Texas Marine & Brokerage, Inc. v. Euton

• Decision Date: 18 July 2000
• Docket Number: No. CIV. A. 1:00-CV-276.,CIV. A. 1:00-CV-276.
• Parties: TEXAS MARINE & BROKERAGE, INC., Texas Marine of Beaumont, Inc., Texas Marine of Houston, Inc., Texas Marine of Clear Lake, Inc., v. Tim EUTON, Individually and Doing Business as Texas Marine
• Court: U.S. District Court — Eastern District of Texas

120 F.Supp.2d 611

TEXAS MARINE & BROKERAGE, INC., Texas Marine of Beaumont, Inc., Texas Marine of Houston, Inc., Texas Marine of Clear Lake, Inc., v. Tim EUTON, Individually and Doing Business as Texas Marine

No. CIV. A. 1:00-CV-276.

United States District Court, E.D. Texas, Beaumont Division.

July 18, 2000.

Robert Bruce Dunham, Sheldon, Jordan & Dunham, Beaumont, TX, for Plaintiff.

Stephen F. Fogle, Daniel Chapman, Jackson Walker LLP, San Antonio, TX, for Defendant.

ORDER

COBB, District Judge.

Before the Court is the Defendant's "Motion to Dismiss or Transfer or, in the Alternative, for Discovery on Venue." After reviewing the Motion and the briefs from each party, the Court is of the opinion that each Motion should be DENIED.

FACTS

As stated in the Plaintiff's Original Complaint, Texas Marine & Brokerage, Inc. is a Texas corporation formed in 1984. Since that date, Texas Marine & Brokerage, Inc. has done business in the State of Texas as "Texas Marine," either on its own or through one or more subsidiaries whose names incorporate the words "Texas Marine." Those subsidiaries are the other named Plaintiffs, "Texas Marine of Beaumont, Inc.," "Texas Marine of Houston, Inc.," and "Texas Marine of Clear Lake Inc." This business includes the sale of boats, motors, trailers, boating accessories, equipment, and related services.

According to the Defendant's Motion to Dismiss and attached affidavit, Mr. Tim Euton (Defendant) has also been using the "Texas Marine" mark in and around Victoria County Texas since 1988. Defendant's business is also involved in the sale of boats, motors, trailers, boating accessories, equipment, and related services.

It is undisputed that although they use the same business name ("Texas Marine"), the Plaintiffs and the Defendants are completely different entities and have no business relationship whatsoever.

MOTION TO DISMISS FOR IMPROPER VENUE

A party may move for dismissal of a suit based on improper venue under Fed.R.Civ.P. 12(b)(3). The burden to demonstrate why venue is improper and why the forum should be changed lies with the movant. Time, Inc. v. Manning, 366 F.2d 690, 698 (5th Cir.1966); Sanders v. Seal Fleet, Inc., 998 F.Supp. 729, 733 (E.D.Tex.1998).

The Plaintiffs claim that venue is proper under 28 U.S.C. § 1391(b)(2). This venue statute provides that "[a] civil action wherein jurisdiction is not founded solely on diversity of citizenship may, except as otherwise provided by law, be brought only in ... (2) a judicial district in which a substantial part of the event or omissions giving rise to the claim occurred."

This statute was amended in 1990 specifically to reduce "excessive litigation over venue." First of Michigan Corp. v. Bramlet, 141 F.3d 260, 263 n. 3 (6th Cir.1998). The language of the statute, as amended in 1990, operates to establish venue in a given district as long as "substantial" activities took place in that district, even if the activities in another district happen to be "more substantial, or even the most substantial." David D. Siegel, "Commentary on 1988 and 1990 Revisions of Section 1391," appended to 28 U.S.C. § 1391. As applied to Lanham Act claims, "[t]he place where the alleged passing off occurred ... provides an obviously correct venue." Woodke v. Dahm, 70 F.3d 983, 985 (8th Cir.1995). Also, as the district court stated in Woodke, the venue question in Lanham Act cases, or in cases that involve both the Lanham Act and pendant state law claims, is "where were consumers confused by the defendant's acts?" Woodke v. Dahm, 873 F.Supp. 179, 198 (N.D.Iowa).

The issue here is whether "substantial" events giving rise to this lawsuit occurred in the Eastern District of Texas. According to the affidavits that the parties have submitted, it is clear to this Court that the Defendant has advertised its business as "Texas Marine" within the Eastern District of Texas. In fact, in the Defendant's own affidavit, he admits that at least as early as January 1996 and as recently as June/July 2000, he has periodically advertised in Texas Fish & Game magazine. Texas Fish & Game magazine is distributed in the Eastern District of Texas.

This Court finds that these advertisements, along with other events listed in the affidavits submitted to the Court, serve as "substantial" events which have given rise to this lawsuit. Consumers in the Eastern District of Texas could have conceivably been confused by advertisements of a "Texas Marine" boat dealership (the Defendant) that has absolutely no business relationship to the "Texas Marine" boat dealership that does business in Beaumont, Houston, and Clear Lake (the Plaintiffs).

Venue is proper within the Eastern District of Texas, Beaumont Division. The Defendant has not met its burden in demonstrating why venue is. Motion to Dismiss for Improper Venue is hereby DENIED.

MOTION TO TRANSFER VENUE

Also before the Court is the Defendant's Motion to Transfer Venue pursuant to 28 U.S.C. § 1404(a).

The litigant seeking transfer bears the burden of demonstrating that a transfer of venue is...