In Re Volkswagen of America, Inc.

506 F.3d 376
Court of Appeals for the Fifth Circuit·Decided October 25, 2007·No. 07-40058·Published·Cited by 10 cases

Opinion

E. GRADY JOLLY, Circuit Judge:

Petitioners Volkswagen AG and Volkswagen of America, Inc. (collectively, ‘Volkswagen”), defendants in the Marshall Division of the Eastern District of Texas, seek a writ of mandamus directing the district court to transfer this case to the Dallas Division of the Northern District of Texas, where the automobile accident and the injuries to the parties occurred. The plaintiffs exercised their privilege to choose the Marshall Division as the forum for their case, but Marshall has no connection to the parties or the facts of the case. For the reasons presented below, we grant Volkswagen’s petition for a writ of mandamus and remand with instructions to transfer the case to the Northern District of Texas, Dallas Division.

I.

On the morning of May 21, 2005, a Volkswagen Golf automobile was struck from behind and propelled rear-first into a flat-bed trailer parked on the shoulder of a freeway in Dallas, Texas. Ruth Singleton was driving the Volkswagen Golf. Richard Singleton was a passenger. Mariana Singleton, Richard Singleton and Ruth Singleton’s granddaughter, was also a passenger. Richard Singleton was seriously injured in the accident. Mariana Singleton died as result of her injuries.

Richard Singleton, Ruth Singleton, and Amy Singleton (Mariana’s mother) filed suit against Volkswagen in the Marshall Division of the United States District Court for the Eastern District of Texas (“Marshall Division”). The complaint alleged that design defects in the Volkswagen Golf caused Richard’s injuries and Mariana’s death. Volkswagen filed a third-party complaint against the driver of the vehicle that struck the Singletons, alleging that the Singletons had the ability to sue him but did not, and that his negligence was the only proximate cause of the damages.

Pursuant to 28 U.S.C. § 1404(a), Volkswagen moved to transfer venue to the Dallas Division of the Northern District of Texas (“Dallas Division”). Volkswagen asserted that a transfer was warranted as (1) *379 the Volkswagen Golf was purchased in Dallas County, Texas; (2) the accident occurred on a freeway in Dallas, Texas; (3) Dallas residents witnessed the accident; (4) Dallas police and paramedics responded and took action; (5) a Dallas doctor performed the autopsy; (6) the third-party defendant lives in Dallas County, Texas; (7) none of the plaintiffs live in the Marshall Division; (8) no known party or significant non-party witness lives in the Marshall Division; and (9) none of the facts giving rise to this suit occurred in the Marshall Division. The district court denied the motion, holding that Volkswagen had not satisfied its burden of showing that the balance of convenience and justice weighs substantially in favor of transfer.

Volkswagen then filed a motion for reconsideration, arguing that the district court gave inordinate weight to the plaintiffs’ choice of forum and that the district court failed properly to weigh the venue transfer factors. The district court also denied the motion for reconsideration, for the same reasons presented in its denial of Volkswagen’s motion for transfer.

Volkswagen then petitioned this court for a writ of mandamus. In a per curiam opinion, a divided panel of this court denied the petition and declined to issue a writ. In re Volkswagen of Am. Inc., 223 Fed.Appx. 305 (5th Cir.2007). The panel majority held that the district court did not abuse its discretion in denying Volkswagen’s motion to transfer. Judge Garza wrote a dissenting opinion, noting that “[t]he only connection between this case and the Eastern District of Texas is plaintiffs’ choice to file there; all other factors relevant to transfer of venue weigh overwhelmingly in favor of the Northern District of Texas.” Id. at 307 (Garza, J., dissenting).

Volkswagen filed a petition for rehearing en banc. The original panel interpreted the petition for rehearing en banc as a petition for panel rehearing, granted it, withdrew its decision, and directed the Clerk’s Office to schedule the petition for oral argument. This panel then heard oral argument on the issues raised for review.

II.

“Mandamus is an extraordinary writ. It ... and is not a substitute for an appeal. We will issue the writ only in the absence of other adequate remedies when the trial court has exceeded its jurisdiction or has declined to exercise it, or when the trial court has so clearly and indisputably abused its discretion as to compel prompt intervention by the appellate court.” In re Chesson, 897 F.2d 156, 159 (5th Cir.1990). However, although “few litigants have surmounted the formidable obstacles and secured the writ,” this court has “recognized the availability of mandamus as a limited means to test the district court’s discretion in issuing transfer orders.” In re Horseshoe Entm’t, 337 F.3d 429, 432 (5th Cir.2003) (internal quotations omitted). We have enumerated standards for determining the propriety of a district court’s ruling on a motion to transfer under § 1404(a), and it is these standards that determine the issues raised on appeal in this case.

The Pfizer standards for determining the propriety of a district court’s ruling on a motion to transfer ask: (a) Did the district court correctly construe and apply the relevant statutes; (b) Did the district court consider the relevant factors incident to ruling upon a motion to transfer; and (c) Did the district court abuse its discretion in deciding the motion to transfer. In re Volkswagen AG, 371 F.3d 201, 203 (5th Cir.2004) [hereinafter In re Volkswagen 7]; Ex parte Chas. Pfizer & Co., 225 F.2d 720, 723 (5th Cir.1955).

*380 The Pfizer standards require a careful review of “the circumstances presented to and the decision making process used by” the district court. In re Horseshoe, 337 F.3d at 432. The standards do not allow us to replace the district court’s exercise of discretion with our own. Indeed, we will issue a writ only when there is an abuse of discretion. In re Volkswagen I, 371 F.3d at 203. But, again, the Pfizer standards do require a careful review of the district court’s exercise of its discretion.

III.

The preliminary question under the change of venue statute, 28 U.S.C. § 1404, is whether the suit could have been filed originally in the destination venue. Id. Volkswagen seeks to transfer this case to the Dallas Division of the Northern District of Texas. There is no question but that this suit originally could have been filed in the Dallas Division. See 28 U.S.C. § 1391.

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In Re Volkswagen of America, Inc., 506 F.3d 376 (5th Cir. 2007).

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