Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

MIDWEST PRECISION SERVICES v. PTM INDUSTRIES

November 30, 1983

MIDWEST PRECISION SERVICES, INC., AN ILLINOIS CORPORATION, PLAINTIFF,
v.
PTM INDUSTRIES CORPORATION, A MASSACHUSETTS CORPORATION, DEFENDANT.



The opinion of the court was delivered by: Bua, District Judge.

MEMORANDUM ORDER

Before the Court is defendant's motion to dismiss the complaint pursuant to Fed.R.Civ.P. 12(b)(6), or in the alternative, to transfer this case to the District Court of Massachusetts pursuant to 28 U.S.C. § 1404(a). For the reasons stated herein, defendant's motion to transfer is granted. Having determined that a transfer of this case to the District Court of Massachusetts is proper, the Court declines the opportunity to consider defendant's motion to dismiss and will leave that matter to the transferee court for its consideration.*fn1

I. FACTS

Plaintiff Midwest Precision Services, Inc. ("Midwest") brings this action against PTM Industries Corporation ("PTM") to recover damages for PTM's failure to accept delivery of a Maegerle Crushing Creep Feed Grinder ("the grinder"). Midwest is an Illinois corporation with its principal place of business in Roselle, Illinois. Midwest markets industrial machine tools. PTM is a Massachusetts corporation with its principal place of business in Westfield, Massachusetts. Federal jurisdiction is based on diversity of citizenship, 28 U.S.C. § 1332.

In Count I of its complaint, Midwest alleges that PTM breached an agreement between Midwest and PTM for the purchase of the grinder. In Count II, Midwest alternatively alleges that PTM tortiously interfered with a purchase and sale agreement between Midwest and the Shawmut Bank of Boston, Massachusetts.

In support of its breach of contract count, Midwest alleges that in November, 1982. PTM agreed to purchase the grinder from Midwest for the sum of $345,500. The discussions between Midwest and PTM personnel took place at the offices of Midwest in Roselle, Illinois. Later, and at PTM's request, Midwest alleges that it (1) made alterations to the grinder in order to conform to PTM's particular needs; (2) manufactured fixtures and tooling for use by PTM with the grinder; (3) trained PTM employees in the operation of the grinder and (4) arranged for the grinder to be shipped from Illinois to PTM's plant in Massachusetts.

Midwest further alleges that prior to delivery of the grinder, PTM and the Shawmut Bank of Boston, Massachusetts, agreed that Shawmut Bank would purchase the grinder from Midwest and then lease the grinder to PTM. After receiving the purchase order for the grinder from Shawmut Bank (Complaint at Exhibit B), Midwest delivered the grinder to PTM at its Massachusetts plant on January 25, 1983. PTM, however, refused to accept delivery of the grinder because it had been damaged during shipment. PTM also refused to accept Midwest's offer to remedy defects in the grinder.

Count II of the complaint alleges that PTM tortiously interfered with Midwest's contractual relationship with the Shawmut Bank by wrongfully refusing to accept delivery of the grinder.

II. DISCUSSION

In ruling upon a motion to transfer under 28 U.S.C. § 1404(a), the Court may consider only undisputed facts presented to the Court by affidavit, deposition, stipulation or other relevant documents. Kisko v. Penn Central Transportation Co., 408 F. Supp. 984, 986 (M.D.Pa. 1976). Mere allegations, standing alone, cannot be taken as proof of facts alleged in support of the motion. Id. Although the party seeking transfer bears the burden of persuasion that transfer is proper, the burden under § 1404(a) is substantially less than a transfer under the doctrine of forum non conveniens. Norwood v. Kirkpatrick, 349 U.S. 29, 75 S.Ct. 544, 99 L.Ed. 789 (1955).

Before a transfer can be made under § 1404(a), the movant must establish that (1) venue is proper in the transferor court; (2) venue is proper in the transferee court and (3) the transfer is for the "convenience of parties and witnesses, in the interest of justice." Chicago, R.I. & P.R. Co. v. Igoe, 212 F.2d 378, 379 n. 1 (7th Cir. 1954); Hess v. Gray, 85 F.R.D. 15, 24 (N.D.Ill. 1979). District courts are given broad discretion in determining whether a transfer under § 1404(a) is proper. Piper Aircraft Co. v. Reyno, 454 U.S. 235, 253, 102 S.Ct. 252, 264, 70 L.Ed.2d 419, (1981); Chicago, R.I. & P.R. Co. v. Igoe, 212 F.2d 378, 379 n. 1 (7th Cir. 1954).

When federal jurisdiction is founded solely upon diversity of citizenship, venue is proper in the judicial district where all plaintiffs or all defendants reside, or in which the claim arose. 28 U.S.C. § 1391(a). A corporation, for venue purposes, is a resident of its state of incorporation, of any state where it is licensed to do business, and of any state where it is doing business. 28 U.S.C. § 1391(c). In this case, Midwest, the only plaintiff, is incorporated in Illinois and doing business in the Northern District of Illinois. PTM, the only defendant, is incorporated and doing business in Massachusetts. The claim arose in Massachusetts. Venue, therefore, is proper in the transferor court (Northern District of Illinois) and the transferee court (District of Massachusetts).

A. Convenience of the Parties

Midwest's choice of a forum is entitled to substantial weight unless that forum lacks any significant contact with the underlying cause of action. Cunningham v. Cunningham, 477 F. Supp. 632, 634 (N.D.Ill. 1979). Midwest is a resident of the Northern District of Illinois and PTM is a resident of the District of Massachusetts. Although Massachusetts clearly has a more significant relationship to this action than Illinois, it cannot be said at this juncture that Illinois lacks any significant contact with the underlying cause of action. ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.