Empire Gas Corp. v. True Value Gas of Florida, Inc.

702 F. Supp. 783, 1989 U.S. Dist. LEXIS 150, 1989 WL 1408
CourtDistrict Court, W.D. Missouri
DecidedJanuary 11, 1989
Docket88-1129-CV-W-JWO
StatusPublished
Cited by5 cases

This text of 702 F. Supp. 783 (Empire Gas Corp. v. True Value Gas of Florida, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Empire Gas Corp. v. True Value Gas of Florida, Inc., 702 F. Supp. 783, 1989 U.S. Dist. LEXIS 150, 1989 WL 1408 (W.D. Mo. 1989).

Opinion

MEMORANDUM AND ORDERS

JOHN W. OLIVER, Senior District Judge.

I

Plaintiff has filed a formal request that this Court transfer this case on its own motion to the Middle District of Florida, Tampa Division, pursuant to 28 U.S.C. § 1404(a). See paragraph 2 of plaintiffs portion of the Joint Report filed in response to this Court’s December 9, 1988 order. 1 Defendants, on the other hand, contend that “it is premature to consider transfer of this case as to any of the defendants herein until this Court has ruled on the Motions to Dismiss now pending.” 2 Defts’ portion of Joint Report at II2. Defendants state that they “object to a transfer of this case to Florida since this Court is without jurisdiction over them and, as to defendants Stenger and Fallon, residents of Maryland, claims against them could not have been brought in Florida.” Defts’ portion of Joint Report at 1f 5.

We find and conclude that plaintiff’s request for a Section 1404(a) transfer should be granted and that defendants’ objections to such a transfer are not tenable.

II

We are satisfied that this Court may properly consider plaintiff’s request that this case be transferred on its own motion and that there is no need to require plaintiff to file a formal Section 1404(a) motion under the circumstances. For it is well established that a “transfer may be made upon motion by either party or by the court sua sponte.” Mobil Corp. v. S.E.C., 550 F.Supp. 67, 69 (S.D.N.Y.1982), citing I-T-E Circuit Breaker Co. v. Becker, 343 F.2d 361 (8th Cir.1965). 3

Defendants having been given adequate notice at the conference and having been afforded a sufficient opportunity to be heard, the transfer will accordingly be ordered pursuant to plaintiff’s request and on this Court’s own motion.

III

Defendants’ contention that this Court may not properly order a Section 1404(a) transfer for the reason it has not, and may not properly acquire personal jurisdiction over the defendants is without merit. In McKee v. Anderson, 272 F.Supp. 684, 686 (W.D.Mo.1967), then Chief Judge Becker of this Court, concluded that under the factual circumstances of that case “this Court does not have personal jurisdiction over the defendants herein.”

Defendants’ Section 1404(a) motion to transfer, however, was granted in that case *785 for the reason that “the lack of personal jurisdiction over the defendants [did not prevent] the Court from exercising the power to order such a transfer” pursuant to Section 1404(a). 4 Id. We therefore find and conclude that the fact that this Court may not have acquired personal jurisdiction over the defendants does not deprive it of the power to order a Section 1404(a) transfer to the Middle District of Florida.

IV

In an apparent reference to the general venue statute, defendants contend that plaintiff’s claims against the defendants “could not have been brought in Florida.” See the last sentence of defendants’ portion of the Joint Report. We disagree.

Plaintiff’s complaint invoked the diversity jurisdiction of this Court. Venue was proper in this district under 28 U.S.C. § 1391(a) for the reason that plaintiff could be said to reside in this district. Section 1391(a), which is the general venue statute, also provides, however, that a “civil action wherein jurisdiction is founded only on diversity of citizenship may ... be brought only in the judicial district ... in which the claim arose. ” (Emphasis added).

The papers filed in connection with the motion to dismiss filed by defendants Sten-ger and True Value Gas of Florida, Inc., establish that it must be said that plaintiff’s “claim arose” in the Middle District of Florida within the meaning of Section 1391(a). 5

Defendants Stenger and True Value’s suggestions in support of their motion to dismiss accurately stated that:

Plaintiff’s complaint is in four counts. Count I purports to state a claim against defendant Carl Stenger for tortious inter-ferenee with contract. Counts II and III purport to state claims for breach of contract against defendants Paul Fallon and Garlan Williams, respectively. Count IV seeks injunctive relief against defendants True Value Gas of Florida, Inc., Paul Fallon and Garlan Williams. Plaintiff’s claims purport to arise out of two Employment Contracts wherein plaintiff claims it obtained defendants Paul Fallon and Garlan Williams agreement not to compete in the thirty-five states where Empire Gas Corporation does business, not to solicit Empire Gas Corporation’s customers and not to solicit Empire Gas Corporation’s employees.

Defts Stenger and True Value’s Sugg, in Support at 1-2.

Plaintiff’s suggestions in opposition to that motion to dismiss stated that:

Williams, a resident of Florida, and Fal-lon, a resident of Maryland, had negotiated and signed employment contracts with Empire in Missouri. These employment contracts contained covenants not to compete ... In or around June of 1988, Williams and Fallon began talking about forming a new company to sell liquefied petroleum gas in Florida. Williams began soliciting employees of Empire subsidiaries. Williams left the employ of Empire on October 10, 1988. Fallon left the employ of Empire on October 1, 1988. Fallon and Williams then teamed up with Stenger to form True Value, which was incorporated in the same month. True Value then began soliciting customers of Empire subsidiaries. Williams and Fal-lon, as principals of True Value, violated the covenants not to compete included in their contracts with Empire by setting up a rival liquefied petroleum gas company in Hudson, Florida and soliciting employ *786 ees and customers of Empire. 6

Pit’s Sugg, in Oppos. at 2.

It is thus clear that plaintiff’s claim that defendants Williams and Fallon violated the covenants not to compete in their contracts and its claim that defendants True Value and Stenger tortiously interfered with plaintiff’s contracts with Williams and Fallon are based on factual circumstances that allegedly occurred in the Middle District of Florida.

The circumstances under which Section 1391 was amended in 1966 to provide that the district “in which the claim arose” as a permissible venue in addition to venue based on residence of the parties is stated in detail in 15 Wright, Miller & Cooper, Federal Practice and Procedure, § 3806 at 41-72, and in 1 Moore’s Federal Practice, ¶ 0.142 [5.-2] at 1423-36.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Naegler v. Nissan Motor Co., Ltd.
835 F. Supp. 1152 (W.D. Missouri, 1993)
Midwest Motor Supply Co., Inc. v. Kimball
761 F. Supp. 1316 (S.D. Ohio, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
702 F. Supp. 783, 1989 U.S. Dist. LEXIS 150, 1989 WL 1408, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empire-gas-corp-v-true-value-gas-of-florida-inc-mowd-1989.