Ponce de Leon Hospitality Corp. v. Avalon Logistics, Inc.

117 F. Supp. 3d 124, 2015 WL 4620268
CourtDistrict Court, D. Puerto Rico
DecidedJuly 8, 2015
DocketCivil No. 13-1412 (DRD)
StatusPublished
Cited by2 cases

This text of 117 F. Supp. 3d 124 (Ponce de Leon Hospitality Corp. v. Avalon Logistics, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ponce de Leon Hospitality Corp. v. Avalon Logistics, Inc., 117 F. Supp. 3d 124, 2015 WL 4620268 (prd 2015).

Opinion

OPINION AND ORDER

DANIEL R. DOMINGUEZ, District Judge.

Ponce de Leon Hospitality Corp. (“H.I. Ponce”) and H.I. Mayagüez, Inc. (“HI. Mayagüez”) (collectively “Plaintiffs”), brought the instant action against Avalon Logistics Inc., et ah1 pursuant to the Car-mack Amendment to the Interstate Commerce Act and its’ attendant regulation2, for the loss or theft of thirty-nine (39) video-gaming or slot machines and other machine parts that were never delivered' to their final destination in San Juan, Puerto Rico. Pending before the Court is Defendant Federal Insurance Company’s (“Federal”) Motion for Transfer of Venue pursuant to Federal Rule of Civil Procedure 12(b)(3). For the reasons set forth below, the motion is hereby DENIED.

I. FACTUAL AND PROCEDURAL BACKGROUND

In the present case, Plaintiffs, two corporations organized under the laws of the [127]*127Commonwealth of Puerto Rico, seek to recover damages from several Defendants caused by the alleged loss or theft of thirty-nine (39) video-gaming or slot machines.

According to the Complaint, on or around January 23, 2013, H.I-. Mayagüez purchased fifteen (15) video-gaming or slot machines and other machine parts from Ainsworth Game Technology, Ltd. (“Ains-worth”), a nonparty. On or around that same date, H.I. Ponce also purchased twelve (12) machines from Ainsworth. Moreover, on or around March 26, 2013, Plaintiff H.I. Mayagüez then purchased, twelve (12) video-gaming or slot machine parts from Bally Gaming Inc., also a non-party in this case. All three orders were received in good condition by Co-Defendant Avalon Logistics Inc. (“Avalon”), a carrier3 principally located and organized under the laws of the state of California. Nevertheless, the machines were scheduled to be moved via land by Avalon from their warehouse in California to Jacksonville, Florida, where they were then meant to be shipped to Puerto Rico. However, the machines were allegedly lost or stolen from Avalon’s warehouse in California and/or while in transit from Avalon’s warehouse to Jacksonville, Florida. Thus, the thirty-nine (39) slot machines never arrived to their final destination in San Juan, Puerto Rico. See Docket No. 103.

On October 23, 2014, Co-Defendant Federal, a member of the Chubb Group of Insurance Companies .and incorporated pursuant to the laws of the State of Indiana, filed the instant Motion for Transfer of Venue (Docket No. 124). Specifically, Federal requests the transfer of this action pursuant to the provisions of 28 U.S.C. § 1391(b)4 (as venue is allegedly improper in this district) and 28 U.S.C, § 1404(a)5 (as transfer is allegedly warranted for reasons of convenience). .Moreover, Federal Claims, that the instant action should be transferred to the Central District Court of California, on the grounds that: (1) none of the defendants are residents of Puerto Rico; (2) the alleged theft of goods in transit did not take place in Puerto Rico, but rather in California or in a district other than Puerto Rico; and (3) several documents, records and witnesses involved in the investigation of this case are located in California. See Docket No. 124. '

On November 24, 2014, Plaintiffs filed an Opposition to Motion for Transfer of Venue (Docket No. 139) claiming that the venue statute 'applicable to this case is the specialized provision codified in the Car-mack Amendment at 49 U.S.C. § 14706(d)(1)6 which trumps the afore[128]*128mentioned general venue provision codified at 28 U.S.C. § 1391(b). Plaintiffs also claim that Federal has not successfully carried forth its burden to seek a change of venue for reasons of convenience pursuant to 28 U.S.C. § 1404(a).

On November 24, 2014, Co-Defendant Crowley Logistics Inc. (“Crowley”), a corporation organized under the laws of the state of Delaware, filed an opposition to Co-Defendant Federal’s Motion for Transfer of Venue (Docket No. 140). Like Plaintiffs, Co-Defendant Crowley also claims that Federal incorrectly sustains that this case should be heard in the Central District of California and has failed to meet its burden of proof pursuant to 28 U.S.C. § 1404(a). For these reasons, Ci'owley states that venue is proper in the District of Puerto Rico. Accordingly, the Court shall first proceed to consider whether venue is proper in this district.

II. ANALYSIS

Venue pursuant to the Carmack Amendment to the Interstate Commerce Act

In addition to the general venue provision codified in 28 U.S.C. § 1391(b), Congress has passed hundreds of special venue provisions that govern venue in particular types of cases. Such special statutes provide options for venue in addition to those allowed by the general § 1391(b) provision. 14D Charles Alan Wright, Arthur R. Miller, Edward H. Cooper & Richard D. Freer, Federal Practice and Procedure § 3803, 48-51 (4th ed.2013). “A special venue statute, expressly covering venue of a particular kind of action, will control over the general venue statutes.” 1mage Software, Inc. v. Reynolds & Reynolds Co., 459 F.3d 1044, 1054 (10th Cir.2006); Pujols v. Ser-Jobs for Progress Nat., Inc., No. CIV. 981348(HL), 1999 WL 223507, at *3 (D.P.R. Mar. 29, 1999). See also Fourco Glass Co. v. Transmirra Products Corp., 353 U.S. 222, 228, 77 S.Ct. 787, 1 L.Ed.2d 786 (1957) (Holding that section 1400(b), prescribing venue for patent infringement cases, displaced the general venue provision. “However inclusive may be the general language of a statute, it will not be held to apply to a matter specifically dealt with in another part of the same enactment. Specific terms prevail over the general in the same or another statute which otherwise might be controlling.”).

The instant action is brought pursuant to the Carmack Amendment, which imposes liability on common carriers for damages and losses to goods caused by the carrier in interstate shipment. See 49 U.S.C. § 14706(a)(1). “The purpose of the Carmack Amendment was to relieve shippers of the burden of searching out a particular negligent carrier from among the often numerous carriers handling an interstate shipment of goods.” Reider v. Thompson, 339 U.S. 113, 119, 70 S.Ct. 499, 94 L.Ed. 698 (1950).

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117 F. Supp. 3d 124, 2015 WL 4620268, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ponce-de-leon-hospitality-corp-v-avalon-logistics-inc-prd-2015.