Bar Exam — MBE (Multistate Bar Exam)Civil ProcedureMedium
A plaintiff, a citizen of State A, sued a defendant corporation, incorporated in State B with its principal place of business in State C, in federal court in State A. The plaintiff alleged a state-law claim for $90,000 in damages. The defendant moved to dismiss for improper venue. Which of the following is a proper venue for this action?
- AAny district in State C.
- BAny district in State A.
- CAny district in State D, where a substantial part of the events giving rise to the claim occurred.
- DAny district in State B.
Show answer & explanationAnswer & explanation
Correct answer: C. Any district in State D, where a substantial part of the events giving rise to the claim occurred.
Under 28 U.S.C. § 1391(b), venue is proper in a judicial district where a substantial part of the events or omissions giving rise to the claim occurred, or where a substantial part of property that is the subject of the action is situated. This is a common basis for venue.
Why the other options are wrong
- A. State C is the defendant corporation's principal place of business. Similar to B, while a corporate defendant is deemed to reside in any judicial district in which it is subject to personal jurisdiction, this option is too broad without specifying the district.
- B. State A is the plaintiff's residence, which is not a basis for venue unless it's also where a defendant resides.
- D. State B is where the defendant corporation is incorporated. While a corporate defendant is deemed to reside in any judicial district in which it is subject to personal jurisdiction at the time the action is commenced, this option doesn't specify the district or connection to personal jurisdiction.
General Venue Rule (28 U.S.C. § 1391)
Venue specifies the particular federal judicial district where a lawsuit can be filed. It is distinct from subject matter jurisdiction and personal jurisdiction.
- Venue is proper in a district where any defendant resides, if all defendants reside in the same state.
- Venue is proper in a district where a substantial part of the events or omissions giving rise to the claim occurred, or where property is located.
- If neither of the above, venue is proper in any district in which any defendant is subject to the court's personal jurisdiction with respect to the action.
Memory trick: Venue is 'Where' the action 'Can Be'.