In Re: Space Exploration Technologies

96 F.4th 733
Court of Appeals for the Fifth Circuit·Decided March 5, 2024·No. 24-40103·Published·Cited by 1 cases

Opinion

United States Court of Appeals for the Fifth Circuit United States Court of Appeals Fifth Circuit

____________ FILED March 5, 2024

No. 24-40103 Lyle W. Cayce ____________ Clerk

In re Space Exploration Technologies, Corporation,

Petitioner.

Appeal from the United States District Court for the Southern District of Texas USDC No. 1:24-CV-1

PUBLISHED ORDER

Before Elrod, Haynes, and Douglas, Circuit Judges. Per Curiam: * The petition for a writ of mandamus is DENIED.

*

Judge Elrod dissents from the denial of a writ of mandamus.

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Jennifer Walker Elrod, Circuit Judge, dissenting:

Space Exploration Technologies seeks a writ of mandamus in order to keep the lawsuit it filed against NLRB in the Southern District of Texas. Today , in a one-line order, the panel denies that relief. In doing so, the panel permits an erroneous view of the requirements for filing claims in our circuit, risks confusion amongst the district courts of our circuit, and deprives plaintiffs of the opportunity to seek justice in a lawful venue. Because the district court committed legal error by asking where the “most significant part of the events” took place and because the other mandamus factors are satisfied, I would conclude that mandamus relief is appropriate and direct the district court to: (1) vacate its transfer order dated February 15, 2024; and (2) rule expeditiously on the pending motion for a preliminary injunction.

SpaceX originally filed suit in the Southern District of Texas, seeking preliminary injunctive relief from administrative hearings before the NLRB. SpaceX contends that the structure of the hearings violates Article II, the Fifth Amendment, and the Seventh Amendment of the Constitution of the United States. The district court granted NLRB’s motion to transfer the case to the Central District of California, reasoning that the Central District is where most of the events giving rise to the case occurred. SpaceX petitioned for a writ of mandamus, and we administratively stayed the transfer order so that we could review SpaceX’s petition. Because the stay was entered before transfer of the case was complete, 1 we confirmed that we retained jurisdiction over the case. The Central District of California stated that it would return the case upon request from the Southern District of

1 Transfer was not complete because although the case had been sent electronically, it had not been docketed in the transferee court. In re Space Exploration Technologies, Corp., No. 24-40103, Order (Feb. 26, 2024) (citing Lou v. Belzberg, 834 F.2d 730, 733 (9th Cir. 1987)).

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Texas. On March 1, 2024, the Southern District of Texas requested that the case be returned, and the Central District of California ordered that the case be returned on March 4, 2024. The Southern District of Texas docketed the case on March 5, 2024.

Mandamus is an “extraordinary remedy reserved for really extraordinary cases.” Defense Distributed v. Bruck, 30 F.4th 414, 427 (5th Cir. 2022). Our circuit has held that mandamus is the “appropriate means to test a district court’s ruling on a venue transfer motion.” In re Volkswagen of America, Inc., 545 F.3d 304, 308 (5th Cir. 2008). Indeed, NLRB does not contest this point. The Supreme Court has laid out three requirements that must be met before a reviewing court can grant mandamus relief: (1) the party seeking a writ of mandamus must have no other adequate means to attain the relief he desires”; (2) the petitioner must demonstrate that his “right to issuance of the writ is clear and indisputable”; and (3) even if the first two requirements are met, “the issuing court, in the exercise of its discretion, must be satisfied that the writ is appropriate under the circumstances.” In re Volkswagen, 545 F.3d at 311 (quoting Cheney v. U.S. Dist. Court for Dist. of Columbia, 452 U.S. 367, 380–81 (2004)).

I

In the motion to transfer context, “this circuit has established that the first ‘mandamus requirement [of no other adequate means of relief] is satisfied .’” In re TikTok, Inc., 85 F.4th 352, 358 (5th Cir. 2023) (quoting In re Radmax, Ltd., 720 F.3d 285, 287 n.2 (5th Cir. 2013) (per curiam)). 2 NLRB admits as much. The fact that this case involves an out-of-circuit transfer

2 These holdings arose in the context of transfers under 28 U.S.C. § 1404(a).

Because 1406(a) is an “analogous” provision, “which shares the same statutory context” as § 1404(a), the same logic applies to 28 U.S.C. § 1406(a). Van Dusen v. Barrack, 376 U.S. 612, 621 n.11 (1964).

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only strengthens the case for mandamus. See 15 Charles Alan Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice and Procedure § 3935.4 (4th ed.) (noting that “completion of proceedings in the receiving court is likely to exert a strong pressure to affirm rather than set aside a completed trial solely because it would better have been held in the transferring court”).

II

In this case, the second prong is the one “most strenuously debate [d].” Bruck, 30 F.4th at 427. It requires SpaceX to demonstrate a “clear and indisputable right to the writ or a clear abuse of discretion by the district court.” Id. (citing Cheney, 452 U.S. at 381). “A district court by definition abuses its discretion when it makes an error of law.” Id. (citing Koon v. United States, 518 U.S. 81, 100 (1996)); see also Cooter & Gell v. Hartmarx Corp., 496 U.S. 384, 405 (1990) (“[A] district court would necessarily abuse its discretion if it based its ruling on an erroneous view of the law.”).

Here, the district court’s abuse of discretion concerns its determination that venue in the Southern District of Texas was improper. A civil action against an agency of the United States may be brought in a judicial district where “(A) a defendant in the action resides, (B) a substantial part of the events or omissions giving rise to the claim occurred, . . . or (C) the plaintiff resides if no real property is involved in the action.” 28 U.S.C. § 1391(e)(1). The parties did not and do not dispute that because no party resides in the Southern District of Texas, § 1391(e)(1)(B) is the only potential path to venue in the Southern District of Texas.

Section 1391(e)(1)(B) does not ask the district court to determine whether the current venue is the best venue. Safety Nat. Cas. Corp. v. U.S. Dep’t of Treasury, No. CIV.A H-07-643, 2007 WL 7238943, at *5 (S.D. Tex. Aug. 20, 2007). The plain text of the statute permits a plaintiff to bring an action against the United States in any district where “a substantial part of

No. 24-40103

the events or omissions giving rise to the claim occurred.” 28 U.S.C. § 1391(e)(1)(B). The statute requires that the events (or omissions) in the Southern District were “a substantial part,” not the most substantial part, of the events giving rise to the claim. See 15 Charles Alan Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice and Procedure § 3806 (4th ed.) (“It has always been clear that there can be more than one district in which a substantial part of the events giving rise to the claim occurred.”).

The language in 28 U.S.C. § 1391(e)(1) is identical to that found in the general venue statute. 28 U.S.C. § 1391(b)(2) (permitting venue in “a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred”). 3 This language is generally referred to as “transactional venue.”

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In Re: Space Exploration Technologies, 96 F.4th 733 (5th Cir. 2024).

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