Lyngholm v. Fedex Ground Package Systems, Inc.

827 F. Supp. 2d 912, 2011 U.S. Dist. LEXIS 140549, 2011 WL 6072220
CourtDistrict Court, S.D. Iowa
DecidedMarch 1, 2011
Docket3:10-cv-00068-JEG
StatusPublished
Cited by6 cases

This text of 827 F. Supp. 2d 912 (Lyngholm v. Fedex Ground Package Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyngholm v. Fedex Ground Package Systems, Inc., 827 F. Supp. 2d 912, 2011 U.S. Dist. LEXIS 140549, 2011 WL 6072220 (S.D. Iowa 2011).

Opinion

ORDER

JAMES E. GRITZNER, District Judge.

Before the Court is a motion by LAD Trucking (LAD) to dismiss for improper venue pursuant to Federal Rule of Civil Procedure 12(b)(3) or, in the alternative, to transfer venue pursuant to 28 U.S.C. § 1404(a); and a joint motion by Defendants FedEx Ground Package Systems, Inc. (FedEx) and Brent R. Mendenhall (Mendenhall) to transfer venue pursuant to 28 U.S.C. § 1404(a). Plaintiffs Linda Lyngholm (Ms. Lyngholm) and Daniel Lyngholm (D. Lyngholm) (collectively, Plaintiffs, or the Lyngholms) resist. On December 14, 2010, the Court conducted a hearing on the motions. Attorneys Robert Fanter and Amos Hill represented Defendants and Attorney Patrick Driscoll represented Plaintiffs. The motions are fully submitted and ready for disposition.

I. BACKGROUND

On March 25, 2008, at approximately 2:40 p.m., Ms. Lyngholm was driving her passenger sedan eastbound on Interstate 80 near the town of Sutherland in Lincoln County, Nebraska. Compl. 2, ¶¶ 6-11. Mendenhall was driving an International tractor eastbound on Interstate 80 in Lincoln County just in front of Ms. Lyngholm. As Ms. Lyngholm moved into the left lane to pass Mendenhall’s vehicle, pieces of mechanical equipment broke loose from Mendenhall’s vehicle and fell on the interstate immediately in front of Ms. Lyngholm. According to Ms. Lyngholm, despite her efforts to avoid the debris falling off Mendenhall’s vehicle, a drive shaft from Mendenhall’s vehicle came through the front windshield of Ms. Lyngholm’s sedan and struck Ms. Lyngholm in the upper left arm.

On March 25, 2010, the Lyngholms filed a petition in Iowa District Court for Scott County alleging Defendants FedEx and Mendenhall were negligent in the operation of a motor vehicle, which resulted in a traffic accident and injuries to Ms. Lyngholm. Notice of Removal 1, ¶ 1. Defendants FedEx and Mendenhall timely removed the case based upon diversity of citizenship. After removal, the Lyngholms successfully moved to add Defendant LAD Trucking to this action. ECF Nos. 8, 11. At all relevant times, the Lyngholms were residents of Scott County, Iowa; FedEx was a Delaware corporation with its principle place of business in the state of Pennsylvania; Mendenhall was a citizen of Utah; and LAD Trucking was a Utah corporation with its principal place of business in Salt Lake City, Utah. LAD Trucking Mot. 3.

II. DISCUSSION

A. LAD Trucking’s Motion to Dismiss for Improper Venue 1

Defendant LAD Trucking moves to dismiss under Rule 12(b)(3) asserting *917 venue in the Southern District of Iowa, Davenport Division, is improper because (1) LAD Trucking is a Utah resident with insufficient minimum contacts with the state of Iowa; (2) a substantial part of the events giving rise to the claims in this case occurred in Lincoln County, Nebraska; (3) Ms. Lyngholm received her immediate medical attention in Nebraska; and (4) Ms. Lyngholm’s subsequent medical treatment and recovery in Scott County, Iowa, is not part of the conduct that gives rise to this lawsuit and does not make venue proper under 28 U.S.C. § 1391.

The general venue statute, in pertinent part, provides,

(a) A civil action wherein jurisdiction is founded only on diversity of citizenship may, except as otherwise provided by law, be brought only in (1) a judicial district where any defendant resides, if all defendants reside in the same State, (2) a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of property that is the subject of the action is situated, or (3) a judicial district in which any defendant is subject to personal jurisdiction at the time the action is commenced, if there is no district in which the action may otherwise be brought.

28 U.S.C. § 1391.

LAD Trucking is a Utah corporation with its principal place of business in Salt Lake City, Utah, and therefore resides outside this District. Plaintiffs do not contend, nor is there evidence to support a finding that LAD Trucking has sufficient minimum contacts with the state of Iowa. Finally, no substantial event giving rise to Plaintiffs negligence claims against LAD Trucking occurred in this District. The accident forming the basis of this litigation occurred in Lincoln County, Nebraska, which is also where Ms. Lyngholm received emergency medical treatment and where vehicle assistance was rendered. The only event that occurred in this District was Ms. Lyngholm’s follow-up medical treatment, which does not constitute a substantial event giving rise to Plaintiffs’ negligence claims against LAD Tracking. Because the provisions of section 1391 are not satisfied as to LAD Trucking, venue in this District is improper as to Defendant LAD Trucking. The Court must therefore determine the appropriate remedy under 28 U.S.C. § 1406(a). See Poku v. FDIC, 752 F.Supp.2d 23, 26-27 (D.D.C.2010) (reasoning that under the remedies for improper venue provided in section 1406(a), the “decision whether dismissal or transfer is in the interests of justice is committed to the sound discretion of the district court”); Hicklin Eng’g, L.C. v. Bartell, 116 F.Supp.2d 1107, 1113 (S.D.Iowa 2000) (“Having concluded that venue is improper in this district, the Court must next consider whether to dismiss the ease or transfer it pursuant to 28 U.S.C. § 1406(a).” (citing *918 15 Charles A. Wright, Arthur R. Miller & Edward H. Cooper, Federal Practice and Procedure § 3827 (1986))). 2

Title 28 U.S.C. § 1406(a), which addresses waiver and cure for improper venue, states, “The district court of a district in which is filed a case laying venue in the wrong division or district shall dismiss, or if it be in the interest of justice, transfer such case to any district or division in which it could have been brought.” Regarding the remedies available under section 1406(a), the Supreme Court has said,

The language of § 1406(a) is amply broad enough to authorize the transfer of cases, however wrong the plaintiff may have been in filing his case as to venue, whether the court in which it was filed had personal jurisdiction over the defendants or not.... When a lawsuit is filed, that filing shows a desire on the part of the plaintiff to begin his case and thereby toll whatever statutes of limitation would otherwise apply.

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827 F. Supp. 2d 912, 2011 U.S. Dist. LEXIS 140549, 2011 WL 6072220, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyngholm-v-fedex-ground-package-systems-inc-iasd-2011.