Morgan v. Healthcare Cost Containment United Association, Inc. et al
Filing
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MEMORANDUM AND ORDER signed by Chief Judge Morrison C. England, Jr. on 6/25/2015 DENYING 13 Defendant's Motion to Change Venue; this matter is hereby STAYED and referred to the Court's Alternative Dispute Resolution Division to schedule a settlement conference before a magistrate judge.(Reader, L)
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UNITED STATES DISTRICT COURT
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EASTERN DISTRICT OF CALIFORNIA
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LYNN MORGAN,
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Plaintiff,
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No. 1:14-cv-01721-MCE-SMS
v.
MEMORANDUM AND ORDER
HEALTHCARE COST CONTAINMENT
UNITED ASSOCIATION, INC., ICAN
BENEFIT GROUP LLC; and DOES 1
through 50, inclusive,
Defendants.
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Plaintiff Lynn Morgan (“Plaintiff”) brought this action against Defendants
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Healthcare Cost Containment United Association, Inc. (“HCCUA”) and ICAN Benefit
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Group LLC (collectively “Defendants”) seeking damages for wrongful termination and
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non-payment of wages. Currently before the Court is Defendants’ Motion to Transfer
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Venue to the Southern District of Florida pursuant to 28 U.S.C. § 1404(a). ECF No. 13.
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For the reasons set forth below, Defendants’ Motion is DENIED.1
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Because oral argument would not have been of material assistance, the Court ordered this
matter submitted on the briefing. E.D. Cal. Local R. 230(g).
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BACKGROUND
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In June 2008, HCCUA hired Plaintiff to serve as its President and work out of its
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office in Miami, Florida. Pl.’s Compl., ECF No. 1-1, ¶¶ 1, 2, 6. Plaintiff alleges that
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throughout her employment with Defendants, she noticed and raised objections to a
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number of unethical business practices. Id. ¶¶ 2-18. Nonetheless, she continued to
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work in Florida from June 2008 until she moved to California in December 2011. Id. ¶ 1.
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Plaintiff alleges that Defendants welcomed her move and “wished her well.” Pl.’s Opp’n,
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ECF No. 14, at 2. Defendants dispute this well-wishing and contend that it was made
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clear to Plaintiff that she was putting her job in jeopardy by moving to California.
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Glassberg Decl., ECF No. 19-1, ¶ 4.
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On August 31, 2012, less than one year after moving to California, Plaintiff’s
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employment was terminated by HCCUA. Compl. ¶ 18. Defendants subsequently sued
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Plaintiff in Florida state court; that matter is still proceeding. In August 2014, Plaintiff
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brought suit in California state court with claims for wrongful termination, nonpayment of
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wages, failure to pay all wages due upon discharge, unfair competition, invasion of
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privacy, and intentional infliction of emotional distress. Compl. ¶¶ 24-29, 31-35, 37-41,
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43-51, 53-58, 60-65. Defendants later removed the case to the Eastern District of
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California. See ECF No. 1.
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Defendants now seek to transfer this case to the Southern District of Florida.
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Defendants argue that hearing the case in Florida would be more convenient for non-
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party witnesses, that a portion of the events took place in Florida, and that documents
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relevant to this case are stored in Florida. Def.’s Mot., ECF No. 13-1.
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STANDARD
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“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
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been brought.” 28 U.S.C. § 1404(a). The purpose of Section 1404(a) is to “prevent the
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waste of time, energy, and money and to protect litigants, witnesses and the public
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against unnecessary inconvenience and expense.” Van Dusen v. Barrack, 376 U.S.
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612, 616 (1964) (internal quotation marks omitted). On a motion to transfer venue, the
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moving party must make “a strong showing of inconvenience to warrant upsetting the
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plaintiff's choice of forum.” Hope v. Otis Elevator Co., 389 F. Supp. 2d 1235, 1243 (E.D.
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Cal. 2005) (quoting Decker Coal Co. v. Commonwealth Edison Co., 805 F.2d 834, 843
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(9th Cir. 1986)). The Court has discretion in deciding whether such transfer is warranted
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based on an “individualized, case-by-case consideration of convenience and fairness.”
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Van Dusen, 376 U.S. at 622.
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Once the court determines that a case could have been brought before the
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proposed transferee court, it must consider a number of private and public factors
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relating to the interests of the parties and the judiciary. For example, the court may
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consider: (1) the convenience of the parties and witnesses, (2) the interests of justice,
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(3) the plaintiff’s choice of forum, (4) the parties’ contacts with the forum, (5) the
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relationship of the plaintiff’s cause of action to the forum, (6) the difference in litigation
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costs between the two fora, (7) the availability of compulsory process to compel
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attendance of unwilling non-party witnesses, and (8) the ease of access to evidence.
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See 28 U.S.C. § 1404(a); Jones v. GNC Franchising, Inc., 211 F.3d 495, 498-99 (9th Cir.
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2000).
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ANALYSIS
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This action could have been brought in the Southern District of Florida. A venue
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is considered proper if all of the defendants reside in the district or the action at issue
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took place there. 28 U.S.C. § 1391(b). Here, all Defendants reside in Florida and some
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of the circumstances that led to Plaintiff’s Complaint occurred in Florida. Specifically,
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Plaintiff was hired and worked for a number of years in Florida, and even after moving to
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California, she communicated and worked with Defendants in Florida. Thus, this case
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could have been brought before the Southern District of Florida. Accordingly, the Court
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will now address the aforementioned private and public factors.
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A. The Convenience of Parties and Witnesses
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Courts can assess the nature of hardship associated with a particular forum on
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parties and witnesses involved in litigating a cause of action. See Jones, 211 F.3d at
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498-99. This factor is considered one of the most important when weighing a motion to
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transfer venue. See, e.g., Denver & Rio Grande W. Ry. Co. v. Bhd. of R.R. Trainmen,
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387 U.S. 556, 560 (1967) (“[V]enue is primarily a matter of convenience of litigants and
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witnesses.”). Here, Defendants reside in Florida and conduct the entirety of their
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business there. Plaintiff, on the other hand, lives in California and is of more limited
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income, especially since her termination. Defendants, institutional organizations, appear
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to be in the better position to travel to California to litigate this matter if necessary.
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Yet the Court finds that the convenience of non-party witnesses leans toward
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transferring the matter to Florida. Plaintiff names only two witnesses that live in
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California—her husband and her acupuncturist; both are expected to testify about
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Plaintiff’s emotional distress. Defendant and Plaintiff intend to call a large number of
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employees and affiliates of Defendants. All of these individuals live in Florida. The
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number of witnesses who reside in Florida clearly tips the scales in favor of transfer to
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the Southern District of Florida.
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B. The Interest of Justice
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The interest of justice includes considerations of the right to a speedy trial,
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consolidation of related lawsuits, and appearing before a judge familiar with the
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applicable law. Allstar Mktg. Group, LLC v. Your Store Online, LLC, 666 F. Supp. 2d
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1109, 1134 (C.D. Cal. 2009). Defendants contend that the Southern District of Florida is
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the better venue for this action because, on average, it takes roughly three months
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longer in this District for a matter to proceed from filing to disposition. More strikingly, it
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takes nearly thirty months longer in this District for a case to advance from filing to trial.
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The need for a speedy trial is a legitimate concern; however, whether the case will
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proceed to trial is speculative and therefore the 30-month delay holds minimal weight.
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Thus, the Court will consider the extra time for proceedings to go from filing to
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disposition in this District. The additional three months is not substantial enough to
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clearly indicate a preference for transfer.
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Defendants have a separate cause of action pending against Plaintiff in Florida
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state court. Because the action is proceeding in state court, there does not appear a
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high likelihood that transfer of this case to the Southern District of Florida would lead to
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consolidation.
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Finally, Plaintiff alleges violations of a number of California labor laws in this suit.
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California courts are presumably more proficient in California labor laws than the
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Southern District of Florida; notwithstanding that, as Defendants note, that District
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recently applied California labor laws.
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This factor weighs against transfer.
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C. Plaintiff’s Choice of Forum
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There is no dispute that the Eastern District of California is Plaintiff’s preferred
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forum. But the parties disagree as to the amount of deference that should be given to
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Plaintiff’s choice of forum. Defendants state that Plaintiff’s choice of forum should be
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given little weight “if the operative facts have not occurred within the forum of original
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selection and that forum has no particular interest in the parties or the subject matter.”
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Reply, ECF No. 19, at 3 (quoting Pacific Car & Foundry Co. v. Pence, 403 F.2d 949, 954
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(9th Cir. 1968)). On the other hand, a plaintiff’s choice of forum is generally granted
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substantial deference, especially when a plaintiff chooses the home state of the action.
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Piper Aircraft Co. v. Reyno, 454 U.S. 235, 255-56 (1981). Here, the alleged wrongful
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termination and failure to pay wages occurred in California. Plaintiff lived and worked in
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Florida for a number of years, but she was a resident of California when Defendants
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terminated her employment. California also has an interest both in Plaintiff as a citizen
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and in the correct application and enforcement of its laws. These facts lean strongly
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against transfer.
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D. The Parties’ Contacts with the Forum
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As to the parties’ contacts with the forum, Defendant HCCUA has over 700
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members in California. These individuals, presumably, were conducting business with
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Defendants while residing in California. This indicates a sufficient level of contact with
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California. Further, Defendants allowed Plaintiff to live and work in California for many
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months as the President of its organization. Clearly, Plaintiff has sufficient contact with
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California given her residency and employment. This factor weighs against transfer to
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Florida.
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E. The Relationship of Plaintiff’s Cause of Action to the Forum
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Plaintiff’s cause of action relates to the Eastern District of California. Plaintiff
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alleges that Defendants violated California business laws and practices and her alleged
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wrongful termination occurred while she resided in California. Defendant reiterates that
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Plaintiff was initially employed in Florida, but Plaintiff is suing over wrongs experienced in
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California. This factor weighs against transfer.
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F. The Difference in Litigation Costs Between the Two Fora
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Defendant highlights the possibility of Plaintiff using her Florida attorney to
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represent her in both cases if this matter were transferred. There is no evidence,
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however, that Plaintiff’s current Florida attorney is versed in California law. Similarly, she
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would have to travel to be present in Florida for the relevant proceedings. This hardship
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of travel and attorney costs is similarly experienced by Defendants. Just because, as
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businesses, Defendants might be more able to afford the costs associated with litigation,
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the costs would increase for either side depending on the choice of forum. This factor,
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therefore, weighs neutrally in the decision of whether or not to transfer.
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G. Availability of Compulsory Process for Non-Party Witnesses
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The majority of the witnesses work and reside in Florida. If some or all of these
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witnesses were not willing to testify, under Federal Rule of Civil Procedure 45(c), this
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Court could not execute a subpoena on these witnesses because they live over 100
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miles from the Eastern District of California. Presumably, most witnesses are employees
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of Defendants and therefore can be compelled by their employers to fly to California for
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necessary proceedings. Yet those who are not under an obligation to comply with
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Defendants’ wishes would be less likely to make the journey across the country to testify
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in this matter. Plaintiff only has two witnesses that currently reside in California: her
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husband and her acupuncturist. She anticipates both will testify about her emotional
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distress caused by her termination of employment. Although she may not be able to
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compel her acupuncturist to appear in Florida, her husband would presumably appear
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on her behalf if needed. This factor weighs in favor of transfer.
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H. Ease of Access to Evidence
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Defendants argue that documents relevant to this case are stored in Florida.
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However, any relevant documents now stored in Florida can be easily transported
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physically or electronically to California. See Panavision Int’l L.P. v. Toeppen, 141 F.3d
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1316, 1323 (9th Cir. 1998) (“[The location of evidence . . . is no longer weighed heavily
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given the modern advances in communication.”). This factor weighs in favor of transfer,
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but this factor is given little weight.
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I. Evaluating All Relevant Factors
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The Court must consider these relevant factors to determine which forum is more
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convenient. Although three of the factors indicate that a transfer to the Southern District
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of Florida is appropriate, the remaining factors are either neutral or weigh in favor of
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denying Defendant’s Motion to Transfer Venue. Additionally, the actions that directly led
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to this lawsuit occurred while Plaintiff was residing and working in California. The burden
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was on Defendants to show not that the Southern District of Florida is an equally
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convenient forum, but rather that it would be a more convenient forum for this matter.
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Defendants were not able to satisfy this burden.
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J. Alternative Dispute Resolution
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The parties indicate in their Joint Status Report that they “believe that referral to a
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judicial settlement conference or referral to VDRP would assist [them] to try and reach
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an early compromise resolution of this action.” ECF No. 11 ¶ L. It furthers the interest of
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justice to allow the parties to reach an adequate settlement of their claims without
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burdening the federal courts. The parties are involved in multiple lawsuits and referral to
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alternative dispute resolution may effectively resolve all pending claims. Thus, the Court
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believes that staying this matter pending an effort at settlement is the most efficient
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course of action.
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CONCLUSION
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For the reasons set forth above, Defendant’s Motion to Transfer Venue (ECF
No. 13) is DENIED.
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On the Court’s own motion, this matter is hereby STAYED and referred to the
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Court’s Alternative Dispute Resolution Division to schedule a settlement conference
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before a magistrate judge. The assigned magistrate judge will issue a scheduling order
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for the settlement conference, and counsel is instructed to have a principal with full
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settlement authority present at the conference or to be fully authorized to settle the
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matter on any terms. The parties are ordered to file status reports with this Court not
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later than seven days after the conclusion of the settlement conference.
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IT IS SO ORDERED.
Dated: June 25, 2015
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