Lead Opinion
SME Rаcks, Inc. (“SME Racks”) and Valtec Information Systems, Inc. (“Val-tec”), two Florida corporations, and Rafael A. Castro (“Castro”), a Florida citizen,
BACKGROUND
Acting in his capacity as owner of Val-tec, Castro attended an industry exhibition in Las Vegas, Nevada, where Sistеmas Mecánicos was promoting its products. Negotiations between Castro and Sistemas Mecánicos began in Las Vegas, and Siste-mas Mecánicos followed up by twice sending agents to Castro’s Miami office to negotiate a business plan. Castro then went to Spain twice to further negotiate and finalize their international agreement. The contract was executed in Spain and provided that “[b]oth parties submit and refer themselves to Spanish law and to settle any disputes that may arise between them as a result of this contract.”
The products were manufactured in Spain and shipped to Florida, and payment was sent. When the goods were found to be defective, Sistemas Mecánicos sent a reрlacement shipment. Castro claimed that this shipment also contained defective products. Castro consequently filed a diversity action in federal court alleging numerous contract and tort claims.
STANDARD OF REVIEW
A district court’s forum non con-veniens determination “may be reversed only when there has been a clear abuse of discretion; where the court has considered all relevant public and private interest factors, and where its balancing of these factors is reasonable, its decision deserves substantial deference.” Piper Aircraft Co. v. Reyno,
DISCUSSION
In considering a motion for dismissal on grounds of forum non conve-niens,
the trial judge must consider all relevant factors of private interest, weighing in the balance a strong presumption against disturbing plaintiffs’ initial forum choice. If the trial judge finds this balance of private interests to be in equipoise or near equipoise, he must then determine whether or not factors of public interest tip the balance in favor of a trial in a foreign forum.5
Id. at 1307.
The Supreme Court set out in detail in Gulf Oil Corporation v. Gilbert,
An interest to be considered, and the one likely to be most pressed, is the private interest of the litigant. Important considerations are the relative ease of access to sources of proof; availability of compulsory process for attendance of unwilling, and the cost of obtaining attendance of willing, witnesses; pоssibility of view of the premises, if view would be appropriate to the action; and all other practical problems that make trial of a case easy, expeditious and inexpensive. There may also be questions as to the enforceability of a judgment if one is obtained. The court will weigh relative advantages and obstacles to fair trial. It is often said that the plaintiff may not, by choice of an inconvenient forum, “vex,” “harass,” or “oppress” the defendant by inflicting upon him expense or trouble not necessary to his own right to pursue his remedy. But unless the bal-*1101 anee is strongly in favor of the defendant, the plaintiff’s choice of forum should rarely be disturbed.
Factors of public interest also have a place in applying the doctrine. Administrative difficulties follow for courts when litigation is piled up in congested centers instead of being handled at its origin. Jury duty is a burden that ought not to be imposed upon the people of a community which has no relation to the litigation. In cases which touch the affairs of many persons, there is reason for holding the trial in their view and reach rather than in remote parts of the country where they can learn of it by report only. There is a local interest in having localized controversies decided at home. There is an appropriateness, too, in having the trial of a diversity case in a forum that is at home with the state law that must govern the case, rather than having a court in some оther forum untangle problems in conflict of laws, and in law foreign to itself.
A Private Interest Factors
As the Gilbert Court made clear, with regard to the weighing of the private interests, the plaintiffs’ choice of forum should rarely be disturbed “unless the balance is strongly in favor of the defendant.” Id. at 508,
While the Supreme Court has been cleаr that “dismissal should not be automatically barred when a [domestic] plaintiff has filed suit in his home forum,” Piper Aircraft Co.
While the district court referenced the presumption in favor of plaintiffs’ choice of forum in the introductory portion of its discussion, the district court failed to articulate the relevant standards and failed to apply any presumption in its analysis. First, the district court failed to recognize our rule that “positive evidence of unusually extreme circumstances” must be present and that the court must be “thoroughly convinced that material injustice is manifest” before ousting a domestic plaintiff from this country’s courts. La Seguridad,
Second, even if we were to assume that the district court correctly understood the proper legal standard, the district court never mentions the presumption in favor of the plaintiffs or incorporates the presumption into its calculus once it actually engages in weighing the private interests. Indeed, the Report makes clеar that the district court entirely failed to consider the presumption in favor of the plaintiffs’ choice of forum in its analysis at all.
After establishing that an adequate and available forum existed in Spanish courts, the district court opinion turned to balancing the private interest factors. In determining that the private convenience factors were at or near equipoise, the district court focused only on factors related to the practical problems that make “trial of a case easy, expeditious, and inexpensive,” such as where the evidence and witnesses are located. Applying these factors, both fora were found to be equally inconvenient. In full, this portion of the Report reads as follows (for ease of reference, we have numbered the paragraphs):
[1] Relevant private factors include the relative ease of access to sources of proof, ability to obtain witnesses, and all other practical problems that make trial of a case easy, expeditious, and inexpensive.
[2] Witnesses who examined the merchandise when it was unloaded in Florida are located in Florida. Additionally, the allegedly defective products were shipped to Florida and are currently located in Florida, some of the negotiations took place in Florida, and Defendants’ representatives traveled to Florida on at least one occasion tо negotiate.
[3] However, weighing in favor of transfer to Spain is the fact that witnesses who shipped and manufactured the merchandise, as well as Defendants, are located in Spain. Additionally, in light of the fact that Plaintiffs alleged, in part, that the merchandise was defectively manufactured, it may be necessary to examine Defendants’ manufacturing facilities, which are located in Spain. Finally, the documentary evidence is located in both Florida and Spain, and some of it is in Spanish.
[4] The Court concludes that the private convenience factors are at or near equipoise. If the Court only considered only [sic] those factors, without looking at the public interest factors, then the Court would cоnclude that trial in either forum — this Court or Spain — would be equally inconvenient. However, because the private interest factors are at or near equipoise, the Court must consider the public interest factors.
Report at 3-4 (internal citation and punctuation omitted).
This section of the Report follows the standard format of stating a test, applying the test to the circumstances of the case,
Nor is there any basis to speculate that the district court simply failed to mention the presumption in its application section, but nevertheless considered the presumption and determined that the presumption was defeated.
This theory simply cannot be reconciled with the district court’s explication of its own logic — the reason the private interest factors were, in its view, at or near equipoise was because “either forum — this Court or Spain — would be equally inconvenient.” In light of this language, the only way the presumption could have been applied is to read the district court’s pronounсement that both forums are “equally inconvenient” as short hand for: “the Spanish forum is more convenient than this forum, but when weighed against the presumption in favor of the plaintiffs’ choice of forum, the two can be understood as equally inconvenient.” While there is a deferential standard of review, we need not engage in such conjecture. The district court simply found that the convenience factors were about equal and failed to weigh the presumption in favor of the plaintiffs into the balance. This failure is a clear abuse of discretion. See La Segu-ridad,
Because reversal and remand are appropriate solely basеd upon the district court’s failure to balance all the relevant private interest factors, we need not determine whether the district court again abused its discretion in weighing the public interest factors. Nevertheless, we feel it useful to express some concern that in weighing the public interest factors the district court failed to consider the United States’ strong interests in providing a forum for this litigation.
“Relevant public interest factors include the sovereigns’ interests in deciding the dispute.” Republic of Panama, v. BCCI Holdings (Luxembourg) S.A.,
These factors distinguish this case from other cases where we found that the public interest factors weighed in favor of dismissal because of the application of foreign law.
CONCLUSION
We conclude that the district court clearly abused its discretion in dismissing this case and therefore REVERSE and REMAND for further proceedings consistent with this opinion.
Notes
. Appellants will be referred to collectively as "SME Racks.”
. The district court adopted in whole the Report and Recommendation of the magistrate judge. For convenience, we refer to the Report as if it were the district court’s opinion.
.In its Second Amended Complaint, SME Racks has asserted claims for: fraud in the inducement; rescission of purchase agreement; promissory estoppel; quasi-contract/quantum meruit; unjust enrichment; negligent misrepresentation; negligent design, manufacture, and inspection; negligent assembly, inspection, packing, and storage; breach of oral agreement; breach of express warranty; breach of duty of good faith and fair dealing.
. That Spanish courts provide an independent and adequate alternative forum is not at issue in this appeal.
. We have clarified that although "private factors are generally considered more important” than public ones, courts should consider both public and private factors "in all cases.” Leon v. Millon Air, Inc.,
. In full, the Supreme Court stated that:
In Koster, we stated that "[i]n any balancing of conveniences, a real showing of convenience by a plaintiff who has sued in his home forum will normally outweigh the inconvenience the defendant may have shown.” As the District Court correctly noted in its opinion, the lower federal courts have routinely given less weight to a foreign plaintiffs choice of forum. A citizen's forum choice should not be given dispositive wеight, however. Citizens or residents deserve somewhat more deference than foreign plaintiffs, but dismissal should not be automatically barred when a plaintiff has filed suit in his home forum. As always, if the balance of conveniences suggests that trial in the chosen forum would be unnecessarily burdensome for the defendant or the court, dismissal is proper.
Piper Aircraft Co.,
. In Bonner v. City of Prichard,
. See Dissent at 1107 ("|T]he only sensible way to understand the district court's conclusion that the private interests were at or near equipoise is that the strong presumption in favor of domestic plaintiffs was partly defeated, not that it was ignored.”).
. Judge Black’s dissent that suggests our interpretation
opens a Pandоra's Box of problems regarding the review of a district court's forum non conveniens decision. Suppose 51 percent of the evidence were in Spain, and 49 percent were in Florida — would the strong*1104 presumption in favor of domestic plaintiffs tilt the balance in favor of retaining jurisdiction? What about 52 percent? 55 percent? 60 percent? In the forum non conve-niens scale, precisely how heavily does the strong presumption in favor of domestic plaintiffs' forum choices weigh?
Dissent at 1107. In this case, the district court made clear that it found both fora "equally inconvenient.” Thus, if any presumption applies at all, it must apply in this situation. Whether a district court would abuse its discretion in determining that 51 percent, 52 percent, or 55 percent of the evidence is sufficient to constitute "positive evidence of unusually extreme circumstances” warranting dismissal is simply not before us. La Seguridad,
. All but one of our cases that the district court relies upon in supporting its assertion that the application of foreign law weighs heavily in favor of dismissal involve only foreign plaintiffs. See Ford v. Brown,
The only case relied upon by the district court in which plaintiffs were not all foreign was Satz,
. See Burt,
Dissenting Opinion
dissenting:
I respectfully dissent from today’s decision for two overarching reasons. First, the majority’s private interest analysis does not accord sufficient deference to the district court’s decision.
I. FORUM NON CONVENIENS IN GENERAL
Generally speaking, three Supreme Court cases provide the foundation for analyzing forum non conveniens issues. Gulf Oil Corp. v. Gilbert,
A citizen’s forum choice should not be given dispositive weight, however. Citizens or residents deserve somewhat more deference than foreign plaintiffs, but dismissal should not be automatically barred when a plaintiff has filed suit in his home forum. As always, if the balanсe of conveniences suggests that trial in the chosen forum would be unnecessarily burdensome for the defendant or the court, dismissal is proper.
Id. (emphasis added and citations omitted).
With this foundation in mind, we have previously clarified that a district court must merely do three things before concluding a case should be dismissed under forum non conveniens. C.A. La Seguridad v. Transytur Line,
II. THE MAJORITY’S PRIVATE INTEREST ANALYSIS
Despite the limited nature of our review, the majority finds the district court’s analysis of the litigants’ private interests constituted a clear abuse of discretion. Respectfully, I disagree.
A. Abuse of Discretion Review
The Supreme Court has strenuously admonished appellate courts that they may reverse a district court’s forum non conve-niens decision only when there has been a “clear abuse of discretion.” Piper Aircraft,
The majority has fallen into this trap. The crux of today’s holding is that the district court failed to apply the presumption in favor of domestic plaintiffs’ forum choice. Unfortunately, the majority is able to justify this conclusion only because it does not limit its review for error to a clear abuse of discretion. Typically, when we ask whether a district court abused its discretion, we ask whether the district court applied the relevant law to the relevant facts. For example, even though we might disagree with the district court’s decision, we generally find a district court
B. The District Court’s Recognition and Application of the Strong Presumption
There can be no question the district court wаs aware of and applied the strong presumption in favor of a plaintiffs initial forum choice. The district court referenced the strong presumption three times. First, the district court explicitly referenced the “strong presumption against disturbing plaintiffs’ initial forum choice.” (Report at 3 (emphasis added; citation and internal punctuation omitted).) Second, the district court explained that “courts should apply the doctrine of forum non conveniens only in rare cases.” (Id. (emphasis added and internal punctuation omitted) (citing Gilbert,
C. The District Court’s Analysis of the Private Interests in Light of the Strong Presumption
I believe the district court’s decision is entitled to “substantial deference” because it “considered all relevant public and private interest factors, and ... its balancing of [those] factors [was] reasonable.” Piper Aircraft,
Considering the private interest factors explicitly set out in Gilbert, in light of its previous acknowledgment of the strong presumption in favor of a domestic plaintiffs forum choice, the district court ultimately concluded “the private convenience factors are at or near equipoise.” (Report
Witnesses who examined the merchandise when it was unloaded in Florida are located in Florida. Additionally, the allegedly defective products were shipped to Florida and are currently located in Florida, some of the negotiations took place in Florida, and Defendants’ representatives traveled to Florida on at least one occasion to negotiate.
However, weighing in favor of transfer to Spain is the fact that witnesses who shipped and manufactured the merchandise, as well as Defendants, are located in Spain. Additionally, in light of the fact that Plaintiffs alleged, in part, that the merchandise was defectively manufactured, it may be necessary to examine Defendants’ manufacturing facilities, which are located in Spain. Finally, the documentary evidence is located in both Florida and Spain, and some of it is in Spanish.
(Report at 4 (citation omitted).)
Essentially, the majority holds that when these substantive facts are combined with the strong presumption in favor of a domestic plaintiffs forum choice, a district court clearly abuses its discretion by dismissing the case on forum non conveniens grounds. This conclusion, however, cannot be reached under review for abuse of discretion without substituting the majority’s discretion for that of the district court. Instead, the only sensible way to understand the district court’s conclusion that the private interests were at or near equipoise is that the strong presumption in favor of domestic plaintiffs was partly defeated, not that it was ignored.
The latter interpretation, unfortunately, opens a Pandora’s Box of problems regarding the review of a district court’s forum non conveniens decision. Suppose 51 percent of the evidence were in Spain, and 49 percent were in Florida — would the strong presumption in favor of domestic plaintiffs tilt the balance in favor of retaining jurisdiction? What about 52 percent? 55 percent? 60 percent? In the forum non conveniens scale, precisely how heavily does the strong presumption in favor of domestic plaintiffs’ forum choices weigh? Abuse of discretion review is supposed to obviate the need of appellate courts to draw such arbitrary lines in the sand because it commits such decisions to thе district court’s sound discretion.
D. Summary
For these reasons, I respectfully disagree with the majority’s conclusion that the district court committed a clear abuse of discretion when it weighed the litigants’ private interests. Instead, I believe the district court adequately acknowledged the presumption, and still concluded, as was within its discretion, that the private interests were at or near equipoise.
III. THE MAJORITY’S PUBLIC INTEREST ANALYSIS
The district court found two public interests militated toward dismissal: the application of Spanish law and administrative burdens. The majority concludes the district court’s reasoning was in error. I disagree with the majority’s public interest analysis for two reasons.
First, as the majority expressly concedes, (Opinion at 1104), its pronouncements regarding public interests are dicta. See Denno v. Sch. Bd. of Volusia County, Fla.,
Second, the dicta regarding the application of foreign law as a relevant public interest consideration are inconsistent with no fewer than eight Eleventh Circuit cases and two Supreme Court cases. The Supreme Court and Eleventh Circuit have repeatedly held that avoiding the application of foreign law is a relevant public interest consideration. Piper Aircraft,
The majority tries to distinguish these casеs by noting that none of them involved exclusively domestic plaintiffs. (Opinion at 1104 & n.10.) When analyzing the public interests, however, this is a distinction without difference. The presumption in favor of a domestic plaintiffs forum does not apply when weighing the public interests. See Transytur Line,
IV. CONCLUSION
For these reasons, I respectfully dissent from today’s decision, and would instead affirm the district court.
. Like the majority, for convenience I treat the Magistrate Judge's Report and Recommendation as if it were the district court’s opinion.
. To aid appellate review, we previously clarified that district courts should consider both public and private factors "in all cases.” Leon v. Millon Air, Inc.,
. The majority suggests the district court "failed to articulate the relevant standards,” (Opinion at 1102), but I do not understand why the majority attaches talismanic significance to the fact the district court did not (1) quote "our rule that 'positive evidence of unusually extreme circumstances’ must be present and that the court must be 'thoroughly convinced that material injustice is manifest,’ ” or (2) explain the presumption only applies "when weighing thе private interests,” (Opinion at 1102). Given the district court’s explicit and repeated recognition of the strong presumption in favor of a plaintiff's forum choice, see infra Part II.B, I do not think it was necessary for the district court also to regurgitate the majority's particular magic words.
. The majority suggests the district court "never mentions the presumption in favor of the plaintiffs or incorporates the presumption into its calculus once it actually engages in weighing the private interests.” (Opinion at 1102.) I do not understand how the addition of the words "the presumption was defeated” would be any different from adding the proviso “I really mean it this time.”
. The majority declines to "speculate that the district court simply failed to mention the prеsumption in its application section, but nevertheless considered the presumption and determined that the presumption was defeated.” (Opinion at 1103.) In contrast, because we may only review the district court's decision for a clear abuse of discretion, I would decline to speculate that despite repeatedly stating the presumption in its rule section, the district court nevertheless “entirely failed to consider the presumption in its analysis at all.” (Opinion at 1102.)
. The majority reasons that because "the district court made clear that it found both fora 'equally inconvenient!,]’ if any presumption applies at all, it must apply in this situation.” (Opinion at 1103 n.9.) Thus, the majority interprets the district court to have determined that precisely 50 percent of the evidence was in Spain, and precisely 50 percent of the еvidence was in the United States. This interpretation, however, ignores the district court’s actual conclusion that the private interests were "at or near equipoise.” (Order at 4 (emphasis added).) Given the scope of this conclusion, and the limited scope of our review, I believe the district court calculated the presumption in favor of a plaintiff's forum choice did not outweigh its determination that somewhat more evidence was in Spain than the United States. As such, the majority commits the exact same error as countless advocates at oral argument by protesting that the Pandora’s Box problem does not apply in this case. (See Opinion at 1103 n. 9.) Not only does the Pandora’s Box problem apply to
. Alternatively, to the extent the majority merely intends to pronounce the district court could not accord dispositive weight to the potential application of foreign law, the majority knocks down a straw man argument never adopted by the district court. The district court never accorded dispositive weight to the potential application of foreign law because it already had balanced the private interests and concluded they were at or near equipoise. As such, the application of foreign law was nothing more than one of two public interests that tipped the forum non conveniens scale toward dismissal. Accordingly, the majority’s contrary citation to Burt v. Isthmus Development Co.,
