ORDER DENYING DEFENDANT ME-DAIRE, INC.’S MOTION TO DISMISS FOR LACK OF PERSONAL JURISDICTION, MOTION TO DISMISS OR TRANSFER FOR IMPROPER VENUE AND MOTION FOR DISCRETIONARY VENUE TRANSFER
Plaintiff brings this wrongful death lawsuit based upon the October 10, 1998 passing of her husband. Now before the Court is Defendant MedAire, Inc.’s (“MedAire”) Motion to Dismiss for Lack of Personal Jurisdiction, Motion to Dismiss or Transfer for Improper Venue, and Motion for Discretionary Venue Transfer, each filed December 26, 2000. For the reasons stated below, MedAire’s Motions are DENIED.
I. FACTUAL SUMMARY
On September 24, 1998, Plaintiff and her husband were scheduled to travel on Continental Airlines, Inc. (“Continental”) from their home in Tulsa, Oklahoma to Frankfurt, Germany. In order to reach Frankfurt, they flew from Tulsa to Houston, Texas. In Houston, they boarded Continental Flight 1720 bound for Newark, New Jersey, from which point they were scheduled to catch their international flight to Frankfurt.
Tragically, shortly after departing Houston on Flight 1720, Plaintiffs husband, Ralph McCaskey, is alleged to have suffered a stroke. Despite Mr. McCaskey’s condition, however, Flight 1720 continued on to its planned destination of Newark, New Jersey. Upon arriving in Newark, Plaintiff and her husband sought medical attention and did not board their international flight. Several weeks later, on October 10, 1998, while aboard a train returning to Tulsa from New Jersey, Mr. McCaskey died, allegedly fifcm complications attributable to the September 24 stroke.
As is common in the airline industry, Continental had a contract with a company, here Defendant MedAire, to provide medical advice in the event of in-flight medical emergencies. MedAire employs physicians who, based upon the information provided to them, assess the medical situation from afar. MedAire then makes recommendations to the flight crew regarding care of the ill traveler and possible flight diversions. On September 24, 1998, Continental contacted MedAire and allegedly sought and received advice regarding how to proceed in light of Mr. McCaskey’s medical situation.
On September 22, 2000, Plaintiff filed suit against Continental and others. Soon thereafter, on October 5, 2000, Plaintiff amended her Complaint, adding MedAire as a Defendant in this action. Plaintiff now alleges, in essence, that MedAire was negligent in its provision of medical services, and that this negligence led to Mr. McCaskey’s death a few weeks later.
MedAire is not a Texas citizen. It is, rather, an Arizona corporation with its principal place of business in Phoenix, Arizona. MedAire now argues, alternatively, that this Court lacks personal jurisdiction over it, that venue is improper, or that the
II. ANALYSIS
A. Motion to Dismiss for Lack of Personal Jurisdiction
MedAire seeks dismissal pursuant to Fed.R.Civ.P. 12(b)(2), contending that this Court lacks personal jurisdiction over it. In federal court, personal jurisdiction over a nonresident defendant is proper when: (1) the defendant is amenable to service of process under the forum state’s long-arm statute, and (2) the exercise of personal jurisdiction over the defendant is consistent with due process.
See Stripling v. Jordan Prod. Co., LLC,
Whether the exercise of personal jurisdiction over a defendant is consistent with the Due Process Clause of the United States Constitution likewise requires a two-pronged inquiry. First, the Court must conclude that the defendant has “minimum contacts” with Texas.
See International Shoe Co. v. Washington,
The “minimum contacts” aspect of due process can be satisfied by either finding general jurisdiction or specific jurisdiction.
See Wilson,
1. Minimum, Contacts
Plaintiffs First Amended Complaint (“Complaint”) alleges that her husband’s stroke occurred “shortly after” departing Houston.
1
Pl.’s 1st Am. Compl. at para. 17. Apparently based upon these allegations, Plaintiff contends, in her Response to MedAire’s Motion to Dismiss, that Me-dAire’s medical advice was dispensed in (over) Texas, and that MedAire’s “consultation caused Ralph McCaskey harm while McCaskey was physically present within the State of Texas.” PL’s Resp. at pg. 12. If Plaintiff could carry her prima facie burden on this assertion, this would be a contact from which specific jurisdiction would likely attach.
See Wien Air Alaska, Inc. v. Brandt,
Notwithstanding these deficiencies, however, the Court notes that several factors nonetheless support finding that Me-dAire’s contacts in Texas are sufficient to establish specific personal jurisdiction: (1) MedAire entered into a contract with Houston, Texas-based Continental to provide in-flight medical assistance in Texas and elsewhere; (2) MedAire had similar contracts to provide its medical service for numerous other airlines operating in Texas; (3) one of MedAire’s physicians lives and works in Texas; and (4) the flight on which Plaintiff was traveling originated in Houston, Texas. 4
The most crucial of these contacts is the contract between Continental and Me-dAire. When a nonresident defendant contracts with a forum resident, this may, in some instances, suffice to establish that the defendant has purposefully availed itself of the forum state’s laws.
Compare Burger King,
MedAire provided medical advice to aid Mr. McCaskey aboard Flight 1720 based upon a contract it had entered into with Defendant Continental.
5
This contract, by
Incredibly, however, MedAire argues that it was not reasonably foreseeable that it would be “haled into a Texas court for a
tort
claim asserted by a third party based on its contractual relationship with Continental.”
See
Def.’s Reply at pg. 4 (emphasis in original). This argument is, simply and bluntly, ludicrous.
8
See Prejean,
2. Fair Play ■and Substantial Justice
The Court further concludes that the exercise of jurisdiction over MedAire
MedAire does not argue that the assertion of jurisdiction in this case would be unfair or unreasonable. 9 In the absence of such argument, the Court cannot and, in any event, would not, here find that jurisdiction should not be exercised. Texas clearly has an interest in adjudicating the case of a Plaintiff whose husband was allegedly injured while aboard a Continental Airlines flight outbound from Houston, Texas. MedAire could “reasonably anticipate” being haled into court in Texas, at least with regard to actions based upon its dispensation of medical advice. The Court rejects any notion that trial of this matter in Texas is a burden on a corporation such as MedAire, which chose to enter into this type of service contract with Continental. 10 Thus, although MedAire will undoubtedly experience some inconvenience by litigating this matter in Texas rather than in its home state, this inconvenience is mitigated by MedAire’s significant and long-standing business contacts in Texas. MedAire proffers no considerations that would “render jurisdiction unreasonable,” and thus it is hardly contrary to “traditional notions of fair play and substantial justice” to require MedAire to appear in a Texas forum.
After careful consideration of the totality of circumstances, the Court concludes that specific personal jurisdiction exists over MedAire in this action, and that the exercise of jurisdiction is consistent with Constitutional requirements. Accordingly, MedAire’s Motion to Dismiss for Lack of Personal Jurisdiction is hereby DENIED.
B. Motion to Dismiss or Transfer for Improper Venue
MedAire also, pursuant to Fed.R.Civ.P. 12(b)(3), challenges the propriety of venue in the Southern District of Texas. Me-dAire has quoted the relevant portions of the venue statute, 28 U.S.C. § 1391, and articulated that Plaintiff cannot establish venue under any one of these statutory provisions. MedAire fails, however, to cite any case authority by which it proposes the Court should analyze its manifestly conclusory arguments. This failure alone can constitute waiver.
See Cook v. Pride Petroleum Servs., Inc.
The Court’s subject matter jurisdiction in this matter is based solely upon diversity of citizenship. In such an action, 28 U.S.C. § 1391(a) provides that venue is proper in:
(1) a judicial district where any defendant resides, if all defendants reside in the same State, (2) a judicial district in which a substantial part of the events or omissions giving rise to the claim occurred, or a substantial part of property that is the subject of the action is situated, or (3) a judicial district in which any defendant is subject to personal jurisdiction at the time the action is commenced, if there is no district in which the action may otherwise be brought.
Plaintiff asserts that venue is proper under the “transactional” venue provision, 28 U.S.C. § 1391(a)(2), and also under the “fallback” provision, 28 U.S.C. § 1391(a)(3). On its own initiative, the Court also considers the propriety of “residential” venue under 28 U.S.C. § 1391(a)(1).
The Federal Rules of Civil Procedure authorize a court, upon suitable showing, to dismiss an action where venue in that court is improper.
See
Fed. R.Civ.P. 12(b)(3). Once a defendant raises the issue of proper venue by motion, the burden of proof is placed upon the plaintiff to sustain venue.
See Seariver Maritime Fin. Holdings, Inc. v. Pena,
1. Section 1391(a)(1) — Residential Venue
Section 1391(a)(1) provides for venue based upon the residence of the defendants. See 28 U.S.C. § 1391(a)(1). Under this venue provision, it is irrelevant where the events or omissions giving rise to the action occurred. However, section (a)(1) does have an important limitation; all defendants must reside in the same state. See id.
MedAire contends that venue is improper in the Southern District of Texas because it resides in Arizona and Defendant Continental resides in Texas. This argument fails to understand the important effect of 28 U.S.C. § 1391(c), which provides that a corporation is deemed to reside, in some district, in any state in which
This determination, however, does not yet establish the propriety of venue under section (a)(1). The Court must also ascertain whether all Defendants reside in Texas. See 28 U.S.C. § 1391(a)(1). Plaintiff has sued, in addition to Continental and MedAire, three individual persons. Two of these persons, Defendant Gordon Bethune (“Bethune”) and Defendant John Doe Pilot (“Pilot”), have answered. Neither Bethune nor Pilot has contested this Court’s personal jurisdiction or venue. Accordingly, the Court concludes that these two individuals reside in Texas. 12
Thus, the Court is left with one additional defendant, John Doe Physician, the Me-dAire doctor who provided the medical consultation for Continental and Mr. McCaskey on Flight 1720. Since the filing of Plaintiffs Complaint, this physician’s identity has become known, and a summons has been issued for a Dr. Douglas Dang (“Dang”). Dang, has not answered. The Court has no knowledge of where Dang resides, or whether he is subject to this Court’s personal jurisdiction.
The question thus becomes whether the Court must consider Defendant Dang in assessing whether all Defendants reside in Texas. The Court concludes that it need not.
Cf. Knowlton v. Allied Van Lines, Inc.,
The Eighth Circuit’s
Knowlton
opinion usefully illustrates the necessarily pragmatic approach courts should take when analyzing venue.
See
All Defendants who have answered are residents of Texas, and Continental clearly is a resident of the Southern District. Thus, venue is proper under section 1391(a)(1) as all Defendants reside in Texas, and at least one Defendant resides in this District. See 28 U.S.C. § 1391(a)(1), (c); 15 Charles Alan Wright et al, Federal Practice & Procedure, § 3802 (Supp.2000) (“All defendants must reside in the same state, but if they do, venue is proper in any district in which any defendant resides.”).
2. Section 1891(a)(2) — Transactional Venue
Section 1391(a)(2) sets forth the so-called “transactional” basis for venue. This provision enables a Plaintiff to bring suit in the place where a “substantial part of the events or omissions giving rise to the claim occurred.” 28 U.S.C. § 1391(a)(2) (emphasis added). MedAire confusingly argues that venue is not proper under this section because the events giving rise to Plaintiffs claims “were alleged delays in obtaining treatment ... during a flight from Houston, Texas to New Jersey.” Def.’s Reply at pg. 7. Seemingly, this all but admits that substantial events or omissions occurred in Texas. Plaintiff indeed takes this position. First, Plaintiff alleges that Continental’s misconduct began “shortly after take off.” From this, Plaintiff argues that a “substantial part of the events or omissions giving rise to the claim occurred” in the Southern District of Texas. 28 U.S.C. § 1391(a)(2).
If Continental’s conduct could be used to establish venue over MedAire, then Plaintiff would likely carry its burden under this section.
See
Discussion Section H.A.I.,
supra
(explaining how Plaintiff fails to sufficiently allege by complaint or affidavit that MedAire dispensed medical advice in Texas). However, venue under section (a)(2) must be established against
each
“claim” and against
each
defendant.
See
15 Charles Alan Wright et al., Federal Practice & Procedure, § 3808 (2d ed.1986). Thus, merely because transactional venue is proper here as to Continental does not make venue
ipso facto
proper over Me-dAire. Simply put, there is no pendant venue under 28 U.S.C. § 1391(a)(2).
See, e.g., Davis v. Advantage Int’l, Inc.,
Against MedAire, Plaintiff basically pleads negligence. Plaintiff must, therefore, establish venue under section (a)(2) by pleading that a substantial portion of MedAire’s allegedly negligent conduct giving rise to Plaintiffs claims against MedAire took place in the Southern District of Texas. Plaintiff has not made such an allegation. Thus, venue is not proper under section (a)(2) against MedAire.
3. Section 1391(a)(8) — Fallback Venue
The Court has already concluded that venue is proper under section 1391(a)(1) in this action. Because, however, it considered a seemingly novel question of law, out of an abundance of caution, the Court also addresses the propriety of venue under section 1391(a)(3). This section is a “fallback” provision, which a plaintiff may apply when venue cannot be established over the “action” under either (a)(1) or (a)(2).
13
See
28 U.S.C. § 1391(a)(3);
Doctor’s
As
socs., Inc. v. Stuart,
MedAire argues that venue is not proper in this District because the action could have otherwise been brought in Arizona. This argument is incorrect. Section (a)(3) requires that another district exist in which Plaintiff can establish both personal jurisdiction and venue over each party and each claim in the
entire
“action,” not just over a single claim versus Me-dAire.
See FS Photo, Inc. v. PictureVision, Inc.,
As Plaintiff points out, problems with personal jurisdiction can be readily foreseen over Continental in Arizona. These potential jurisdiction problems become even more obvious when one considers the individual Continental employees who have also been sued. Establishing valid venue in Arizona is also problematic. For example, the Continental employees, who have been sued, do not reside in Arizona, thus stymieing residential venue under (a)(1) for all defendants. See 28 U.S.C. § 1391(a)(1). These employees have also committed no act in Arizona that might create transactional venue under section (a)(2). See id. at § 1391(a)(2).
And while the burden rests on the plaintiff to establish a prima facie case of venue, the Court declines to require a plaintiff who seeks to utilize section (a)(3) to negate every single one of the hundreds of judicial districts as plausible venues. A defendant, such as MedAire, must posit a forum and articulate reasons why such is available, in terms of both venue and jurisdiction, in order to necessitate any response from a plaintiff in this regard. Me-dAire has failed to carry its initial burden, and Plaintiff has established a prima facie case of venue in this District under section (a)(3).
Thus, although the Court appreciates MedAire’s efforts to deal with these rela
C. Motion /or Discretionary Venue Transfer
MedAire also seeks to have the Court transfer this action to Arizona based on 28 U.S.C. § 1404(a). 28 U.S.C. § 1404(a) provides that “[f|or 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.” 28 U.S.C. § 1404(a). Under this statute, the party seeking the transfer of venue bears the burden of demonstrating that the Court should, in its sound discretion, transfer the action.
See Peteet v. Dow Chem. Co.,
When considering whether a transfer is warranted, the Court considers the following factors: the availability and convenience of witnesses and parties; the location of counsel; the location of pertinent books and records; the cost of obtaining attendance of witnesses and other trial expenses; the place of the alleged wrong; the possibility of delay and prejudice if transfer is granted; and the plaintiffs choice of forum.
See, e.g., Henderson v. AT & T Corp.,
MedAire maintains that this case should be transferred to Arizona principally because: (1) witnesses reside in Arizona; (2) its counsel has its office in Arizona; (3) documents relevant to the dispute are located in Arizona; and (4) the events giving rise to this lawsuit allegedly did not occur in Texas. Plaintiff argues in response that: (1) MedAire has not established that the action might have been brought in Arizona; (2) MedAire has not carried its burden of overcoming the traditional deference accorded a plaintiffs choice of forum; and (3) a preponderance of witnesses are located within this Court’s judicial cognizance.
1. Availability and Convenience of Witnesses
The Court has previously stated that the convenience of key witnesses is the most important factor in a motion to transfer venue.
See Continental Airlines,
2. Location of Parties
When determining the relative conveniences of transfer, the Court also considers the residences of the parties in the action. While Plaintiff apparently does not live in this District, at least one Defendant does reside here. Specifically, Continental, which has not joined in this Motion to Transfer Venue, is a colossus in the economy of this District and will certainly not be heard to complain about venue in this Court.
See Carlile v. Continental Airlines, Inc.,
3. Location of Counsel
Plaintiff and several Defendants have retained counsel located in the Southern District of Texas. MedAire’s counsel, however, has its office in Phoenix, Arizona. Although this factor is not of primary importance, the Court does “give some weight to location of counsel if the plaintiff chooses local counsel to bring the suit.”
Dupre,
4. Location of Books and Records
MedAire does not contend that the location of books and records is of paramount importance in this case. The Court agrees.
See Dupre,
5. Cost of Trial
Trial of a lawsuit is an expensive exercise. It is rare that the forum in which a case is litigated is the most convenient or the least costly for all parties involved. Although the burden rests with MedAire, it proffers no specific information regarding the relative expenses and costs associated with the trial of this case in Galveston vis-a-vis Arizona. And again, as noted in the discussion of other factors, common sense makes it clear that transferring this lawsuit would only shift costs between Defendants as opposed to ameliorating total expenses. The Court, therefore, concludes that this factor does not support transfer.
MedAire presses that its negligence, if any, began in Arizona and had its effect on Mr. McCaskey while the aircraft was over Mississippi, not over Texas as urged by Plaintiff. The Court notes that although the place of the alleged wrong is an important factor to consider when deciding whether to transfer venue, it is not the sole factor.
See Dupre,
7. Possibility of Delay and Plaintiffs Choice of Forum
Plaintiffs choice to litigate this case in the Galveston Division of the Southern District of Texas is entitled to great deference.
See United Sonics,
The Court, moreover, notes that a transfer out of this Division may well cause all parties to lose the benefit of this Court’s short trial track.
See United Sonics,
After careful consideration of all the specific facts and relevant factors in this case, the Court concludes that MedAire, despite advancing several cogent arguments, has offered no compelling reasons for transfer to the United States District Court for the District of Arizona. Moreover, for much the same reasons seen in the Court’s above discussion of proper venue, Arizona is not a place where this action “might have been brought.”
See
Discussion Section II.B.3,
supra; Liaw Su Teng,
Thus, the Court declines to disturb the forum chosen by Plaintiff and to introduce the likelihood of delay inherent in any
III. CONCLUSION
As set forth in detail above, the Court ORDERS that: MedAire’s Motion to Dismiss for Lack of Personal Jurisdiction is DENIED; MedAire’s Motion to Dismiss or Transfer for Improper Venue is DENIED; and MedAire’s Discretionary Motion to Transfer Venue is DENIED.
Having DENIED MedAire’s various motions, the Court briefly notes that in no way is it making a determination about the merits of this action. The nature of Me-dAire’s business presents a somewhat novel question, especially with regard to personal jurisdiction, and MedAire’s efforts to obtain a dismissal or transfer are well taken. At this stage, the Court simply urges MedAire, as it does all the litigants in this action, to strongly consider a fair, amicable resolution of this matter. And of course, if the evidence ultimately indicates that MedAire has done nothing wrong, the Court will be pleased to entertain any motion for dispositive relief MedAire might deem appropriate.
IT IS SO ORDERED.
Notes
. Plaintiff's Complaint further alleges that Continental “consulted [with MedAire] during the medical emergency which resulted in Ralph McCaskey’s death.” PL's 1st Am. Compl. at para. 6. Moreover, "Defendant Me-dAire’s failure to train its employees and/or its failure to implement and/or comply with proper protocols caused a wholly inadequate assessment of the situation and the seriousness of Ralph McCaskey’s condition, the result of which was his death.” Pl.’s 1st Am. Compl. at para. 58. And additionally, that "[ajfter the ‘phone call' made by Defendant Airlines to Defendants MedAire and John Doe Physician, Mary McCaskey learned the flight would continue uninterrupted.” Pl.’s 1st Am. Compl. at para. 62.
. Plaintiff could have supplemented the allegations seen in her Complaint with affidavits or discovery materials, which could have provided the factual basis to make this argument,” but she has failed to do so. In rejecting Plaintiff's location argument, the Court is not suggesting that the aircraft was not in Texas when MedAire became involved, but simply pointing out the lack of information before it from which to conclude, even on a prima facie basis, that the plane was in the Texas forum. Perhaps at this early stage of the proceedings, Plaintiff simply has no information regarding the aircraft's location. Mere conjecture, however, will not enable it to survive this Motion to Dismiss. Strangely, Plaintiff does attach a newspaper article and also several letters from Defendant Continental, which is not challenging jurisdiction. These items are not helpful.
.MedAire attaches a "MedLink Patch Form.” The MedLink Patch Form appears to be a log of basic information regarding the flight, the patient and the treatment given. MedAire argues that this document indicates that Flight 1720 was over Mississippi when Me-dAire’s physician communicated with the
. MedAire's counsel also revealed at the Courts recent Rule 16 Scheduling Conference that MedAire has now applied for a license to do business in Texas. While conduct occurring after the filing of this action does not bear on the Court’s analysis, the Court does appreciate counsel's candor in this regard.
. MedAire argues that the contract with Continental contains a forum selection clause providing for venue in Arizona. MedAire does not indicate by citation what portion of the contract has this effect, but the Court assumes that MedAire relies upon Section 16.6, which clearly provides only for the application of Arizona law. This is not a forum
.MedAire’s performance under this contract began on March 1, 1992 and appears to have continued uninterrupted until the present. Houston, Texas is Continental’s home, and the location of one of its three "hub” airports. Literally hundreds of Continental flights takeoff and land at Houston Intercontinental Airport on a daily basis.
. MedAire also has contractual relationships with dozens of other airlines. Many of these airlines operate in Texas, including: America West Airlines, Continental Express, Northwest Airlines, Southwest Airlines (another Texas-based airline), Trans World Airways, United Airlines and U.S. Airways. Again, these contracts would by their very nature entail Me-dAire dispensing its service into Texas.
. MedAire also attempts to downplay its contract with Continental, and thus its Texas’ connection, by referring to Continental as "a Delaware Corporation with an office in Texas.” Def.'s Reply at pg. 3 (emphasis added); accord Def.'s Mot. at pg. 5. Houston Intercontinental Airport is á gargantuan complex that Continental dominates. Calling Houston Intercontinental Airport an office in Texas is like calling Buckingham Palace, a flat in London. This sort of advocacy is an affront to the common sense of this or any Court and an affirmative disservice to the judicial system as a whole.
. MedAire’s Motion to Dismiss focuses only on the minimum contacts portion of the Court’s requisite analysis.
. As mentioned above, MedAire also allegedly has similar agreements with several other airlines operating in Texas.
. If the corporation, such as MedAire, were used as the sole venue basis in the forum district, the court would also be required to ensure that the corporation’s contacts with the district "would be sufficient to subject it to personal jurisdiction if that district were a separate State.” 28 U.S.C. § 1391(c). In this matter, Continental resides in the Southern District. Therefore, it is irrelevant in which specific Texas district MedAire is deemed to reside, although MedAire’s contacts would seem to make the Southern District appropriate in any event.
. For individual persons, "residence” means domicile. See 15 Charles Alan Wright et al., Federal Practice & Procedure, § 3805 (2d ed.1986).
. One recognized use for this provision is when a substantial part of the claim did not arise in the United States, and neither do all defendants reside in the same state. See 15 Charles Alan Wright et al., Federal Practice & Procedure, § 3802 (Supp.2000).
. The
Liaw Su Teng
opinion recognizes that in some instances it may be proper to sever and transfer a portion of a lawsuit when personal jurisdiction and venue cannot be established over all defendants in the transferee court.
See
