Wald v. Bank of America Corp.
856 F. Supp. 2d 545
E.D.N.Y2012Background
- Wald filed a putative ERISA class action against BOA, its Corporate Benefits Committee, and others (the BOA defendants) on December 7, 2011.
- Plaintiff alleges fiduciary breaches under ERISA by investing plan funds in BOA stock despite known imprudence and by failing to disclose risks to participants.
- BOA defendants moved to transfer the action to the Southern District of New York where related securities actions are pending.
- Plaintiff alleges BOA's mortgage servicing problems (originating from Countrywide) and alleged widespread foreclosures and robo-signing harmed BOA’s stock value.
- A related securities class action and derivative actions arising from the same core facts are pending in SDNY, with substantial overlap of defendants and issues.
- Judge grants transfer to SDNY for reasons of judicial economy and related actions; other relief denied with leave to renew in the transferee court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether forum transfer is appropriate given related actions. | Plaintiff—Wald—urges deference to his chosen forum. | Defendants—BOA—argue transfer necessary for efficiency due to related SDNY actions. | Transfer granted; related actions weigh in favor. |
| Whether the balance of equities favors transfer despite plaintiff’s forum choice. | Plaintiff’s choice should be respected in a single district. | Interests of justice and economy favor transfer. | Interests of justice and judicial economy favor transfer. |
Key Cases Cited
- Delta Air Lines v. Ass’n of Flight Attendants, 720 F. Supp. 2d 213 (S.D.N.Y. 2010) (standard for transfer under § 1404(a) and factor-based approach)
- In re Cuyahoga Equip. Corp., 980 F.2d 110 (2d Cir. 1992) (application of transfer factors; discretion of district court)
- Red Bull Assocs. v. Best Western Int’l, Inc., 862 F.2d 963 (2d Cir. 1988) (forum convenience and interest of justice considerations)
- Jones v. City of New York, 2012 WL 716890 (E.D.N.Y. 2012) (illustrates transfer balancing in presence of related actions)
- Ahmed v. T.J. Maxx Corp., 777 F. Supp. 2d 445 (E.D.N.Y. 2011) (burden on movant to show transfer is proper)