Smart Communications Collier, Inc. v. Lowndes County, Mississippi

CourtDistrict Court, N.D. Mississippi
DecidedMarch 31, 2022
Docket1:21-cv-00078
StatusUnknown

This text of Smart Communications Collier, Inc. v. Lowndes County, Mississippi (Smart Communications Collier, Inc. v. Lowndes County, Mississippi) is published on Counsel Stack Legal Research, covering District Court, N.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smart Communications Collier, Inc. v. Lowndes County, Mississippi, (N.D. Miss. 2022).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF MISSISSIPPI ABERDEEN DIVISION

SMART COMMUNICATIONS COLLIER, INC. PLAINTIFF

V. NO. 1:21-CV-78-DMB-DAS

LOWNDES COUNTY, MISSISSIPPI; LOWNDES COUNTY SHERIFF’S OFFICE; and LOWNDES COUNTY SHERIFF EDDIE HAWKINS, in his Official and Individual Capacities DEFENDANTS

ORDER

Before the Court is the defendants’ “Motion to Dismiss, to Transfer and/or Remand for Want of Jurisdiction, or in the Alternative for Forum Non-Conviens[sic].” For the reasons explained below, this case will be dismissed without prejudice. I Procedural History On May 3, 2021, Smart Communications Collier, Inc. filed a complaint in the United States District Court for the Northern District of Mississippi against Lowndes County, Mississippi, Lowndes County Sheriff’s Office, and Lowndes County Sheriff Eddie Hawkins, in his official and individual capacities. Doc. #1. Smart seeks a declaratory judgment determining whether the defendants may properly terminate an agreement under which Smart exclusively provides inmate communication services to the Lowndes County Adult Detention Center. Id. On May 25, 2021, the defendants filed a “Motion to Dismiss, to Transfer and/or Remand for Want of Jurisdiction, or in the Alternative for Forum Non-Conviens[sic]” on grounds that the agreement “attached to the Plaintiff’s Complaint, has a forum selection clause wherein the parties agreed to have this matter in the State Courts of Mississippi.” Doc. #7 at PageID 39. Smart responded in opposition to the motion. Doc. #11.1 The defendants did not reply. II Standard of Review It is important to initially address the criteria under which a forum selection clause should be evaluated when a case is filed in federal court but asserted to be subject to a forum selection clause mandating a state court venue. The defendants ask the Court to dismiss the complaint pursuant to Federal Rule of Civil Procedure 12, or to “transfer and/or remand” the case pursuant to 28 U.S.C. § 1404 or, alternatively, for forum non conveniens. Doc. #7 at 1. A. Rule 12 Though the defendants move for dismissal pursuant to Rule 12, they fail to specify the

subsection on which they rely. To the extent they seek dismissal for lack of subject matter jurisdiction, the Court presumes they invoke Rule 12(b)(1). Motions under Rule 12(b)(1) challenge a court’s subject matter jurisdiction. However, “a federal court may dismiss a case on the ground of forum non conveniens without first resolving a threshold issue of jurisdiction.” Wellogix, Inc. v. SAP Am., Inc., 648 F. App’x 398, 400 (5th Cir. 2016) (citing Sinochem Int’l Co., Ltd. v. Malay. Int’l Shipping Corp., 549 U.S. 442, 425 (2007)). Because the defendants’ arguments only relate to the forum selection clause and the United States Supreme Court has explained that “the appropriate way to enforce a forum-selection clause pointing to a state or foreign forum is through the doctrine of forum non conveniens,”2 the Court declines to further address subject matter jurisdiction.

1 Smart initially filed a response and supporting memorandum on June 8, 2021, but attached exhibits to the memorandum (instead of to the response) contrary to Local Rule 7(b)(2). Docs. #9, #10. It refiled its response and memorandum in compliance with the Local Rules on June 16, 2021. Docs. #11, #12. 2 Atl. Marine Constr. Co., Inc. v. U.S. Dist. Ct. for the W. Dist. of Tex., 571 U.S. 49, 60 (2013). B. 28 U.S.C. § 1404 The defendants also seek relief pursuant to 28 U.S.C. § 1404 but neither their motion nor their memorandum specifies the subsection on which they rely. Section 1404(a) provides that “[f]or the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought or to

any district or division to which all parties have consented.” The Court is puzzled as to why the defendants rely on § 1404. They argue that “the parties intended to have this matter heard in Mississippi State Courts” but as the defendants acknowledge, this Court “cannot force a state Court to take this matter” where there has been no prior state court filing. Doc. #8 at 1–2. Accordingly, the Court turns to the defendants’ alternative forum non conveniens argument. C. Forum Non Conveniens The doctrine of forum non conveniens “entail[s] the same balancing-of-interests standard” as a motion to transfer venue under 28 U.S.C. § 1404(a). Atl. Marine Constr. Co., Inc. v. U.S. Dist. Ct. for the W. Dist. of Tex., 571 U.S. 49, 61 (2013). “In the typical case not involving a

forum-selection clause, a district court considering a § 1404(a) motion (or a forum non conveniens motion) must evaluate both the convenience of the parties and various public-interest considerations.”3 Id. at 62. “The calculus changes, however, when the parties’ contract contains a valid forum-selection clause, which represents the parties’ agreement as to the most proper forum.” Id. at 63. When there is a mandatory, enforceable forum selection clause, “the plaintiff’s choice of forum merits no weight” and the plaintiff bears the “burden of establishing that § 1404(a) transfer

3 “The public-interest factors include the administrative difficulties flowing from court congestion; the local interest in having localized controversies decided at home; and the interest in having the trial of a diversity case in a forum that is at home with the law.” Weber v. PACT XPP Techs., AG, 811 F.3d 758, 767 (5th Cir. 2016) (citing Piper Aircraft Co. v. Reyno, 454 U.S. 235, 241 n.6 (1981)). or [forum non conveniens] dismissal is unwarranted.” Weber v. PACT XPP Techs., AG, 811 F.3d 758, 767 (5th Cir. 2016) (citing Atl. Marine, 571 U.S. at 63). This is because “dismissal … work[s] no injustice on the plaintiff” because the plaintiff “has violated a contractual obligation by filing suit in a forum other than the one specified in a valid forum-selection clause.” Atl. Marine, 571 U.S. at 66 n.8. Additionally, a court “should not consider arguments about the parties’ private

interests”4 but instead consider only the “public interest” factors. Id. at 64. Because “a valid forum-selection clause should be given controlling weight in all but the most exceptional cases,” public-interest factors will rarely defeat a transfer motion. Id. at 63–64 (alterations omitted). Therefore, the plaintiff’s burden to establish that “public-interest factors overwhelmingly disfavor a transfer” is very heavy. Id. at 67. Where the parties dispute whether the forum selection clause language precludes filing in a federal forum, the forum non conveniens analysis in the Fifth Circuit is: First, the court’s threshold consideration … is whether the civil action might have been brought in the transferee court. Second, assuming the court decides that threshold question in the affirmative, the court then evaluates whether the clause in question is mandatory, permissive, or ambiguous, applying principles of contract law as necessary.

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Bluebook (online)
Smart Communications Collier, Inc. v. Lowndes County, Mississippi, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smart-communications-collier-inc-v-lowndes-county-mississippi-msnd-2022.