Ferens v. John Deere Co.
Facts
Ferens lost his right hand in Pennsylvania while using a combine harvester manufactured by Deere. After Pennsylvania's 2-year tort limitations period expired, the Ferenses filed contract and warranty claims in federal court in Pennsylvania and separately filed negligence and products liability claims in federal court in Mississippi, where venue and diversity jurisdiction were proper and where Mississippi's 6-year statute of limitations would apply to the tort action. The Ferenses then moved under § 1404(a) to transfer the Mississippi tort suit to Pennsylvania for convenience, expecting Mississippi choice-of-law rules, including its limitations rule, to follow the case. The Pennsylvania federal court refused to apply Mississippi's statute of limitations and dismissed the tort action as time-barred.
Issue
When a plaintiff in a diversity case files in one proper federal district and then successfully moves under 28 U.S.C. § 1404(a) to transfer the case to another federal district for convenience, must the transferee court apply the choice-of-law rules of the transferor court or those of the transferee court?
Rule
A transfer under 28 U.S.C. § 1404(a) does not change the law applicable to a diversity case. The transferee court must apply the law, including the choice-of-law rules, that would have been applied in the transferor court, regardless of who initiated the transfer.
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After the transfer, which law should the Ohio federal court apply to determine the applicable state limitations rule?