Seariver Maritime Financial Holdings, Inc. v. Pena

952 F. Supp. 455, 1996 U.S. Dist. LEXIS 20825, 1996 WL 774139
CourtDistrict Court, S.D. Texas
DecidedSeptember 6, 1996
DocketCivil Action H-96-0722
StatusPublished
Cited by29 cases

This text of 952 F. Supp. 455 (Seariver Maritime Financial Holdings, Inc. v. Pena) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seariver Maritime Financial Holdings, Inc. v. Pena, 952 F. Supp. 455, 1996 U.S. Dist. LEXIS 20825, 1996 WL 774139 (S.D. Tex. 1996).

Opinion

MEMORANDUM AND ORDER

ATLAS, District Judge.

Plaintiffs have brought suit seeking a declaratory judgment that Section 5007 of the Oil Pollution Act of 1990 (“the OPA”), 33 U.S.C. § 2737, is unconstitutional and contrary to United States treaties and international law, and ask the Court to enjoin permanently the enforcement of Section 5007 against Plaintiffs. First Amended Complaint for Declaratory and Injunctive Relief [Doc. #8] (“First Amended Complaint”). Plaintiffs invoke venue in this judicial district pursuant to 28 U.S.C. § 1391(e). The Government has filed a Rule 12(b)(3) Motion to Dismiss for Improper Venue or, in the Alternative, to Transfer Pursuant to 28 U.S.C. § 1406(a) [Doc. # 9] (“Motion”), seeking dismissal or transfer for improper venue. The Court has considered the Motion, the numerous responses, replies, and surreplies, all other matters of record in this case, and the relevant authorities. For the reasons stated herein, the Government’s Motion is GRANT *457 ED, and this action is DISMISSED WITHOUT PREJUDICE.

FACTUAL BACKGROUND

In 1990, Congress passed the OPA, of which Section 5007 provides: “Notwithstanding any other law, tank vessels that have spilled more than 1,000,000 gallons of oil into' the marine environment after March 22, 1989, are prohibited from operating on the navigable waters of Prince William Sound, Alaska.” 33 U.S.C. § 2737.

Plaintiffs own the S/R Mediterranean, formerly named the Exxon Valdez. Plaintiffs state that the Mediterranean was the only U.S. flag vessel to which Section 5007 applied at the time of passage in 1990, and that the statute “effectively bars the vessel from participating in any trade from Alaska to other U.S. ports, which was the original purpose in constructing the vessel.” Plaintiffs’ Response to Defendants’ Rule 12(b)(3) Motion to Dismiss for Improper Venue or, in the Alternative, to Transfer Pursuant to 28 U.S.C. § 1406(a) [Doc. # 18] (“Plaintiffs’ Response”), at 2.

Section 5007 has not yet been enforced against Plaintiffs. The First Amended Complaint does not allege that the vessel has yet done anything to violate Section 5007’s prohibition against navigation in Prince William Sound, nor that any enforcement action has been taken or threatened against the vessel. Rather, the only allegation is that SeaRiver “wishes” to have the vessel sail through Prince William Sound so as to participate in Alaska North Slope trade, which was the purpose for the vessel’s construction. First Amended Complaint, ¶¶ 23,25.

Plaintiffs have presented evidence of the connection of this cause of action to Houston, including the following: the S/R Mediterranean is owned and operated by two Houston-based companies; all decisions regarding the ownership and operation of the vessel are made in Houston; the decision to construct the vessel was made in Houston; and the restrictions of Section 5007 have caused “significant losses” for the Plaintiff companies, based in Houston, who own and operate the vessel. Plaintiffs’ Response, at 2, 4; Affidavit of W.P. Rupp (Exhibit 1 to Plaintiffs’ Response), ¶¶2, 4r-5 and 7. . Plaintiffs also argue that there is no more “convenient” district to try this case, and that it is not burdensome on the Government to litigate in Houston. Plaintiffs’ Response, at 4.

The Government claims that “[t]he only district involved in these events is the District of Alaska, where the Exxon Valdez implicated Section 5007 by spilling approximately 11,000,000 gallons of oil, and ■ also where that ship would have to operate before Section 5007 would be violated and could be enforced.” Memorandum of Law in Support of Defendants’ Rule 12(b)(3) Motion' to Dismiss for Improper Venue or, in the Alternative, to Transfer Pursuant to 28' U.S.C. § 1406(a) [Doc. # 10] (“Government’s Memorandum”), at l. 1 The Government points out that the only past event identified by Plain-' tiffs is the Valdez spill, which occurred in Alaska. Id. at 20. The Government also argues that, to the extent future events would be relevant, they would necessarily have to occur in Alaska since Section 5007 bars navigation only in Prince William Sound. Id. at 23.

DISCUSSION

The applicable venue statute, 28 U.S.C. § 1391(e), provides that a civil' action in which the defendant is the federal gov,eminent may be brought (1) where the defendant resides, (2) where a “substantial part of the events or omissions giving rise to the claim occurred, or a- substantial part of the property that is the subject of the action is situated,” or (3) where the plaintiff resides if no real property is involved in the action.

Section 1406(a), 28 U.S.C., provides that “[t]he 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 *458 interest of justice, transfer such case to any district or division in which it could have been brought.”

A. Is Venue Proper in the Southern District of Texas?

Plaintiffs argue that venue is appropriate under two provisions of Section 1391(e): because Plaintiffs reside in Houston, and because a “substantial part of the events or omissions giving rise to the claim occurred” in Houston.

1. Burden of Proof. — Once Defendants have raised a proper objection to venue in this judicial district, the Plaintiffs bear the burden of proof to establish that the venue they chose is proper. Smith v. Fortenberry, 903 F.Supp. 1018, 1019-20 (E.D.La.1995); French Transit, Ltd. v. Modern Coupon Systems, Inc., 858 F.Supp. 22, 25 (S.D.N.Y.1994). 2 As another district court has noted, the burden should be on the plaintiff to institute an action in the proper place, because “[t]o hold otherwise would circumvent the purpose of the venue statutes — it would give plaintiffs an improper incentive to attempt to initiate actions in a forum favorable to them but improper as to venue.” Delta Air Lines, Inc. v. Western Conference of Teamsters Pension Trust Fund, 722 F.Supp. 725, 727 (N.D.Ga.1989). 3

Therefore, Plaintiffs bear the burden to establish that the Southern District of Texas is an appropriate venue for this action. 4

2. Residence of Plaintiff. — Several circuit courts, including the Fifth Circuit, have held that a plaintiff corporation resides in the place of its incorporation. Tenneco Oil Co. v. EPA, 592 F.2d 897, 899 (5th Cir.

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Bluebook (online)
952 F. Supp. 455, 1996 U.S. Dist. LEXIS 20825, 1996 WL 774139, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seariver-maritime-financial-holdings-inc-v-pena-txsd-1996.