In еarly 1984, Decker Coal Company filed suit against Commonwealth Edison Company in the United States District Court for Montana alleging breach of contract. In the course of that action, the district court enjoined the prosecution of a substantially similar action Edison had filed in Illinois shortly after Decker filed its action in Montana. Edison appeals the injunction and also appeals the district court’s denial of Edison’s motion to dismiss Decker’s complaint for lack of capacity to sue, lack of personal jurisdiction and improper venue, or in the alternative, to transfer the action to the Northern District of Illinois. 1 We determined that the question of capacity to sue under Montana law may be dispositive of the appeal, and certified the following question to the Montana Supreme Court: Does Decker Coal Company, as a joint venture between two out-of-state corporations, have capacity to bring suit as a plaintiff against a corporation under Montana law? The Montana Supreme Court answered the question in the affirmative. The appeal was then resubmitted and we affirm.
FACTS
Decker Coal Company is a joint venture between Wytana, Inc., a Delaware corporation, and Western Minerals, Inc., an Oregon corporation. It is engaged in the surface mining of low sulfur coal and operates its plant in Decker, Montana. Commоnwealth Edison Company is an Illinois corporation. In 1974, Decker Coal and Edison entered a long-term contract under which Decker agreed to supply coal to Edison in quantities between minimum and maximum tonnages from 1978 to 1997.
Although the contract expressly required Decker to supply Montana coal, it apparently was amended in 1983 to allow Decker to supply Wyoming coal in satisfaction of its obligation to supply coal from its mine in Decker, Montana. Article XI of the contract contained a force majeure provision which allowed performance to be deferred or excused upon certain events. Such events included “fire, flood, explosion, strikes, labor disputes, sabotage, riots, civil commotion, ... major equipment failures, unavailability of major transportation facilities or acts of the other party.” The contract called for delivery F.O.B. the Montana mine. The coal would then be shipped by railroad to Edison plants in Illinois and Indiana.
Edison invoked the force majeure provision to defer or terminate coal purchase obligations in May, June and July, 1983. Edison claimed that structural damage to its plant in Illinois and a cracked turbine rotor at its Indiana plant justified invocation of the force majeure provision.
On January 4, 1984, Decker filed a complaint in the District of Montana seeking a *838 declaration that the problems at the Edisоn plants did not qualify as force majeure events. Decker also sought damages for breach of contract, claiming that Edison failed to take sufficient measures to prevent damage to its generating plants thereby breaching an alleged contractual duty to mitigate damage.
Several days later, Edison filed an action in the Northern District of Illinois seeking a declaration that it properly invoked the force majeure provision of the contract.
On February 3, Decker filed a motion in the Montana action to enjoin further prosecution of the Illinois case. On February 8, Edison filed a motion to dismiss the Montana complaint for lack of capacity to sue, lack of personal jurisdiction and improper venue. It also sought transfer of the case to the Northern District of Illinois.
The district court, Chief Judge Battin, ruled that jurisdiction was properly asserted, that venue was proper in Montana because the alleged contract breach occurred in Montana, and that Decker had capacity to sue as a partnership entity. The motion to transfer was denied, and the motion to enjoin the Illinois proceeding was granted.
We heard oral argument on this appeal on February 4, 1985. Submission of the cause was deferred until February 15,1985 to permit counsel to address jurisdictional questions. On March 21, 1985, we ordered further proceedings in this court stayed pending detеrmination by the Montana Supreme Court of the capacity to sue question. On February 20, 1986, the Montana Supreme Court issued its decision holding that, under Montana law, Decker Coal Company does have capacity to bring suit in its own name against Edison.
Decker Coal Co. v. Commonwealth Edison Co.,
DISCUSSION
I. Personal Jurisdiction
The assertion of personal jurisdiction must first comply with the requirements of Montana’s long-arm statute; second, it must not offend due process.
Colonial Leasing Co. v. Pugh Brothers Garage,
A. Montana Long-Arm Statute
The district court concluded that jurisdiction was proper under the terms of the Montana long-arm statute. This court reviews the district court’s interpretation of state law de novo.
Matter of McLinn,
Mont.R.Civ.Pro. 4B(1) provides:
All persons found within the state of Montana are subject to the jurisdiction of the courts of this state. In addition, any person is subject to the jurisdiction of the courts of this state as to any claim for relief arising from the doing personally, through an employee, or through an agent, of any оf the following acts: (a) the transaction of any business within this state....
Commonwealth Edison argues that the district court incorrectly found that Mont. R.Civ.Pro. 4B(l)(a) applied. It contends that its activities within Montana are too limited to qualify as “the transaction of any business within” Montana.
The Montana cases interpreting 4B(l)(a) do not offer precise guidelines for the statute’s interpretation. They do, however, suggest a rather generous approach in defining its reach. The cases
Parker Brothers Farms, Inc. v. Burgess,
Under the contract, the coal is shipped F.O.B. the Montana mine. Commonwealth Edison had accepted delivery of Decker’s coal in Montana for five years prior to Edison’s invocation of the force majeure provisions of the purchase agreement. The finding that Edison transacted business within the state and the assertion of jurisdiction under Mont.R.Civ.Pro. 4B(l)(a) comports with the Montana Supreme Court’s reading of the long-arm statute.
B. Due process
Federal due process requires that a nonresident defendant have minimum contacts with the forum state such that the exercise of personal jurisdiction does not offend traditional notions of fair play and substantial justice.
International Shoe Co. v. Washington,
Limited jurisdiction may be exercised when the “nature and quality” of the defendant’s contаcts with the forum state are significant in relation to the specific cause of action.
Data Disc, Inc.,
(1) The nonresident defendant must do some act or consummate some transaction with the forum or perform some act by which he purposefully avails himself of the privilege of conducting activities in the forum, thereby invoking the benefits and protections of its laws.
(2) The claim must be one which arises out of or results from the defеndant’s forum-related activities.
(3) Exercise of jurisdiction must be reasonable.
Haisten v. Grass Valley Medical Reimbursement Fund, Ltd.,
*840 1.Purposeful Availment
Purposeful availment analysis turns upon whether the defendant's contacts are attributable to his own actions or solely to the actions of the plaintiff.
Burger King,
Commonwealth Edison has purposefully availed itself of the privilege of doing business in Montana. Although contract negotiations took place in Nebraska, the contract expressly requires that Decker deliver the coal in Montana. Moreover, Montana performance is essential because the low-sulfur coal Edison wanted is primarily found in Montana which, together with Wyoming, contains approximately 68 percent of this nation’s low-sulfur coal reserves.
See Commonwealth Edison v. Montana,
2. Arising out of Forum-Related Activities
Because the contract requires the mining and shipment of coal from Montana, Edison’s alleged breach of the long-term supply contract diminishes or extinguishes its need for the product of these activities. Edison argues that the claim arose in Illinois where the events leading to the invocation of the force majeure provisiоns occurred. Decker’s claim, however, arises from the disruption of its contractual expectations under the Montana supply contract.
See Haisten,
3. Reasonableness
Finally, the limited jurisdiction test requires that the exercise of jurisdiction be reasonable. Seven factors have emerged as relevant to this inquiry:
(1) The extent of purposeful interjection into the forum state;
(2) The burden on the defendant of defending in the forum;
(3) The extent of conflict with the sovereignty of defendant’s state;
(4) The forum state’s interest in adjudicating the dispute;
(5) The most efficient judicial resolution of the controversy;
(6) The importance of the forum to plaintiff’s interest in convenient and effective relief;
(7) The existence of an alternative forum.
Raffaele v. Compagnie Generale Maritime,
Edison has purрosefully interjected itself into Montana by requiring contract performance within the state and by accepting deliveries of coal F.O.B. the Montana mine for several years under the contract prior to the invocation of the force majeure provisions.
Improvements in communication and transportation have reduced much of the historical burden of litigating in a distant forum.
Hanson v. Denckla,
Although sovereignty interests may carry significant weight when jurisdiction is asserted ovеr a defendant from a foreign country,
Olsen by Sheldon,
The forum state’s interest in adjudicating the dispute appears rather substantial given the unique location of this country’s low-sulfur coal reserves. Montana’s interest in business transactions that deplete its resources should provide an ample basis for weighing this factor in favor of the forum state. “The entire value of the coal, before transportation, originates in the State, and mining of the coal depletes the resource base and wealth of the State, thereby diminishing a future source of taxes and economic activity.”
Commonwealth Edison Co. v. Montana,
An efficiеnt resolution of the controversy can be obtained in either state. The circumstances leading to Edison’s decision to invoke the force majeure provisions occurred at their plants in Illinois and Indiana but Decker’s injury occurred in Montana. “A court sitting in the district where the injury occurred and where the evidence is located ordinarily will be the most efficient forum.”
Olsen by Sheldon,
Montana offers the most convenient and effective forum to the. plaintiff because Montаna is where Decker suffered injury and disruption.
As to the existence of an alternate forum, Edison is clearly amenable to suit in Illinois and has already filed suit there but this factor cannot overcome the others which favor Montana jurisdiction.
In sum, the exercise of Montana jurisdiction is reasonable. We conclude that the district court properly exercised limited jurisdiction over Edison in Montana. Accordingly, we need not consider whether there was general jurisdiсtion over Edison.
II. Venue
Because the only basis for federal subject matter jurisdiction in this case is diversity of citizenship, the applicable venue statute is 28 U.S.C. § 1391(a). It allows venue “only in the judicial district where all plaintiffs or all defendants reside, or in which the claim arose.” We review venue determinations de novo as a question of law.
Cf. Central Valley Typographical Union No. 46 v. McClatchy Newspapers,
Residence for purpose of venue can be the residence of the partnership entity rather than exclusively that of its individual members.
Denver & Rio Grande Western Railroad v. Brotherhood of Railroad Trainmen,
All of Decker’s employees, coal properties, mining equipment and supplies are located at the mine in Montana. Montana managers supervise and control of the day-to-day mining operations. Only sales and accounting functions take place out of state and these services are performed under the supervision of a management committee which usually meets at the mine in Montana. Therefore, Montana is Decker’s principal place of business and residence for purposes of 28 U.S.C. § 1391(a).
Furthermore, the claim arose in Montana. A claim arises in any district in which a substantial part of the acts, events, or omissions occurred that gave rise to the claim.
Sutain v. Shapiro and Liebeman,
Edison argues that Illinois is a more convenient forum because the trial will inevitably focus on whether Edison properly invoked the force majeure clause. Since the claimed force majeure events occurred in Illinois and Indiana, it is argued, Illinois is a more convenient forum. Although availability of witnesses and access to evidence is a factor in determining venue, it does not control. The determinative factors are set out in the statute: residence of the parties or situs of the claim. We hold that Montana venue is proper under either factor. An argument based on convenience alone is more appropriate in a § 1404 change of venue motion. Transfer or dismissal in favor of a more convenient forum lie within the discretion of the trial court and we consider that issue in the next section.
III. Denial of Motion to Transfer
Edison argues that, even if venue was technically proper in Montana, the trial court erred in denying Edison’s motion to transfer. We review the district court’s denial of transfer motion for an abuse of discretion.
J-R Distributors, Inc. v. Eikenberry,
*843
28 U.S.C. § 1404(a) provides: “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.” This statute partially displaces the common law doctrine of
forum non conveniens. Miskow v. Boeing Co.,
Edison will defend on the ground that the problems at their Illinois and Indiana plants were sufficient to invoke the force majeure provision of the contract. It argues that the Illinois forum is more convenient because it is closer to witnesses and to the plants in case they must be viewed by the jury. We do not feеl that these factors are sufficient to help Edison. Although the liability witnesses may be located in Illinois and Indiana, the damage witnesses primarily reside in Montana. The transfer would merely shift rather than eliminate the inconvenience. Furthermore, the public factors weigh in favor of Montana since that is where the claim arose. The district court concluded that it would be unnecessary for a jury to view the Illinois and Indiana plants and that “[o]n balance, factors relаting to plaintiffs choice of forum, convenience of witnesses and interests of justice weigh in favor of plaintiff.” The court did not abuse its discretion in so holding.
IV. Injunction of Later-Filed Illinois Action
Edison contends that the district court abused its discretion by enjoining prosecution of Edison’s action in the Northern District of Illinois filed nine days after Decker filed its action in Montana. A grant or denial of injunctive relief will be reversed only where the district court abused its discretion or based its decision on an erroneous lеgal standard or on clearly erroneous findings of fact.
Colorado River Indian Tribes v. Town of Parker,
When a district court has jurisdiction over all parties involved, it may enjoin later filed actions.
United States v. Oregon,
Because the Montana district сourt properly exercised personal jurisdiction over Edison, the cause of action arose in Montana, and Montana venue prevails, we hold that the trial court exercised sound judicial discretion in enjoining the later filed Illinois action.
For these reasons the judgment and determinations of the District Court are
AFFIRMED.
Notes
. This court has jurisdiction to review the district court’s denial of motion to dismiss even though it is interlocutory because the same issues underlie both that order and the injunction order.
Fentron Industries v. National Shopman Pension Fund,
