U.S. ex rel. Ondis v. City of Woonsocket, Ri

• Decision Date: 28 March 2007
• Docket Number: C.A. No. 05-10312-MLW.
• Citation: 480 F.Supp.2d 434
• Parties: UNITED STATES of America, ex rel. Gordon F.B. ONDIS, Relator, v. CITY OF WOONSOCKET, RHODE ISLAND; Susan D. Menard, in her individual and official capacities; Joel D. Mathews, in his individual and official capacities; Paulette Miller, in her individual and official capacities; Owen T. Bebeau, in his individual and official capacities; Michael Annarummo, in his individual and official capacities, Defendants.
• Court: U.S. District Court — District of Massachusetts

480 F.Supp.2d 434

UNITED STATES of America, ex rel. Gordon F.B. ONDIS, Relator, v. CITY OF WOONSOCKET, RHODE ISLAND; Susan D. Menard, in her individual and official capacities; Joel D. Mathews, in his individual and official capacities; Paulette Miller, in her individual and official capacities; Owen T. Bebeau, in his individual and official capacities; Michael Annarummo, in his individual and official capacities, Defendants.

C.A. No. 05-10312-MLW.

United States District Court, D. Massachusetts.

March 28, 2007.

Leon A. Blais, Blais, Parent & Quinn, Mansfield, MA, Patricia M. Connolly, United States Attorney's Office, Boston, MA, for Relator.

Justin P. O'Brien, Michael B. Galvin, Thomas E. Dwyer, Jr., Dwyer & Collora, LLP, Boston, MA, Howard R. Croll, Fontaine & Croll, Ltd., Woonsocket, RI, for Defendants.

MEMORANDUM AND ORDER

WOLF, District Judge.

This is a qui tam action under the False Claims Act, 31 U.S.C. § 3729 et seq. The United States has not intervened. Relator Gordon F.B. Ondis alleges that the defendants, the City of Woonsocket, Rhode Island, its Mayor Susan D. Menard, and various other Woonsocket officials, repeatedly misrepresented to the United States Department of Housing and Urban Development ("HUD") that the City would encourage the expansion of affordable housing in order to obtain HUD funds. The Relator contends that defendants have, since 1995, actually had a policy of discouraging the development of affordable housing in Woonsocket.

The defendants moved to dismiss this case. A hearing on that contested motion was held on January 31, 2007. For the reasons described at the hearing, some of the Relator's claims were dismissed. see February 1, 2007 Order. The court ordered supplemental submissions on the issues of whether subject matter jurisdiction does not exist because this case is based on public disclosures, see 31 U.S.C. § 3730(e)(4)(a), and whether this case should be transferred to the District of Rhode Island pursuant to 28 U.S.C. § 1404(a). Id.

Those submissions have been made. The Relator opposes transfer because the District of Massachusetts has more experience with False Claims Act cases than the District of Rhode Island, Boston is more convenient for the HUD officials who received the allegedly false claims and might be called to testify at trial, and "the United States Attorney in Boston has now invested considerable time in reviewing documents provided by Relator and continues to monitor the case." Relator's Mem. of Law in Opposition to Sua Sponte Transfer of Action at 2. The defendants' request that this court decide the motion to dismiss for lack of subject matter jurisdiction and transfer the case to the District of Rhode Island if the motion is denied. However, for the reasons described below, the court concludes that a transfer to the District of Rhode Island is appropriate and that it should occur immediately.

28 U.S.C. § 1404(a) states that:

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.

"It is well settled that a court may transfer a case sua sponte pursuant to 28 U.S.C. §§ 1404(a) ...." Desmond v. Nynex Corp., 37 F.3d 1484, 1994 WL 577479, *3 (1st Cir.1994).

The court recognizes that generally "there is a strong presumption in favor of plaintiff's choice of forum." Coady v. Ashcraft-Gerel, 223 F.3d 1, 11 (1st Cir.2000). However, "[w]here the operative facts of the case have no material connection with this district, plaintiffs choice of forum carries less weight." Goodman v. Schmalz, 80 F.R.D. 296, 302 (E.D.N.Y.1978). As Professors Charles A. Wright, Arthur R. Miller, and Edward H. Cooper have, explained:

the plaintiffs venue choice is to be given less weight if he or she selects a district court with no obvious connection to the case or the plaintiff is a nonresident of the chosen forum or neither element points to that court. Although not universally followed by other courts, this approach is one of sound judicial administration and reflects good, common sense.

15 Wright, Miller & Cooper, Federal Practice and Procedure: Jurisdiction 3d § 3848 at 134-39 (2007).

The fundamental concern manifest in § 1404(a) is that litigation be conducted in the federal court which will best serve the "interest of justice." Venue exists in the District of Massachusetts because allegedly false claims were mailed to HUD officials in Boston. However, this case arises out of a political dispute concerning whether the City of Woonsocket is appropriately supporting the development of affordable housing. All events except the receipt of the allegedly false claims occurred in Rhode Island. It is in the interest of justice that the litigation of this case, which calls into question the conduct of public officials, be as accessible as possible to the voters of Woonsocket and to the media most likely to inform them about this case. The conduct of this case in Rhode Island will also permit those affected by it to more easily "`monitor the functioning of our courts, thereby insuring quality, honesty, and respect for our legal system.'" Federal Trade Commission v. Standard Financial Management, 830 F.2d 404, 410 (1st Cir.1987) (quoting In the Matter of Continental Illinois Securities Litigation, 732 F.2d 1302, 1308 (7th Cir. 1984)). These considerations weigh in favor of a transfer to the District of Rhode Island.

The convenience of the witnesses also strongly favors a transfer to the District of Rhode Island.

The convenience of the witnesses is "[p]robably the most important factor, and the factor most frequently mentioned, in passing on a motion to transfer under 28 U.S.C.A. 1404(a)." 15 Wright, Miller & Cooper, Federal Practice and Procedure 2d § 3851 at 415 (1986). see also e.g., Saminsky v. Occidental Petroleum Corp., 373 F.Supp. 257, 259 (S.D.N.Y.1974). ("The most significant factor to be considered is the convenience of party and non-party witnesses."); Houk v. Kimberly-Clark Corp., 613 F.Supp. 923, 929 (W.D.Mo. 1985) ("The convenience of witnesses is said to be a primary, if not the most important, factor in passing on a motion to transfer under 1404(a)."). "In analyzing the convenience of the witnesses, the Court must consider not only the number of potential witnesses located in the transferor and transferee districts, but also the nature and quality of their testimony and whether they can be compelled to testify." Ratner v. Hecht, 621 F.Supp. 378, 382 (N.D.Ill.1985).

Brant Point Corporation v. Poetzsch, 671 F.Supp. 2, 3 (D.Mass.1987).

The Relator has not identified a single witness from Massachusetts he definitely intends to call at any trial, let alone described the nature of his or her testimony. In contrast, according to the defendants' affidavits, all of the individual defendants reside and are employed in Woonsocket, Rhode Island. Other potential named witnesses, including Woonsocket municipal employees Joyce Peno and Roger Sawyer (...