RENATA SHILOAH, on behalf of herself and all others similarly situated v. GEICO INDEMNITY COMPANY
Case 6:24-cv-06447-EAW-CDH
UNITED STATES DISTRICT COURT WESTERN DISTRICT OF NEW YORK
March 11, 2025
COLLEEN D. HOLLAND, United States Magistrate Judge
Document 39
DECISION AND ORDER
INTRODUCTION
Plaintiff Renata Shiloah (“Plaintiff“) brings this putative class action suit against defendant GEICO Indemnity Company (“Defendant” or “GEICO“), alleging breach of contract. (Dkt. 1). Plaintiff claims that Defendant has “systematically underpaid not just Plaintiff but thousands of other putative Class members” by failing to pay “Actual Cash Value” or “ACV” for total loss vehicles insured with comprehensive and collision coverage. (Id. at ¶¶ 1-3).
Defendant has moved to transfer venue to the United States District Court for the Eastern District of New York pursuant to
BACKGROUND
I. Factual Background
Plaintiff is a citizen of the state of New York and resides in Nassau County, which is within the geographic boundaries of the Eastern District of New York. (See
On or about December 28, 2018, Plaintiff‘s insured vehicle—which she leased—was involved in an accident and determined to be a total loss. (Id. at ¶¶ 19, 21). After Plaintiff filed a claim, Defendant offered Plaintiff an ACV payment that did not include New York State sales taxes, requiring Plaintiff to pay sales tax to replace her total loss vehicle (Id. at ¶¶ 24-26). According to Plaintiff, “[s]ales tax is necessary and a mandatory vehicle replacement cost that must be paid to replace any vehicle in the State of New York,” including a leased vehicle. (Id. at ¶¶ 27-28). Consequently, Plaintiff alleges Defendant breached the Policy. (Id. at ¶¶ 32, 61). Plaintiff brings this action individually and as a putative class action on the grounds that other GEICO customers who suffered total losses to their vehicles were similarly underpaid in settlement of their claims. (Id. at ¶¶ 6, 33).
II. Procedural Background
Plaintiff commenced this action on July 17, 2024. (Dkt. 1). Defendant moved to dismiss the case on August 7, 2024 (Dkt. 4), and that motion remains pending before the Hon. Elizabeth A. Wolford, the presiding District Judge. Defendant subsequently moved to compel appraisal and to stay the matter pending appraisal (Dkt. 19), and that motion is currently pending before the undersigned. Both the
On January 23, 2025, Defendant moved pursuant to
Judge Wolford has referred this matter to the undersigned for all pretrial matters, excluding dispositive motions. (Dkt. 29).
DISCUSSION
I. Scope of Magistrate Judge Authority
Federal courts, including courts within this Circuit, “have differed as to whether a motion to change venue is dispositive or non-dispositive in nature.” Fritz v. Realpage, Inc., No. 20-CV-7055-CJS-MJP, 2021 WL 3700434, at *1 (W.D.N.Y. Aug. 20, 2021) (collecting cases). Motions to transfer venue are not expressly designated
“Most recent district court opinions in the Second Circuit conclude that motions for a change of venue are non-dispositive and therefore ‘within the pretrial reference authority of magistrate judges.‘” Fritz, 2021 WL 3700434, at *1 (quoting Skolnick v. Wainer, No. CV 2013-4694, 2013 WL 5329112, at *1 n.1 (E.D.N.Y. Sept. 20, 2013)). The Court agrees with this view.
In determining whether a motion is “dispositive,” the Court must analyze “the practical effect of the challenged action on the instant litigation.” Williams, 527 F.3d at 265. (citation omitted). For instance, the Second Circuit has held that a motion to remand a case to state court for lack of subject matter jurisdiction is dispositive, because it “determine[s] the fundamental question of whether a case [can] proceed in a federal court.” Id. (citation omitted and first alteration in original). By contrast, a motion to transfer venue does not divest the federal judiciary of jurisdiction, but “merely moves the action from one district to another[.]” D‘Amato v. ECHL, Inc., No. 13-cv-646S, 2015 WL 2151825, at *3 (W.D.N.Y. May 7, 2015). “Because granting or denying a motion to transfer venue does not divest the federal judiciary of jurisdiction, this Court will follow the majority view within the Second Circuit, determining that this motion is non-dispositive.” Kimble v. Opteon Appraisal, Inc., No. 23-CV-6399-FPG-MJP, 2024 WL 4248968, at *3 (W.D.N.Y. Sept. 20, 2024)
II. Transfer to the Eastern District of New York is not Warranted
Motions to transfer venue are governed by
“District courts have broad discretion in making determinations of convenience under Section 1404(a) and notions of convenience and fairness are considered on a case-by-case basis.” D.H. Blair & Co., Inc. v. Gottdiener, 462 F.3d 95, 106 (2d Cir. 2006). In making its determination, the Court considers the following non-exhaustive list of factors: (1) “the plaintiff‘s choice of forum,” (2) “the convenience of witnesses,” (3) “the location of relevant documents and relative ease of access to sources of proof,” (4) “the convenience of parties,” (5) “the locus of operative facts,” (6) “the availability of process to compel the attendance of unwilling witnesses,” and (7) “the relative means of the parties.” N.Y. Marine & Gen. Ins. Co. v. Lafarge N. Am., Inc., 599 F.3d 102, 112 (2d Cir. 2010) (quoting D.H. Blair, 462 F.3d at 106-07); see also Winner v. Tryko Partners, LLC, 333 F. Supp. 3d 250, 266 (W.D.N.Y. 2018) (noting additional factors including, “the forum‘s familiarity with governing law, . . . the
As there is no dispute that this action could have been brought in the Eastern District of New York (see Dkt. 34 at 14), the Court moves directly to its assessment of the factors relevant to the balance of convenience and the interests of justice.
A. Plaintiff‘s Choice of Forum
Defendant argues that Plaintiff‘s choice of forum is entitled to little weight because this action does not have sufficient ties to this District. (Dkt. 26 at 4). In response, Plaintiff contends that a related putative class action lawsuit filed in this District, Marcelletti, involves “the exact same form policy contract . . .[and] the same breach of contract claim.” (Dkt. 34 at 7). Plaintiff states that these facts are “precisely why [she] chose to file in this forum and relate the cases.” (Id.).1
Although a plaintiff‘s choice of forum is generally entitled to substantial deference in the transfer analysis, in class action cases, it is a less significant consideration. See In re Warrick, 70 F.3d 736, 741 n. 1 (2d Cir. 1995); IBJ Schroeder Bank & Trust Co. v. Mellon Bank, N.A., 730 F. Supp. 1278, 1282 (S.D.N.Y. 1990).
Here, it is undisputed that Plaintiff does not reside in this District and that the operative facts have no more connection to this District than to the Eastern District of New York. Plaintiff also seeks to represent a putative class of similarly situated GEICO insureds located across the New York State.2 On the other hand, and as discussed further below, the Court agrees with Plaintiff that the pendency of the related Marcelletti action was a legitimate basis for her choice of forum. Under the circumstances, the Court finds that Plaintiff‘s choice of forum is entitled to some weight, but not a substantial amount.
B. Convenience of Witnesses
“Convenience of the witnesses is perhaps the most important consideration in determining whether transfer is appropriate.” Adirondack Transit Lines, Inc. v. Greyhound Lines, Inc., No. 1:15-CV-01227 (LEK)(CFH), 2016 WL 5415772, at *5 (N.D.N.Y. Sept. 28, 2016). “To carry its burden on this factor, a defendant must provide the Court with a list of probable witnesses who will be inconvenienced by the current forum and a general statement of what the witnesses’ testimony will cover.” Travelers Prop. Cas. Co. of Am. v. Ocean Reef Charters LLC, 324 F. Supp. 3d 366, 375 (W.D.N.Y. 2018) (quotation omitted). Further, “[t]he convenience of non-party witnesses is accorded more weight than that of party witnesses.” Id. (quotation omitted).
Defendant‘s motion papers identify Gary Bellesheim as the Auto Damage Adjuster employed by Defendant who adjusted Plaintiff‘s total loss claim. (See Dkt. 26 at 4-5; Dkt. 26-1 at ¶ 3). However, Defendant‘s papers do not clearly identify Mr. Bellesheim as a probable witness—instead, Defendant repeatedly refers to Mr. Bellesheim as a “relevant witness.”3 (See Dkt. 36 at 6-7). Defendant does not state that it intends to call Mr. Bellesheim as a witness, and Plaintiff has disavowed any intent to do so. (See Dkt. 34 at 16-17). The record before the Court does not establish
Moreover, Defendant has not provided an adequate description of Mr. Bellesheim‘s anticipated testimony. Defendant states in vague terms that Mr. Bellesheim adjusted Plaintiff‘s total loss claim, “communicat[ing] with Plaintiff throughout that process[.]” (Dkt. 36 at 6). Defendant then argues that Mr. Bellesheim might have relevant testimony in this case, because “if GEICO Indemnity paid $10,000 to settle a claim for the total loss of a leased vehicle, but the value of that vehicle was actually only $9,000, then any sales tax allegedly owed has already effectively been paid, and then some, meaning there is no breach, no injury, and thus no claim.” (Dkt. 36 at 6-7). Defendant fails to explain what information Mr. Bellesheim possesses that is relevant to this potential factual dispute, making only general references to “[t]he facts surrounding the adjustment and settlement of Plaintiff‘s total loss claim.” (Id. at 7).
“Vague generalizations and failure to clearly specify the key witnesses to be called, along with a statement concerning the nature of their testimony, are an insufficient basis upon which to grant a change of venue under
C. Location of Relevant Documents and Ease of Access to Proof
“The location of documents is ‘not a compelling consideration when records are easily portable.‘” Flowserve Corp. v. BMCE, Inc., No. 05 Civ. 8075 (WHP), 2006 WL 2927176, at *4 (S.D.N.Y. Oct. 12, 2006) (quoting Astor Holdings, Inc. v. Roski, No. 01 Civ. 1905 (GEL), 2002 WL 72936, at *12 (S.D.N.Y. Jan. 17, 2002)); see also Travelers Prop. Cas. Co., 324 F. Supp. 3d at 379 (“The location of relevant documents is largely a neutral factor in today‘s world of faxing, scanning, and emailing documents.“). Here, the parties agree this factor has a neutral impact on the transfer analysis. (See Dkt. 26 at 7; Dkt. 34 at 31). The Court finds that this factor neither supports nor disfavors transfer.
D. Convenience of Parties
The Court next considers the convenience of the parties. Defendant‘s argument that the convenience of the parties favors transfer rests almost exclusively on the notion that Plaintiff would be better served litigating her case in the Eastern District of New York, where she resides. (See Dkt. 26 at 6; Dkt. 36 at 5, 7-8). However, Plaintiff chose this forum herself and represents that it is not inconvenient to her to litigate here. (See Dkt. 34 at 20). Considering “the conveniences of modern air travel,” Travelers Prop. Cas. Co. of Am., 324 F. Supp. 3d at 378, the Court does not
Defendant also proffers no argument that it would be more convenient for it to litigate this case in the Eastern District of New York, rendering this factor neutral in the Court‘s analysis.4 See Liberty Mut. Ins. Co. v. Fairbanks Co., 17 F. Supp. 3d 385, 399 (S.D.N.Y. 2014) (explaining that this factor generally “favors transfer when transfer would increase convenience to the moving party“); Hernandez v. Graebel Van Lines, 761 F. Supp. 983, 988 (E.D.N.Y. 1991) (finding that this factor does not favor transfer when a transfer provides no difference in convenience for the moving party).
E. Locus of Operative Facts
“The locus of operative facts is a primary factor in determining whether to transfer venue.” Am. Steamship Owners Mut. Prot. & Indem. Ass‘n, Inc. v. Lafarge N. Am., Inc., 474 F. Supp. 2d 474, 485 (S.D.N.Y. 2007) (quotation omitted), aff‘d sub nom New York Marine & Gen. Ins. Co., 599 F.3d at 102. “To determine where the locus of operative facts lies, courts look to the site of events from which the claim arises.” Travelers Prop. Cas. Co. of Am., 324 F. Supp. 3d at 379 (quotations omitted).
In a putative class action, where the individual named plaintiff‘s harm occurred “is of little importance in determining the locus of operative facts.” Craig v. Am. Tuna, Inc., No. 21-CV-9125 AJN KHP, 2022 WL 989763, at *4 (S.D.N.Y. Apr. 1, 2022); see also Travelers Prop. Cas. Co. of Am., 324 F. Supp. 3d at 381 (weighing this factor less heavily where “the locus of operative facts is split amongst several forums“); Hicks v. T.L. Cannon Corp., No. 12-CV-6517T, 2013 WL 2423782, at *5 (W.D.N.Y. Jun. 4, 2013) (holding “there [was] no single locus of operative facts in [the] action [because] Plaintiffs purport[ed] to represent hundreds of tipped employees who worked in different restaurant[s] throughout the state.“).
Here, Defendant has not demonstrated that the locus of operative facts is in the Eastern District of New York. For example, Defendant does not contend that its corporate policies were formulated in the Eastern District of New York. The Court accordingly finds this factor neutral to the transfer analysis.
F. Availability of Compulsory Process
The availability of compulsory process factor “requires a consideration of the Court‘s power to compel attendance of unwilling witnesses, as a district court only can subpoena witnesses within the district or within 100 miles of the [court].” Fuji Photo Film Co. v. Lexar Media, Inc., 415 F. Supp. 2d 370, 375 (S.D.N.Y. 2006); see
The parties agree this factor has a neutral impact on the transfer analysis in this case. (See Dkt. 26 at 7; Dkt. 34 at 31). The Court finds this factor neither supports nor disfavors transfer. See Stewart v. Stewart, No. 1:18-CV-201, 2019 WL 13235434 at *9 (W.D.N.Y. 2019) (noting that availability-of-process factor “concerns the availability of process to compel unwilling witnesses“)
G. Relative Means of the Parties
Because Plaintiff seeks to represent thousands of individuals holding insurance policies with Defendant, the relative means of the parties do not favor or
H. Familiarity with the Governing Law
“The forum‘s familiarity with the governing law is neutral in the Court‘s analysis. Both the districts frequently apply New York Law[.]” Cameron v. Prosegur Servs. Grp., Inc., No. 23-CV-8789 (DLI)(TAM), 2024 WL 4145742, at *2 (E.D.N.Y. Sept. 11, 2024).
I. Judicial Economy and the Interests of Justice
For all these reasons, the Court finds that Plaintiff‘s choice of forum weighs slightly against transfer and that the remaining factors are neutral. The Court further finds that the interests of justice and judicial economy strongly disfavor the transfer of this case, considering there is a related case pending in this District—Marcelletti—involving an essentially identical legal claim, a related defendant, the same counsel for both Plaintiff and Defendant, and a significant overlap in discovery. See Cont‘l Grain Co. v. The FBL-585, 364 U.S. 19, 26 (1960) (“To permit a situation in which two cases involving precisely the same issues are simultaneously pending in different District Courts leads to the wastefulness of time, energy and money that
The Court is unpersuaded by Defendant‘s allegations of forum shopping on Plaintiff‘s part. (Dkt. 26 at 6-7).5 “Forum shopping occurs when a litigant selects a forum with only a slight connection to the factual circumstances of his action, or where forum shopping alone motivated the choice.” Everest Capital Ltd. v. Everest Funds Mgmt., L.L.C., 178 F. Supp. 2d 459, 470 (S.D.N.Y. 2002). A desire to have “related actions . . . heard in a single forum does not constitute impermissible forum shopping[.]” Self v. Equinox Holdings, Inc., No. CV1404241MMMAJWX, 2015 WL 13298146, at *8 (C.D. Cal. Jan. 5, 2015) (quotation omitted). To the contrary, federal courts have found that filing suit in a district other than one where a related matter is pending “suggests the possibility of forum shopping.” W. Watersheds Project v. Nat‘l Park Serv., No. 1:21-CV-00219-DCN, 2021 WL 5828028, at *5 (D. Idaho Dec. 8, 2021).
Plaintiff‘s papers indicate she selected this forum because a related case, Marcelletti, involving “the exact same form policy contract . . .[,] the same breach of contract claim[,]” and “the same defense counsel” is pending in this District. (Dkt. 34 at 7, 11). Defendant does not cite any conflicting precedent between this District and
For all these reasons, the Court finds that Defendant has not shown by clear and convincing evidence that the balance of convenience and the interests of justice weigh in favor of transfer to the Eastern District of New York. Defendant‘s motion to transfer venue is accordingly denied.
CONCLUSION
For the reasons set forth above, the Court denies Defendant‘s motion to transfer venue. (Dkt. 25). The other pending motions in this matter will be decided in due course.
SO ORDERED.
COLLEEN D. HOLLAND
United States Magistrate Judge
Dated: Rochester, New York
March 11, 2025
