Haworth, Inc. v. Herman Miller, Inc.

• Decision Date: 09 December 1992
• Docket Number: Civ. A. No. 1:92-CV-0068-JOF.
• Citation: 821 F. Supp. 1476
• Parties: HAWORTH, INC., Plaintiff, v. HERMAN MILLER, INC., et al., Defendants.
• Court: U.S. District Court — Northern District of Georgia

821 F. Supp. 1476

HAWORTH, INC., Plaintiff, v. HERMAN MILLER, INC., et al., Defendants.

Civ. A. No. 1:92-CV-0068-JOF.

United States District Court, N.D. Georgia, Atlanta Division.

December 9, 1992.

Ronald Louis Reid, Frank Garrett Smith, III, Alston & Bird, Atlanta, GA, William K. West, George M. Sirilla, Nancy J. Linck, Jeffrey A. Simenauer, G. Paul Edgell, Barry Golob, James D. Berquist, Cushman, Darby & Cushman, Washington, DC, Dale H. Thiel, Flynn, Thiel, Boutell & Tanis, Kalamazoo, MI, Stuart I. Friedman, Friedman, Witenstein & Hochman, New York City, for plaintiff.

William H. Kitchens, Arnall, Golden & Gregory, Atlanta, GA, Joel W. Benson, Jeffrey M. Duncan, Roy E. Hofer, David A. Anderson, Michael E. Milz, Glen P. Belvis, Richard A. Cederoth, Allan J. Sternstein, Willian, Brinks, Olds, Hofer, Gilson & Lione, Chicago, IL, Stephen Melvin Dorvee, Arnall, Golden & Gregory, Atlanta, GA, James E. Christenson, Herman Miller, Inc., Zeelon, MI, Susan A. Cahoon, Kilpatrick & Cody, Atlanta, GA, for defendants.

ORDER

FORRESTER, District Judge.

This patent infringement action is before the court on Defendant Herman Miller, Inc.'s (hereinafter "Herman Miller") motion to transfer this action to the Western District of Michigan. Plaintiff Haworth, Inc. (hereinafter "Haworth"), opposes such a transfer. The controlling issues in this dispute are whether Herman Miller has met its burden to show that the convenience of the parties and witnesses outweigh Haworth's choice of forum, and if so, whether Haworth can nonetheless resist Herman Miller's motion to transfer because the interests of justice are promoted by bringing this action in the Northern District of Georgia rather than the Western District of Michigan in order to assure that the parties are able to obtain a fair trial, untainted by juror bias or interest.

The court finds that Herman Miller has met its burden to show that a transfer would be mandated to promote the interests of convenience and wise judicial administration of this action. Further, the court finds that Haworth has failed to show that the parties will be unable to obtain a fair trial in the Western District of Michigan because of juror bias. Therefore, this action will be transferred to the United States District Court for the Western District of Michigan.

I. BACKGROUND

Haworth is a corporation organized and existing under the laws of the State of Michigan, with its principal place of business and corporate headquarters located in Holland, Michigan. Herman Miller is also a corporation organized and existing under the laws of the State of Michigan, with its principal place of business in Michigan and its corporate headquarters in Zeeland, Michigan. Defendant Carithers-Wallace-Courtenay, Inc., doing business as CWC Office Outfitters (hereinafter "CWC"), is one of Herman Miller's largest dealers in the office furniture industry. Both Haworth and Herman Miller have a substantial presence in the Northern District of Georgia.

At issue in this action are patents involving systems office furniture, specifically wall panels with pre-wired power systems. Herman Miller and Haworth are, respectively, the number two and number three manufacturers of systems office furniture in the country. The leading manufacturer of systems office furniture is Steelcase, Inc. (hereinafter "Steelcase"). Steelcase is a Michigan corporation with its principal place of business in Michigan and is headquartered in Grand Rapids, Michigan.

In November of 1985, Haworth successfully sued Steelcase for the alleged infringement of the aforementioned patents involving electric wall panels. See Haworth, Inc. v. Steelcase, Inc., 685 F.Supp. 1422 (W.D.Mich. 1988), aff'd in part, reversed in part, 867 F.2d 615 (Fed.Cir.1989) (unpublished), cert. denied, 490 U.S. 1067, 109 S.Ct. 2067, 104 L.Ed.2d 632 (1989).

After the judgment Steelcase filed a separate patent suit against Haworth in the Western District of Michigan, alleging that Haworth infringed two Steelcase patents concerning improvements in electrified wall panel systems. In this second action Haworth counterclaimed against Steelcase, alleging the infringement of two additional Haworth patents relating to electrified wall panel systems and office equipment. Ultimately, this second action was consolidated with the first action awaiting a determination on damages, and all remaining disputes between Haworth and Steelcase were effectively removed from federal court to be settled by binding alternative dispute resolution (ADR). The ADR process between Haworth and Steelcase is still proceeding.

The office system furniture industry and related businesses are major employers in Western Michigan.¹ Furthermore, the "big three" office furniture manufacturers are well known corporate citizens of their communities. As a result of the office furniture industry's importance, the litigation between Haworth and the other office furniture industry members has generated significant interest and a large amount of media coverage. The majority of this coverage has been factual in nature, although a small number of articles could be considered inflammatory or prejudicial. These latter pieces generally relate to the potential negative impact to the office furniture industry as a whole from the pending patent litigation, and specifically to the potential severe economic effects to industry members which are found liable to Haworth for patent infringement.

II. DISCUSSION

Based upon the high visibility of the office systems furniture industry in the Western District of Michigan and the alleged extreme public reaction to the Steelcase litigation and intra-industry litigation in general, Haworth contends that the interests of justice require that Herman Miller's motion to transfer this action be denied in order to ensure Haworth's right to an impartial jury. Herman Miller argues that this case should be transferred in order to facilitate the convenience of the parties and witnesses in this litigation, almost all of whom reside in the Western District of Michigan.

In order to determine if a transfer of this action is appropriate, the court must first weigh the appropriate factors to determine if a transfer of this action is mandated notwithstanding Plaintiff Haworth's choice of forum. Assuming a transfer is called for, the court must determine if it has the authority to sever a cause of action against a properly joined defendant, transfer the cause of action as to one defendant, and stay the cause of action as to the other defendant.

A. Merits of Transfer

The statutory authority for transferring or changing the venue of an action pending in federal court is provided for in 28 U.S.C. § 1404(a), which states: "For the convenience of parties and witnesses, in the interests of justice, a district court may transfer any civil action to any other district or division where it might have been brought."

1. Convenience and Judicial Administration

The general rule is that a "plaintiff's choice of forum should not be disturbed unless it is clearly outweighed by other considerations." Howell v. Tanner, 650 F.2d 610, 616 (5th Cir.1981)²; see also Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 508, 67 S.Ct. 839, 843, 91 L.Ed. 1055 (1947) ("unless the balance is strongly in favor of the defendant, the plaintiff's choice of forum should rarely be disturbed"). However, where the forum selected is not the home district for any of the parties involved in the action, plaintiff's original choice of forum is entitled to less weight. Electronic Transaction Network v. Katz, 734 F.Supp. 492, 501 (N.D.Ga.1989); Prather v. Raymond Constr. Co., Inc., 570 F.Supp. 278, 284 (N.D.Ga.1983).

The fundamental considerations of a motion to transfer are convenience and justice. Van Dusen v. Barrack, 376 U.S. 612, 616, 84 S.Ct. 805, 809, 11 L.Ed.2d 945 (1964). The purpose of the transfer provision "is to prevent the waste `of time, energy and money' and `to protect litigants, witnesses and the public against unnecessary inconvenience and expense....'" Id. (citing Continental Grain Co. v. Barge F.B.L.-585, 364 U.S. 19, 26-27, 80 S.Ct. 1470, 1474-75, 4 L.Ed.2d 1540 (1960)).

The court finds that plaintiff's choice of venue is not controlling in this matter, where no particular interest is served by the selection of this particular forum. Both Haworth and Herman Miller are Michigan corporations, and while CWC is a Georgia corporation, it is in reality a secondary or indirect participant to this litigation.

Key to this holding is the convenience the Western District of Michigan provides to the parties and other third-party witnesses which is not present in the Northern District of Georgia. Furthermore, in the Western District of Michigan, these witnesses are subject to compulsory process that is not available to the court in the Northern District of Georgia. Specific witnesses who are likely to be called at trial and who reside in the Western District of Michigan include both Haworth's and Herman Miller's corporate employees who have relevant information concerning the development of the patents at issue, existing prior art, or potential damages as a result of any infringement; the three inventors of the patents at issue; the prosecuting attorney involved with the patents at issue; Herman Miller's electrical supplier which manufactures an electrical distribution apparatus used in Herman Miller's electrified wall panels or frames at issue in this suit; and third-party designers who developed Herman Miller's accused electrical wall panels and frames.

Further, the Michigan court is familiar with the patent in question.³

Thus, the court finds that Herman Miller has met its burden to show through clear and convincing evidence that the convenience of the parties and witnesses clearly outweighs the plaintiff's choice of forum.

2. Interests of Justice: Fair Trial and Jury Bias

Haworth argues that this is not the normal case and that the...