing to pay his wages and seeking back wages and liquidated damages. Notice of Removal at Ex. 1 (Docket # 1) (Compl). On August 13, 2010, Alpha removed the case to this Court based on diversity of citizenship. Notice of Removal. On September 1, 2010, Alpha moved to change venue, arguing that the case should be transferred to the Northern District of California because under the employment agreement California, not Maine law, applies and because under an Employee Proprietary Information and Inventions Agreement (Proprietary Agreement), Mr. Dinan consented to California jurisdiction. Alpha Networks, Inc.’s Mot. to Transfer to the Northern Dist. of Cal. (Docket # 10) {Alpha’s Mot.). Mr. Dinan responded on September 15, 2010. Michael Dinan’s Mem. of Law in Support of His Objection to Alpha Networks, Inc. ’s Mot. to Transfer to the Northern Dist. of Cal. (Docket # 16) {Di-nan’s Resp.). Alpha replied on September 29, 2010. Alpha’s Reply to Dinan’s Objection to Mot. to Transfer (Docket # 19) {Alpha’s Reply).

Michael Dinan, a resident of Portland, Maine, entered into an employment contract with Alpha, a California business, on November 11, 2005. Compl. ¶¶ 1-3. Mr. Dinan says he worked as a salesman for Alpha and under the terms of the employment agreement, he was entitled to receive bonuses equal to a percentage of the sales he generated for Alpha. Id. ¶¶ 5-6. He claims Alpha failed or refused to pay his bonuses for 2009 and for 2010. Id. ¶¶ 5-II. He therefore brought suit in Maine Superior Court to collect the extra wages [74]*74to which he claims he is entitled. Alpha tells a different story. However, for purposes of the motion, Alpha says that the case should be transferred to the Northern District of California because California law applies and because Mr. Dinan agreed to submit to California jurisdiction when he signed the Proprietary Agreement.

II. DISCUSSION

A. General Principles

Under 28 U.S.C. § 1404(a), a district court is authorized “[f]or the convenience of the parties and witnesses”, to transfer any civil action to any other district or division where it might have been brought. Section 1404(a) is intended to place discretion in the district court to adjudicate motions for transfer according to an “individualized, case-by-case consideration of convenience and fairness.” Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29, 108 S.Ct. 2239, 101 L.Ed.2d 22 (1988) (quoting Van Dusen v. Barrack, 376 U.S. 612, 622, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964)); Astro-Med, Inc. v. Nihon Kohden Am., Inc., 591 F.3d 1, 12 (1st Cir.2009).

In exercising discretion, courts often “divide the factors they consider into private and public categories.” 15 Charles Alan Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice and Procedure § 3847 (2007 ed.) Private factors include “the statutory considerations of convenience of the parties and witnesses, but also often include the plaintiffs forum preference, where the claim arose, and the relative ease of access to sources of proof.” Id. Public factors “encompass the statutory consideration of the interest of justice, focus on judicial economy and often include the district court’s familiarity with the governing law, the local interest in deciding local controversies at home, and the relative congestion of the courts.” Id.

Where the contract between the parties contains a forum selection clause, the clause “will be a significant factor that figures centrally in the District Court’s calculus.” Royal Bed & Spring Co. v. Famossul Industria e Comercio de Moveis Ltda., 906 F.2d 45, 51 (1st Cir.1990) (quoting Stewart, 487 U.S. at 29, 108 S.Ct. 2239). The First Circuit has also instructed that in evaluating a motion to transfer, district courts should consider not only the convenience of the parties and witnesses but also “the availability of documents; the possibility of consolidation; and the order in which the district court obtained jurisdiction.” Coady v. Ashcraft & Gerel, 223 F.3d 1, 11 (1st Cir.2000). Finally, “[n]ot only does the burden of proof rest with the party seeking to transfer; there is a strong presumption in favor of the plaintiffs choice of forum.” Astro-Med, 591 F.3d at 13.

B. The Transfer of Venue Factors

1. Dinan’s Choice of Forum

Mr. Dinan’s “choice to file in [his] home state of Maine was both natural and permissible.” Foley v. United States, No. 09-cv-239-P-S, 2009 WL 3400997 *2, 2009 U.S. Dist. LEXIS 98036 *6 (D.Me. Oct. 19, 2009). He has resided in the state of Maine throughout his employment with Alpha and he continues to reside in Maine. Under First Circuit law, Mr. Dinan’s choice of forum is presumed to be correct. Astro-Med, 591 F.3d at 13.

2. Convenience of the Parties

Mr. Dinan resides in Maine and would be inconvenienced if the case were transferred to California; Alpha does business in California and would be inconvenienced if the case remained in Maine. This factor is a draw.

[75]*753.Convenience of the Witnesses

In its motion, Alpha concedes that “[t]here is no manifest inconvenience for non-party witnesses.” Alpha’s Mot. at 4. This factor, therefore, does not favor transfer.

4.Availability of Documents

Alpha also concedes that there are no “documents in California that could not be available in Maine.” Id. This factor does not favor transfer.

5.Contract Provisions

Alpha presses the point and Mr. Dinan concedes that under the employment agreement California, not Maine law, applies. Id. at 1; Dinan Resp. at 1-2. Although a California-based court would undoubtedly be more familiar with California state law than a Maine-based court, Alpha has not demonstrated that California law is particularly difficult or nuanced in this area. Hence, the Court “is unconvinced that it makes any difference which state’s substantive law applies.” Foley, 2009 WL 3400997 at *4, 2009 U.S. LEXIS 98036 at *10-11.

Alpha further argues, however, that when he signed the Proprietary Agreement, Mr. Dinan expressly agreed to submit to California jurisdiction.

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Bluebook (online)
803 F. Supp. 2d 71, 2011 U.S. Dist. LEXIS 4723, 2011 WL 180086, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dinan-v-alpha-networks-inc-med-2011.