Houston Trial Reports v. Lrp Publications, Inc.

• Decision Date: 31 August 1999
• Docket Number: No. Civ.A. H-99-0781.,Civ.A. H-99-0781.
• Citation: 85 F.Supp.2d 663
• Parties: HOUSTON TRIAL REPORTS, INC. and Blue Sheet Publications, Inc., Plaintiffs, v. LRP PUBLICATIONS, INC. and Jana Shellington, Defendants.
• Court: U.S. District Court — Southern District of Texas

85 F.Supp.2d 663

HOUSTON TRIAL REPORTS, INC. and Blue Sheet Publications, Inc., Plaintiffs, v. LRP PUBLICATIONS, INC. and Jana Shellington, Defendants.

No. Civ.A. H-99-0781.

United States District Court, S.D. Texas, Houston Division.

August 31, 1999.

COPYRIGHT MATERIAL OMITTED

George R. Neely, Houston, TX, for Plaintiffs.

William Wesley Ogden, Jr., Ogden Gibson White and Broocks, Houston, TX, Joseph D Wargo, Jeanine L Gibbs, Altman Kritzer et al., Atlanta, GA, Michael S. French, Altman Kirtzer et al., Atlanta, GA, for Defendants.

MEMORANDUM AND ORDER

ROSENTHAL, District Judge.

Plaintiffs, Houston Trial Reports, Inc. and Blue Sheet Publications, Inc., are Texas corporations located in Harris County, Texas. (Docket Entry No. 1, Ex. A, pp. 1-2). Plaintiffs are engaged in the jury verdict reporting business, in which they "gather, format and publish various information obtained from individuals concerning the trial and settlement of lawsuits in the various venues and jurisdictions." (Docket Entry No. 1, Ex. A, pp. 2-3). Defendant LRP Publications, Inc., a Pennsylvania corporation with its corporate headquarters in Palm Beach Gardens, Florida, describes itself as a "leading publisher of electronic and print services for the professional and legal markets." (Docket Entry No. 22, Ex. H to the Affidavit of Doris Hardin). LRP's publications include a national jury verdict research database. (Docket Entry No. 22, Ex. C to the Affidavit of Doris Hardin).

Defendant Jana Shellington is a resident of Florida and a vice-president of the corporate defendant. (Docket Entry No. 4, ¶ 5). In this lawsuit, plaintiffs allege that Shellington sent a letter to plaintiffs seeking to purchase a subscription to the "Blue Sheet," plaintiffs' jury verdict report for Harris County, Texas. (Docket Entry No. 1, Ex. A, p. 3). Plaintiffs allege that LRP obtained access to plaintiffs' database and used that access to include information from plaintiffs' database in LRP's own jury verdict research products, interfering with plaintiffs' efforts to sell its data to nationwide companies such as Westlaw and Lexis/Nexis. (Docket Entry No. 22, Affidavit of Doris Hardin, p. 3).

The following motions are pending:

(1) Defendants' motion to dismiss the claims against Shellington for lack of personal jurisdiction, under Fed. R.Civ.P. 12(b)(2). (Docket Entry No. 4);

(2) Defendants' motion to transfer venue under 28 U.S.C. § 1404(a) to the United States District Court for the Southern District of Florida, West Palm Beach Division, where related litigation is pending and where personal jurisdiction would be available as to all defendants. (Docket Entry No. 14);

(3) Defendants' motion to dismiss or have plaintiffs replead under Fed. R.Civ.P. 9(b), 12(b)(6), and 12(e). (Docket Entry No. 4).

Based on the pleadings, the motions and responses, the parties' submissions, and the applicable law, this court GRANTS the motion to transfer under section 1404(a). The motion to dismiss the claims against Shellington for lack of personal jurisdiction is moot. This court does not reach the remaining challenges to the pleadings. The reasons are set out below.

I. Background

In this removed state court suit, plaintiffs allege that LRP has used its access to plaintiffs' databank to enable LRP to compete against plaintiffs in selling data to Westlaw and/or to Lexis/Nexis. (Docket Entry No. 1, Ex. A, pp. 3-6). Asserting claims for tortious interference with contract and prospective business relations, civil conspiracy, unfair competition, business disparagement, and fraud, plaintiffs seek $500,000 in actual damages on each claim individually or on all claims together, and $2 million in punitive damages. (Docket Entry No. 1, Ex. A, pp. 3-6). Plaintiffs also seek a declaratory judgment of the parties' rights and obligations with respect to plaintiffs' database and defendants' alleged misuse of information in that database. (Docket Entry No. 1, Ex. A, p. 7). Plaintiffs attach to their petition a letter from Jana Shellington, dated February 7, 1997, sent from a Florida address, in which she stated that she had previously practiced law in Houston, Texas; that she had recently moved to Florida; that she wished to continue a reduced practice; and that she wished to receive a subscription to the Houston Trial Reports. (Docket Entry No. 1, Ex. A, p. 13). Shellington enclosed a check for the subscription amount. (Docket Entry No. 1, Ex. A, p. 13). Plaintiffs allege that Shellington was attempting to obtain this subscription for the benefit of her employer, LRP. (Docket Entry No. 1, Ex. A, p. 3). The only basis for the assertion of jurisdiction against Shellington is the letter she sent to plaintiff Houston Trial Reports, Inc. attempting to obtain a subscription, in Florida, to Houston Trial Reports, plaintiffs' publication.

With their motion to dismiss the claims against Shellington for lack of personal jurisdiction, defendants submit an affidavit from Shellington, in which she denies ever having lived, owned or leased property, maintained a bank account, had a telephone listing, or personally conducted any regular or continued business, in Texas. (Docket Entry No. 4, Ex. 1, ¶¶ 3-7).

This case is not the first in which a local jury verdict reporter has sued LRP, alleging that an LRP representative obtained a subscription to the local jury verdict publication and used the subscription to obtain information for wrongful use in its own, national legal publications database. In Law Bulletin Publishing Co. v. LRP Publications, Inc., 992 F.Supp. 1014 (N.D.Ill. 1998), the district court in the Northern District of Illinois faced a complaint and threshold motions similar to those pending here. That court granted defendants' motion to transfer venue to the Southern District of Florida. Law Bulletin, 992 F.Supp. at 1021. The case is now pending in that district. (Docket Entry No. 15, p. 10). Defendants cite the Illinois court's decision and the pendency of the related case in the Southern District of Florida in support of their motion to transfer venue in this case.

This court first addresses the defendants' challenge to venue.

II. The Motion to Transfer Under Section 1404(a)

Section 1404(a) governs this motion for transfer. It provides: "For 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." The purpose of this statute is to protect litigants, witnesses, and the public against unnecessary inconvenience and expense, and to avoid wasted time, energy, and money. See Van Dusen v. Barrack, 376 U.S. 612, 616, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964); Stabler v. New York Times Co., 569 F.Supp. 1131, 1137 (S.D.Tex. 1983).¹

The decision to transfer a pending case is committed to the sound discretion of the district court. See Jarvis Christian College v. Exxon Corp., 845 F.2d 523, 528 (5th Cir.1988); Robertson v. M/V Cape Hunter, 979 F.Supp. 1105, 1106 (S.D.Tex.1997). The party moving for a change of venue bears the burden of demonstrating why the forum should be changed. See Peteet v. Dow Chem. Co., 868 F.2d 1428, 1436 (5th Cir.1989); Dearing v. Sigma Chem. Co., 1 F.Supp.2d 660, 664 (S.D.Tex.1998). "Unless the balance of factors strongly favors the moving party, the Plaintiff's choice of forum generally should not be disturbed." Henderson v. AT & T Corp., 918 F.Supp. 1059, 1065 (S.D.Tex.1996); see also Time, Inc. v. Manning, 366 F.2d 690, 698 (5th Cir.1966).

Section 1404(a) permits transfer of venue when such transfer would be "[f]or the convenience of parties and witnesses, and in the interest of justice." The district court adjudicates motions to transfer through "individualized, case-by-case consideration[s] of convenience and fairness." Van Dusen v. Barrack, 376 U.S. 612, 622, 84 S.Ct. 805, 11 L.Ed.2d 945 (1964). "A motion to transfer thus calls on the district court to weigh in the balance a number of case-specific factors." Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22, 29, 108 S.Ct. 2239, 101 L.Ed.2d 22 (1988); see also Hogan v. Malone Lumber, Inc., 800 F.Supp. 1441, 1443 (E.D.Tex.1992); Frazier v. Commercial Credit Equip. Corp., 755 F.Supp. 163, 166 (S.D.Miss.1991); Fletcher v. Southern Pacific Transp. Co., 648 F.Supp. 1400, 1401 (E.D.Tex.1986).

Both private and public interest factors influence the court's transfer determination. Private interest factors involve the preferences and conveniences of the parties and witnesses in the case. They include: (1) the availability and convenience of witnesses and parties, (2) the cost of obtaining the attendance of witnesses and other trial expenses, (3) the location of books and records; (4) the place of the alleged wrong; (5) the plaintiff's choice of forum; (6) the possibility of delay and prejudice if transfer is granted; and (7) the location of counsel. See LeBouef v. Gulf Operators, Inc., 20 F.Supp.2d 1057, 1059 (S.D.Tex.1998); Dearing, 1 F.Supp.2d at 664; Dupre v. Spanier Marine Corp., 810 F.Supp. 823, 825 (S.D.Tex.1993); Hogan, 800 F.Supp. at 1443. The public interest factors address broader objectives, such as the fair and efficient administration of the judicial system. See, e.g., Jumara v. State Farm Ins. Co., 55 F.3d 873, 879-880 (3d Cir.1995). The court must determine whether the balance of the public and private interest factors "strongly outweighs the plaintiff's choice of forum" such that transfer is appropriate. See Henderson, 918 F.Supp. at 1068.

(A) Private Interest Factors

In this lawsuit, plaintiffs assert tort claims similar in form to intellectual property infringement claims. Courts have observed that "[i]ntellectual property infringement suits often focus on the activities of the alleged infringer, its employees, and its documents; therefore the location of the alleged infringer's principal place of business is often the critical and controlling consideration" in adjudicating...