Chesapeake Climate Action Network et al v. Export-Import Bank of the United States et al
Filing
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ORDER GRANTING MOTION TO TRANSFER VENUE by Hon. William Alsup granting 10 Motion to Transfer Case.(whalc3, COURT STAFF) (Filed on 11/15/2013)
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IN THE UNITED STATES DISTRICT COURT
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FOR THE NORTHERN DISTRICT OF CALIFORNIA
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For the Northern District of California
United States District Court
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CHESAPEAKE CLIMATE ACTION
NETWORK, FRIENDS OF THE EARTH,
SIERRA CLUB, WEST VIRGINIA
HIGHLANDS CONSERVANCY, CENTER
FOR INTERNATIONAL ENVIRONMENTAL
LAW and PACIFIC ENVIRONMENT,
Plaintiffs,
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ORDER GRANTING
MOTION TO
TRANSFER VENUE
v.
EXPORT-IMPORT BANK OF THE UNITED
STATES and FRED P. HOCHBERG, in his
official capacity as Chairman of the
Export-Import Bank of the United States,
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Defendants.
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No. C 13-03532 WHA
INTRODUCTION
In this NEPA action, the federal parties move to transfer this action to the United States
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District Court for the District of Columbia. For the reasons set forth below, the motion is
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GRANTED.
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STATEMENT
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Defendant Export-Import Bank of the United States is a federal agency that is authorized
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to provide credit guarantees to facilitate exports of goods and services, imports, and exchange of
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commodities between the United States and any foreign country. It is authorized to approve loan
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guarantees only when the guarantee would facilitate the expansion of exports which would not
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otherwise occur. On May 24, 2012, the Export-Import Bank and Fred P. Hochberg, Chairman
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of the Export-Import Bank (collectively “Export-Import Bank”) approved a $90 million dollar
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commercial loan guarantee in support of Xcoal Energy & Resources, LLC (“Xcoal”), a coal
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mining, transport and export company. In 2010, Xcoal exported approximately eleven million
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tons of metallurgical coal via ports in Baltimore and Hampton Roads, making it the largest coal
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exporter in the United States that year (Compl. ¶¶ 2, 17–21).
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Plaintiffs are non-profit environmental groups. Plaintiff Chesapeake Climate Action
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Network is headquartered in Takoma Park, Maryland, and has an office in Richmond, Virginia.
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Plaintiff Friends of the Earth, Inc., is incorporated and headquartered in Washington, D.C.,
with an office in Berkeley, California. Plaintiff Sierra Club is incorporated and headquartered
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For the Northern District of California
United States District Court
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in California. Plaintiff West Virginia Highlands Conservancy is incorporated and headquartered
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in West Virginia. Plaintiff Center for International Environmental Law is incorporated
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in Washington, D.C. Plaintiff Pacific Environment is incorporated and headquartered in
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San Francisco. Their complaint asserts that as a result of the loan guarantee, the Export-Import
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Bank “enables Xcoal to broker an estimated $1 billion in sales of coal for export from mines
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in Appalachia; transport that coal by rail to port facilities in [Maryland and Virginia]; . . .
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store . . . that coal in port; and then transport that coal by ship to clients in China, Japan,
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South Korea and elsewhere.” Each of these activities allegedly causes “significant adverse
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effects on human health and the environment.” In particular, the complaint alleges that coal
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dust and diesel exhaust emitted by the mining and transportation of coal contributes to
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cardiopulmonary problems in mining communities, along rail lines, and around export terminals.
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Coal mining also allegedly contaminates its surrounding environment, harms local wildlife
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populations, and produces large volumes of contaminated wastewater. It further alleges that the
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Export-Import Bank failed to comply with the National Environmental Policy Act by failing to
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prepare an environmental impact statement or an environmental analysis prior to approving the
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Xcoal loan guarantee (id. ¶¶ 2–3, 11–15, 22). Defendants now move to transfer venue to the
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United States District Court for the District of Columbia. This order follows full briefing and
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oral argument.
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ANALYSIS
“For the convenience of parties and witnesses, in the interest of justice, a district court
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may transfer any civil action to any other district or division where it might have been brought.”
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28 U.S.C. 1404(a). This section’s purpose is “to prevent the waste of time, energy, and money
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and to protect litigants, witnesses and the public against unnecessary inconvenience and
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expense.” Van Dusen v. Barrack, 376 U.S. 612, 616 (1964). The parties do not dispute that
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the action could have been brought in the District of Columbia.
individualized, case-by-case consideration of public factors which go to the interests of justice,
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and private factors, which go to the convenience of the parties and witnesses. The burden is on
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For the Northern District of California
A district court has discretion to adjudicate motions to transfer according to an
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United States District Court
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defendants to make a strong showing of inconvenience to warrant upsetting plaintiffs’ choice
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of forum. Decker Coal Co. v. Commonwealth Edison Co., 805 F.2d 834, 843 (9th Cir. 1986).
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In ruling on a transfer motion, a district court must consider private convenience and
CONVENIENCE AND FAIRNESS FACTORS.
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fairness factors, including ease of access to sources of proof, plaintiffs’ choice of forum, relative
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convenience to parties, and relative convenience to witnesses.
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The general rule is that a plaintiff’s choice of forum is afforded substantial weight.
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Decker, 805 F.2d at 843. Two of the six plaintiffs in the instant action, Sierra Club and Pacific
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Environment, are headquartered and incorporated in this district. Despite this, the degree to
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which courts defer to a plaintiff’s chosen venue is substantially reduced where the forum lacks
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a significant connection to the activities alleged in the complaint. Corley v. Kinder Morgan,
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Inc., No. 12-03209, 2012 U.S. Dist. LEXIS 150392 at *3 (N.D. Cal. 2012) (citations omitted).
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This is true even if the plaintiff is a resident of the forum. Knapp v. Wachovia Corp.,
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No. 7-4551, 2008 WL 2037611, at *2 (N.D. Cal. 2008) (Judge Susan Illston).
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In this action, none of the operative facts arose in this district. The Export-Import Bank’s
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decisionmaking regarding the loan guarantee to Xcoal occurred exclusively in the District of
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Columbia (Decl. of Mario Ramirez at 1–2). Plaintiffs rely on Center for Biological Diversity v.
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Export-Import Bank, a recent decision by Judge Saundra Armstrong that denied defendants’
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motion to transfer venue, to argue that plaintiffs’ choice of venue should be given substantial
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weight even though defendant Export-Import Bank’s decisionmaking occurred in the District of
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Columbia. Ctr. for Biological Diversity v. Export-Import Bank, No. 12-6325, 2013 U.S. Dist.
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LEXIS 133694 (N.D. Cal. September 17, 2013). That order, however, is distinguishable from
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this action because there, plaintiff organizations rely on their members who lived in this district
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and claimed “harm [to] their recreational and aesthetic interests” for organizational standing.
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Id. at 18. By contrast, plaintiffs in this action rely on their members on the East Coast who face
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“harm to their health, property, and aesthetic and recreational interests due to . . . [the] adverse
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effects of Ex-Im Bank’s financing of Xcoal’s coal exports activities” for standing (Compl.
¶¶ 12–16). While members nationwide may have general concerns about defendants’ alleged
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For the Northern District of California
United States District Court
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failure to comply with NEPA, their members alleging specific injuries stemming from Xcoal’s
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coal exports live on the East Coast. Moreover, in Center for Biological Diversity, all of the
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plaintiff organizations were headquartered in this district. In this action, only two of the
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six plaintiffs are headquartered in this district. Thus, this factor weighs in favor of transfer.
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As deference to a plaintiff’s choice of forum decreases, a defendant’s burden to upset the
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plaintiff’s choice of forum also decreases. Do v. Hollins Law, No. 13-1322, 2013 WL 3703405
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at *3 (N.D. Cal. July 12, 2013) (Judge Jeffery White) (citations omitted).
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The next factor involves the location of relevant sources of proof and convenience to
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potential witnesses. Both parties agree that the merits of this action will most likely be resolved
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on cross-motions for summary judgment based on the administrative record (Defendants’ Br. at
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11; Opp. at 9). Defendants argue that if witness testimony becomes necessary, such witnesses
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are located in the District of Columbia. Defendants, however, failed to “identify the key
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witnesses to be called and [failed] to present a generalized statement of what their testimony
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would include.” Florens Containers v. Cho Yang Shipping, 245 F. Supp. 2d 1086, 1093 (N.D.
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Cal. 2002) (Judge Martin Jenkins). Thus, this venue’s convenience to defendants’ potential
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witnesses is less important. Do, 2013 WL 3703405 at *3. Moreover, technological advances
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in document storage and retrieval mitigate the burdens of transporting documents, if any, from
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the District of Columbia to this district. Therefore, this factor is only slightly favors transfer.
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Turning to the third factor, the convenience of parties, defendants argue that they
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are located in the District of Columbia and thus would incur significant costs to travel to
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San Francisco (Br. at 11–12). It seems clear that most of the parties on the plaintiffs’ side
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would find Washington, D.C., more convenient than San Francisco and certainly all of the
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defendant parties would as well. The convenience of counsel is entitled to little weight.
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Ctr. for Biological Diversity v. Rural Utils. Serv., No. 8-1240, 2008 U.S. Dist. LEXIS 51835
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at *5 (N.D. Cal. June 27, 2008) (Judge Maxine Chesney). This factor favors transfer.
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A district court hearing a motion to transfer must also consider public-interest factors
THE INTERESTS OF JUSTICE.
such as relative degrees of court congestion, local interest in deciding local controversies,
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For the Northern District of California
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potential conflicts of laws, and other interests of justice. Decker Coal, 805 F.2d at 843.
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Both parties concede that courts in this district are as equally familiar with the environmental
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laws at issue as courts in the District of Columbia.
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With regard to local interest, the District of Columbia has a stronger local interest in this
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action than this district because the administrative process occurred in the District of Columbia
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and the federal defendants reside there. Ctr. for Food Safety v. Vilsack, No. 11-831, 2011 U.S.
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Dist. LEXIS 31688, at *20 (N.D. Cal. March 17, 2011) (Judge Jeffery White). Moreover, the
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Northern District does not have a particular interest in the subject matter of this action as none
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of the environmental impacts alleged in the complaint occurred in this district (Compl. ¶ 2).
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See Alec L. v. Jackson, No. 11-2203, 2011 U.S. Dist. LEXIS 140102, at *9–10 (N.D. Cal. Dec. 6,
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2011) (Judge Edward Chen). By contrast, Appalachia is at the doorstep of our nation’s capital.
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Thus, this factor favors transfer.
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As to court congestion, courts in this district consider the “median time from filing
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to disposition or trial.” Ctr. for Food Safety, 2011 WL 996343, at *8 (citations omitted).
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Here, both parties agree that the median time for a civil case to be resolved in this district is
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shorter than in the District of Columbia by 2.5 months (Br. at 17, Opp. at 14–15). Each judge
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in this district, however, has more than twice as many pending cases as a judge in the District
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of Columbia. See United States Courts, Federal Court Management Statistics (June 2013),
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http://www.uscourts.gov/statistics/federalcourtmanagementstatistics.aspx. It is hard to account
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for this anomaly. Thus, this factor will not be given weight.
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CONCLUSION
The factors, on balance, strongly favor transfer, and the Clerk shall transfer this action
to the United States District Court for the District of Columbia.
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IT IS SO ORDERED.
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Dated: November 15, 2013.
WILLIAM ALSUP
UNITED STATES DISTRICT JUDGE
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For the Northern District of California
United States District Court
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