Columbian Chemicals Company v. Gear Reducer Services, LLC Case Transferred to the Western District of Louisiana, Lafayette Division.
4:17-cv-01617
S.D. Tex.Jul 11, 2017Background
- Columbian Chemicals filed suit in the 16th Judicial District Court for the Parish of St. Mary, Louisiana.
- Defendants removed the action to the U.S. District Court for the Southern District of Texas, Houston Division.
- Plaintiff moved to remand, arguing removal violated 28 U.S.C. § 1441(a) because removal to this district/division was improper.
- Defendants conceded venue in this district was improper but asked the court to transfer the case to the U.S. District Court for the Western District of Louisiana, Lafayette Division, under 28 U.S.C. § 1406(a).
- The parties did not dispute federal subject-matter jurisdiction under 28 U.S.C. § 1332 (diversity and amount in controversy).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the improper removal requires remand to state court | Removal to this federal district was improper; case should be remanded to the original Louisiana state court | Removal to the wrong federal district is procedural; court should transfer to the correct federal district instead of remand | Transfer, not remand: case denied remand and was transferred to the Western District of Louisiana, Lafayette Division |
Key Cases Cited
- Mills v. Beech Aircraft Corp., 886 F.2d 758 (5th Cir. 1989) (district court may raise venue defects sua sponte)
- Kreimerman v. Casa Veerkamp, S.A. de C.V., 22 F.3d 634 (5th Cir. 1994) (removal to wrong district is procedural; transfer under § 1406(a) appropriate when subject-matter jurisdiction exists)
- S.W.S. Erectors, Inc. v. Infax, Inc., 72 F.3d 489 (5th Cir. 1996) (wrong-district removal does not require remand; interest of justice favors transfer)