Tuesday, December 14, 2010

Plaintiff's Incorporation in EDTX Four Months Before Filing Suit Does Not Compel Transfer of Venue

In denying defendants' motion to transfer venue the court found that plaintiff's incorporation in Texas four months before filing suit did not weigh against transfer. "[S]ince [plaintiff] filed its complaint four months after incorporation, [its] formation in Texas is not 'recent' under Federal Circuit precedent. Further, [plaintiff] has established . . . that two of [its] three principals live in Texas. . . . Therefore, [plaintiff's] connections to Texas will be given some weight. Furthermore, there is no reason to believe [plaintiff] transported documents to Texas to create venue, as Defendants contend. . . . The Court recognizes that [plaintiff] may be in the process of transporting documents from Illinois to Texas. The Court concludes, however, that these documents are not being transported to manipulate venue, but rather to aid in normal business functions, functions that originated in Texas."

NovelPoint Learning LLC v. Leapfrog Enterprises, Inc., et. al., 6-10-cv-00229 (TXED December 6, 2010, Order) (Love, M.J.)

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