Securities and Exchange Commission v. Gallagher

Filing 149

ORDER denying 140 Motion to Change Venue. For these reasons, and having considered the entirety of the parties' arguments, the Court concludes that Gallagher has not met his burden to show that transfer to the Northern District of Ohio is warranted. Gallagher's motion to transfer pursuant to 28 U.S.C. § 1404(a) is DENIED. The Clerk of Court is respectfully directed to terminate the motion at ECF 140. SO ORDERED. (Signed by Judge P. Kevin Castel on 1/29/2025) (vfr)

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U NI T E D S T A T E S DI S T RI C T C O U R T S O U T H E R N DI S T RI C T O F N E W Y O R K ----------------------------------------------------------- x S E C U RI TI E S A N D E X C H A N G E C O M MI S SI O N , Pl ai ntiff , 2 1 -c v -8 7 3 9 ( P K C) -a g ai n st - OR DER S T E V E N M. G A L L A G H E R, a/ k/ a “ Al e x a n d er D el ar g e 6 5 5 3 2 1, ” D ef e n d a nt . ----------------------------------------------------------- x C A S T E L, U. S. D.J., D ef e n d a nt St e v e n M. G all a g h er m o v es t o tr a nsf er t his a cti o n t o t h e N ort h er n Distri ct of O hi o p urs u a nt t o 2 8 U. S. C. § 1 4 0 4( a). ( E C F 1 4 0.) His m oti o n c o m es at a v er y l at e st a g e i n t his liti g ati o n. It h as b e e n o v er t hr e e y e ars si n c e t h e S E C c o m m e n c e d t his a cti o n ( E C F 1), a n d t h e fi n al pr etri al c o nf er e n c e i n t his c as e is s c h e d ul e d t o b e h el d i n l ess t h a n t w o m o nt hs. ( E C F 1 3 7.) F or t h e f oll o wi n g r e as o ns, G all a g h er’s m oti o n is d e ni e d. S e cti o n 1 4 0 4( a) pr o vi d es t h at “[f] or t h e c o n v e ni e n c e of p arti es a n d wit n ess es, i n t h e i nt er est of j usti c e, a distri ct c o urt m a y tr a nsf er a n y ci vil a cti o n t o a n y ot h er distri ct or di visi o n w h er e it mi g ht h a v e b e e n br o u g ht or t o a n y distri ct or di visi o n t o w hi c h all p arti es h a v e c o ns e nt e d. ” 2 8 U. S. C. § 1 4 0 4( a). T his s ets o ut a “t w o - p art i n q uir y: first, w h et h er t h e a cti o n t o b e tr a nsf err e d mi g ht h a v e b e e n br o u g ht i n t h e tr a nsf er e e c o urt; a n d s e c o n d, w h et h er c o nsi d eri n g t h e c o n v e ni e n c e of t h e p arti es a n d wit n ess es, a n d t h e i nt er est of j usti c e, a tr a nsf er is a p pr o pri at e. ” 1 Li h u a n W a n g v. P h o e ni x S at ellit e T el e visi o n U S, I n c., 1 3-c v - 2 1 8 ( P K C), 2 0 1 4 1 T h e p arti es d o n ot dis p ut e t h at t his a cti o n c o ul d h a v e b e e n br o u g ht i n t h e N ort h er n Distri ct of O hi o. A c c or di n gl y, o nl y t h e s e c o n d i n q uir y is at iss u e h er e. W L 1 1 6 2 2 0, at * 2 ( S. D. N. Y. J a n. 1 3, 2 0 1 4) (i nt er n al q u ot ati o n m ar ks a n d cit ati o n o mitt e d). “ Distri ct c o urts h a v e br o a d dis cr eti o n i n m a ki n g d et er mi n ati o ns of c o n v e ni e n c e u n d er S e cti o n 1 4 0 4( a) a n d n oti o ns of c o n v e ni e n c e a n d f air n ess ar e c o nsi d er e d o n a c as e- b y- c as e b asis. ” D. H. Bl air & C o., I n c. v. G ott di e n er, 4 6 2 F. 3 d 9 5, 1 0 6 ( 2 d Cir. 2 0 0 6). “ A m o n g t h e f a ct ors t o b e c o nsi d er e d i n d et er mi ni n g w h et h er t o gr a nt a m oti o n t o tr a nsf er v e n u e ar e, i nt er ali a: ( 1) t h e pl ai ntiff’s c h oi c e of f or u m, ( 2) t h e c o n v e ni e n c e of wit n ess es, ( 3) t h e l o c ati o n of r el e v a nt d o c u m e nts a n d r el ati v e e as e of a c c ess t o s o ur c es of pr o of, ( 4) t h e c o n v e ni e n c e of p arti es, ( 5) t h e l o c us of o p er ati v e f a cts, ( 6) t h e a v ail a bilit y of pr o c ess t o c o m p el t h e att e n d a n c e of u n willi n g wit n ess es, a n d ( 7) t h e r el ati v e m e a ns of t h e p arti es. ” N e w Y or k M ari n e a n d G e n er al I ns ur a n c e C o. v. L af ar g e N ort h A m eri c a, I n c. , 5 9 9 F. 3 d 1 0 2, 1 1 2 ( 2 d Cir. 2 0 1 0) (i nt er n al q u ot ati o n m ar ks a n d cit ati o n o mitt e d). C o urts als o c o nsi d er “t h e f or u m’s f a mili arit y wit h t h e g o v er ni n g l a w a n d tri al effi ci e n c y a n d t h e i nt er ests of j usti c e. ” W a n g, 2 0 1 4 W L 1 1 6 2 2 0, at * 2 (i nt er n al q u ot ati o n m ar ks a n d cit ati o n o mitt e d). T h e b ur d e n is o n t h e p art y m o vi n g t o tr a nsf er t o s h o w b y cl e ar a n d c o n vi n ci n g e vi d e n c e t h at tr a nsf er is w arr a nt e d. S e e N e w Y or k M ari n e , 5 9 9 F. 3 d at 1 1 3- 1 4. T h e l at e ti mi n g of G all a g h er’s m oti o n pr es e nts iss u es c o n c er ni n g tri al effi ci e n c y a n d t h e i nt er ests of j usti c e t h at w ei g h v er y str o n gl y a g ai nst tr a nsf er. “ T h e ti mi n g of a m oti o n t o tr a nsf er v e n u e, alt h o u g h n ot b y its elf n or m all y dis p ositi v e, is r el e v a nt. ” C o m m er ci al U ni o n I ns ur a n c e C o. v. E m er y Air Fr ei g ht C or p., 9 2-c v - 6 5 1 3 ( L M M), 1 9 9 5 W L 2 3 2 7 5 7, at * 1 ( S. D. N. Y. A pr. 1 9, 1 9 9 5). I n d e e d, c o urts i n t his Cir c uit h a v e d e ni e d m oti o ns t o tr a nsf er b e c a us e, as h er e, t h e y w er e s u b mitt e d at a n e x c e e di n gl y l at e st a g e i n a c as e. S e e i d. ( d e n yi n g m oti o n t o tr a nsf er w h er e pl ai ntiff’s dir e ct c as e h a d alr e a d y b e e n s u b mitt e d i n writi n g as p art of b e n c h tri al); H a milt o n I nt er n ati o n al Lt d. v. V orti c L L C, 4 1 4 F. S u p p. 3 d 6 1 2, 6 2 3- 2 4 ( S. D. N. Y. 2 0 1 9) ( d e n yi n g m oti o n t o tr a nsf er m a d e aft er cl os e of dis c o v er y a n d pl ai ntiff’s s u m m ar y j u d g m e nt - 2- m oti o n); M att el, I n c. v. R o b ar b’s, I n c., 1 3 9 F. S u p p. 2 d 4 8 7, 4 9 1 ( S. D. N. Y. 2 0 0 1) ( d e n yi n g m oti o n t o tr a nsf er w h er e p arti es h a d “ alr e a d y e x p e n d e d c o nsi d er a bl e ti m e a n d e x p e ns e i n c o n d u cti n g dis c o v er y ” a n d h a d fil e d a j oi nt fi n al pr etri al or d er), p arti al r e c o nsi d er ati o n gr a nt e d o n ot h er gr o u n ds, 0 0- c v - 4 8 6 6 ( R W S), 2 0 0 1 W L 7 9 7 4 7 8 (J ul y 1 2, 2 0 0 1). I n t his c as e, all dis c o v er y h as e n d e d, a n d t h e p arti es ar e n o w w ell i nt o t h e pr o c ess of pr e p ari n g t h eir pr etri al s u b missi o ns i n a d v a n c e of t h e fi n al pr etri al c o nf er e n c e s c h e d ul e d f or M ar c h 1 2. 2 ( E C F 1 3 7.) I n t h e m or e t h a n t hr e e y e ars t h at h a v e p ass e d si n c e t his c as e w as c o m m e n c e d, t h e C o urt h as, a m o n g ot h er t hi n gs, e nt er e d a n d m o difi e d a t e m p or ar y r estr ai ni n g or d er a g ai nst G all a g h er ( E C F 1 1 a n d 1 7 ), iss u e d a n o pi ni o n a n d or d er d e n yi n g G all a g h er’s m oti o n t o dis miss ( E C F 8 2), gr a nt e d a n d d e ni e d v ari o us m oti o ns t o c o m p el ( E C F 1 0 4, 1 2 2, a n d 1 3 4), a n d h el d t hr e e c o nf er e n c es. T h e C o urt h as g ai n e d a cl os e f a mili arit y wit h t his c as e . T h e C o urt c o n cl u d es t h at t o tr a nsf er t his c as e at s u c h a l at e st a g e w o ul d n e e dl essl y d el a y its r es ol uti o n, r e q uiri n g a n e w j u d g e t o e x p e n d si g nifi c a nt r es o ur c es i n g ai ni n g f a mili arit y wit h t h e a cti o n, a n d w o ul d n ot b e i n t h e i nt er ests of j usti c e. T h es e c o n c er ns of tri al effi ci e n c y a n d t h e i nt er ests of j usti c e o ut w ei g h t h e r e m ai ni n g c o nsi d er ati o ns, e a c h of w hi c h t h e C o urt h as e v al u at e d. I n bri ef, t h e C o urt first n ot es t h at t o t h e e xt e nt t h e l o c us of o p er ati v e f a cts is n ot c e nt er e d i n t his f or u m, G all a g h er c o ul d h a v e m a d e t h at ar g u m e nt m u c h e arli er i n t his liti g ati o n. I n a n y e v e nt, t h e S E C’s c h oi c e of f or u m is still e ntitl e d t o s o m e d ef er e n c e, s o t his f a ct or w ei g hs a g ai nst tr a nsf er. S e c o n d, c o nsi d er ati o ns of i n c o n v e ni e n c e a n d e x p e ns e t o G all a g h er, as w ell as t o p ot e nti al wit n ess es, o nl y w ei g h mil dl y i n f a v or of tr a nsf er. T hir d, t h e l o c ati o n of r el e v a nt d o c u m e nts a n d r el ati v e e as e of a c c ess t o s o ur c es 2 T h e C o urt pr e vi o usl y v a c at e d a tri al d at e of A pril 7, 2 0 2 5. ( E C F 1 3 7.) - 3- of pr o of, a v ail a bilit y of pr o c ess t o c o m p el t h e att e n d a n c e of wit n ess es, a n d f or u m’s f a mili arit y wit h t h e g o v er ni n g l a w ar e all n e utr al f a ct ors. F or t h es e r e as o ns, a n d h a vi n g c o nsi d er e d t h e e ntir et y of t h e p arti es’ ar g u m e nts, t h e C o urt c o n cl u d es t h at G all a g h er h as n ot m et his b ur d e n t o s h o w t h at tr a nsf er t o t h e N ort h er n Distri ct of O hi o is w arr a nt e d. G all a g h er’s m oti o n t o tr a nsf er p urs u a nt t o 2 8 U. S. C. § 1 4 0 4( a) is D E NI E D. T h e Cl er k of C o urt is r es p e ctf ull y dir e ct e d t o t er mi n at e t h e m oti o n at E C F 1 4 0. S O O R D E R E D. D at e d: N e w Y or k, N e w Y or k J a n u ar y 2 9, 2 0 2 5 - 4-

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