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District Court, S.D. Texas • 1996

Smith v. Colonial Penn Insurance

943 F. Supp. 782 | 1996 U.S. Dist. LEXIS 16599

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Takeaway

In short, Smith v. Colonial Penn Insurance shows that a § 1404(a) transfer will be denied when the requested forum is only modestly more convenient, the movant offers vague witness assertions, and transfer would override the plaintiff's chosen forum while risking delay.

Background

Smith brought a breach-of-contract action against Colonial Penn Insurance in the Galveston Division of the Southern District of Texas. Colonial Penn moved under 28 U.S.C. § 1404(a) to transfer the case to the Houston Division.

Colonial Penn argued principally that Houston was more convenient because its employees and representatives could fly into Houston rather than fly there and then drive to Galveston. It also made general assertions about the convenience of witnesses, records, and travel for Smith, who lived in San Antonio. Judge Kent denied the motion and ordered the parties to bear their own taxable costs and expenses on the transfer dispute.

Issues

Issue #1

Whether Colonial Penn carried its burden under 28 U.S.C. § 1404(a) to justify transferring the case from the Galveston Division to the Houston Division.

Holding

No. Colonial Penn did not show that convenience and the interest of justice favored transfer strongly enough to overcome Smith's chosen forum.

Reasoning

Section 1404(a) permits transfer for the convenience of parties and witnesses and in the interest of justice, but the moving defendant bears the burden of showing that transfer is warranted. The decision remains committed to the district court's sound discretion.

The court considered the customary transfer factors: the convenience and availability of parties and witnesses, counsel's location, the location of records, the expense of securing witness attendance and conducting trial, the place of the alleged wrong, possible delay or prejudice from transfer, and the plaintiff's forum choice. Smith's choice of forum was generally entitled to substantial deference.

Colonial Penn's central claim—that its personnel would need to fly into Houston and drive roughly forty to fifty miles to Galveston—showed only minimal inconvenience. The nearby divisions were readily connected by modern roads, and the court regarded the Galveston trip as no more burdensome than travel to downtown Houston from Hobby Airport.

General claims about unnamed witnesses did not establish genuine witness inconvenience. A party seeking transfer must identify the key witnesses and explain the substance and importance of their expected testimony; Colonial Penn did not do so.

Even assuming relevant witnesses, documents, and evidence were close to the Houston courthouse, the court concluded that retaining the action in Galveston would impose little practical burden. The short distance between the divisions, together with modern travel, communication, discovery, and preserved testimony, weakened the asserted convenience rationale.

The court also declined to treat Houston as more convenient for Smith merely because she lived in San Antonio and could fly to Houston. Smith had selected Galveston despite her residence, and the court did not regard the absence of commercial air service to Galveston as a meaningful reason to disregard her choice.

Finally, transfer would introduce a risk of delay without producing a corresponding material gain in convenience. Because Colonial Penn showed, at most, an insignificant travel inconvenience, the balance did not strongly favor the defendant and did not justify disturbing Smith's forum selection.