Venue: transfer

Question 1

Venue transfer

Answer 1

A district court may transfer any civil action to any other district or division where it might have been brought if

(1) for the convenience of the parties and
(2) in the interests of justice.

Question 2

Forum selection clauses

Answer 2

When transfer is sought on the basis of a forum selection clause in a contract, the clause is accorded respect.

Question 3

Forum selection clauses: enforceability

Answer 3

If the clause specifies a federal forum, most circuit courts treat the clause as prima facie valid, to be set aside only upon:

(a) a strong showing that transfer would be unreasonable and unjust; or
(b) that the clause was invalid for reasons such as fraud or overreaching.

Further, the Supreme Court held that a forum selection clause should be given “controlling weight in all but the most exceptional cases,” even if the clause is unenforceable under applicable state law.

Question 4

Applicable state law

Answer 4

(1) If the venue of an action is transferred when the original venue is proper:

• the court to which the action is transferred must apply the law of the state of the transferor court,
• including that state’s rules regarding conflict of law;

(2) When the original venue is not proper, the transferee court applies the law of the state in which it sits;

Question 5

Applicable state law: forum selection clauses

Answer 5

When venue is transferred pursuant to a valid forum selection clause, the transferee court must apply the law, including the choice-of-law rules, of the state in which it is located.