Civil Procedure Keyed to Cound
Stewart Organization, Inc. v. Ricoh Corp
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Stewart, Plaintiff, sued Ricoh Corp., Defendant, in federal court in Alabama based on diversity of citizenship. Defendant asked the federal court to use its discretion under 28 U.S.C. Section: 1404(a) to honor the forum selection clause and transfer the case to New York, or, alternatively, to dismiss the case for improper venue based on 28 USC Section: 1406. The District Court denied the motion, stating that the case is governed by Alabama law and Alabama disfavors forum selection clauses. The District Court certified the ruling for interlocutory appeal and the Court of Appeals accepted jurisdiction. A panel of the Court of Appeals reversed, stating venue questions are governed by federal law, and that the clause was enforceable as a matter of federal law. The Court of Appeals reversed and remanded to transfer the case to New York. The Court of Appeals en banc affirmed the panel’s decision. Plaintiff appealed.
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