10.25.2003

Federal Agency's Choice Of Forum Entitled To Same Weight As Non-Government Plaintiff

Under traditional forum non conveniens analysis, a plaintiff's choice of forum will rarely be disturbed unless the balance is strongly in favor of the defendant. However, the Seventh Circuit recently considered a matter of first impression: when the plaintiff is a federal agency, how much weight should be given to its choice of forum. In re Nat'l Presto Industries, Inc., No. 03-1873, 2003 WL 22389815 (Oct. 21, 2003).


The SEC sued National Presto Industries in federal court in Chicago, although defendant was based in Eau Claire, Wisconsin. Defendant moved for transfer of venue, but the district court denied the motion in an interlocutory order not ordinarily appealable. Defendant sought mandamus in the Seventh Circuit. In considering the case, the Seventh Circuit rejected as "unrealistic" the argument that the federal government has such vast resources that no venue could ever be thought to be inconvenient. "Federal agencies have limited resources, and the SEC in particular is often outgunned by the affluent defendants that it sues." The court credited the SEC with choosing to bring the case in a federal district in which the SEC's closest regional office resided.


Having said that, the court concluded that the balance of conveniences in this particular case was a close call that might actually favor defendant. Nevertheless, noting the heavy burden on mandamus, the appellate court held that even though defendant might be able to satisfy the irreparable harm requirement in a denial of a forum non conveniens motion, and even though the balance actually might favor defendant, the balance was not sufficiently "askew as to justify the extraordinary relief" sought through the writ of mandamus.

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