Walters v. Famous Transports, Inc.

District Court, N.D. California·Decided September 23, 2020·No. 4:19-cv-08016·Unknown

Opinion

1 UNITED STATES DISTRICT COURT 2 NORTHERN DISTRICT OF CALIFORNIA 3 4 GREGORY WALTERS, ET AL., Case No. 4:19-cv-08016-YGR

5 Plaintiffs, ORDER GRANTING MOTION TO TRANSFER 6 vs. VENUE

7 FAMOUS TRANSPORTS, INC., ET AL., Re: Dkt. No. 36 8 Defendants.

9 Plaintiffs Gregory Walters, and Christi Walters bring this putative class-action lawsuit 10 against defendants Famous Transports, Inc. (“Famous”), Panther II Transportation, Inc. (“Panther 11 II”), ArcBest Logistics, Inc. (“ArcBest Logistics”), and ArcBest Corporation (“ArcBest”, and 12 collectively, the “ArcBest entities”) for failure to provide (1) required meal periods and (2) 13 required rest periods; failure to pay (3) overtime wages, (4) minimum wage, and (5) all wages due 14 to discharges or quitting employees; (6) failure to maintain records; (7) failure to provide accurate 15 itemized statements; (8) failure to indemnify employees for necessary expenditures incurred in the 16 discharge of duties; (9) unlawful deductions from wages;1 (10) breach of contract; (11) breach of 17 covenant of good faith and fair dealing; and (12) unfair and unlawful business practices in 18 violation of the California Unfair Competition Law (“UCL”) (Dkt. No. 1-1 (Class Action 19 Complaint (“CAC”)) ¶¶ 22-85.) Defendants removed the case to this Court on December 6, 2019. 20 (Dkt. No. 1 (“Removal”).) 21 Now before the Court is defendants Panther II’s, and the ArcBest entities’ (collectively, the 22 “moving defendants”) motion to transfer venue to the Northern District of Ohio.2 (Dkt. No. 36.) 23 1 Plaintiffs allege violations of California Labor Code §§ 201, 202, 203, 221, 222.5, 223, 24 226, 226.7, 400-410, 510, 512, 1174, 1194, 1197, 1198, and 2802, as well as violation of Industrial Welfare Commission (“IWC”) Wage Order No. 9-2001 §§ 3, 4, 7, 8, 11, and 12. 25 2 The hearing was originally vacated due to General Order 72, which vacated all oral 26 arguments in light of the ongoing coronavirus (COVID-19) pandemic. The Court has determined that the motion is appropriate for decision without oral argument, as permitted by Civil Local Rule 27 7-1(b) and Federal Rule of Civil Procedure 78. See also Lake at Las Vegas Investors Group, Inc. 1 Having carefully considered the pleadings and the papers submitted, and for the reasons set forth 2 more fully below, the Court hereby GRANTS the motion to transfer venue.3 3 I. LEGAL STANDARD 4 Under 28 U.S.C. section 1404(a), a district court has discretion to transfer an action to 5 another forum. That statute provides: For the convenience of the parties and witnesses, in the interest of 6 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 7 or division to which all parties have consented. 8 In other words, section 1404(a) permits transfer to “any district where venue is also proper . . . or 9 to any other district to which the parties have agreed by contract or stipulation.” Atlantic Marine 10 Const. Co. v. U.S. Dist. Court, 571 U.S. 49, 59 (2013). Forum selection clauses may be enforced 11 through a motion to transfer under section 1404(a). Id. 12 Section 1404(a) “does not condition transfer on the initial forum's being ‘wrong’ . . . [a]nd 13 it permits transfer to any district where venue is also proper . . . or to any other district to which 14 the parties have agreed by contract or stipulation.” Atlantic Marine Const. Co., Inc. v. United 15 States District Court, 571 U.S. 49, 59 (2013) (“Atlantic Marine”). Importantly, the moving party 16 carries the burden of showing that the transferee district is the more appropriate forum. Jones v. 17 GNC Franchising, Inc., 211 F.3d 495, 497 (9th Cir. 2000). 18 Courts considering transfer must first determine whether the action could have been 19 brought in the target district in the first instance. See Hoffman v. Blaski, 363 U.S. 335, 343-44, 80 20 S.Ct. 1084, 4 L.Ed.2d 1254 (1960). An action could have been brought in any court that has 21 subject matter jurisdiction over the claims and personal jurisdiction over the defendant, and where 22 venue would have been proper. See id. Here, the moving defendants contend, and plaintiffs do 23 not appear to dispute, that this action could have been brought in the Northern District of Ohio. 24 The moving defendants further aver that a forum selection clause requires that the venue be 25 transferred to the Northern District of Ohio – which plaintiffs reject. 26

27 3 To expedite the issuance of this order, the Court assumes familiarity with the underlying 1 “In the typical case not involving a forum-selection clause, a district court considering a 2 [section] 1404(a) motion . . . must evaluate both the convenience of the parties and various public- 3 interest considerations.” Atlantic Marine, 571 U.S. at 62. If the action could have been brought in 4 the target district, courts then undertake an “individualized, case-by-case consideration of 5 convenience and fairness.” Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29, 108 S.Ct. 2239, 6 101 L.Ed.2d 22 (1988) (quoting Van Dusen v. Barrack, 376 U.S. 612, 622, 84 S.Ct. 805, 11 7 L.Ed.2d 945 (1964)) (internal quotations omitted). Relevant factors the Court may consider 8 include: (1) plaintiff's choice of forum, (2) convenience of the parties, (3) convenience of the 9 witnesses, (4) ease of access to the evidence, (5) familiarity of each forum with the applicable law, 10 (6) feasibility of consolidation with other claims, (7) any local interest in the controversy, and (8) 11 the relative court congestion and time of trial in each forum. Vu v. Ortho-McNeil Pharm., Inc., 602 12 F. Supp. 2d 1151, 1156 (N.D. Cal. 2009).4 13 “[T]he calculus changes . . . when the parties’ contract contains a valid forum selection 14 clause . . . .” Atlantic Marine, 571 U.S.at 63. “[A] valid forum selection clause should be given 15 controlling weight in all but the most exceptional cases,” and the “plaintiff bears the burden of 16 establishing that transfer to the forum for which the parties bargained is unwarranted,” based upon 17 public interest factors. Id. (citation and brackets omitted). Public interest factors to be considered 18 include relative court congestion, local interest in the controversy, and familiarity with the 19 applicable law. Id. at 62 n.6. 20 II. ANALYSIS 21 Here, the moving defendants aver that transfer is appropriate under a forum selection 22 clause in the relevant contractual agreement. Alternatively, the moving defendants contend that 23 transfer is warranted under the relevant factors to be considered under a section 1404(a) analysis. 24 The Court addresses each in turn below. 25

26 4 This list is non-exclusive, and courts may consider other factors. See Williams v. Bowman, 157 F.Supp.2d 1103, 1106 (N.D. Cal. 2001) (noting that this list of factors “does not 27 exhaust the possibilities” and highlighting differing combinations of factors used by courts in A. Forum Selection Clause 1 The moving defendants move upon an Independent Contractor Operating Agreement 2 (“Operating Agreement”) that was in effect between Famous and Panther II. (Dkt. No. 36-1 at 6- 3 40.) Specifically, the Operating Agreement contains a forum selection clause, which states: 4 ANY CLAIM OR DISPUTE ARISING FROM OR IN 5 CONNECTION WITH THIS AGREEMENT OR OTHERWISE WITH RESPECT TO THE OVERALL RELATIONSHIP 6 BETWEEN THE PARTIES . .

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