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Gilbert v. Gulf Oil Corp.

Supreme Court of the United States · 1947 · Civil Procedure

Civil Procedureforum non conveniensvenuediversity jurisdictionforum non conveniensvenuediversitydismissal

Facts

Plaintiff, a resident of Lynchburg, Virginia, operated a public warehouse there and alleged that defendant carelessly handled a gasoline delivery in Lynchburg, causing an explosion and fire. He sued in the Southern District of New York for damages to his warehouse, merchandise, business, and customers' property. Defendant was a Pennsylvania corporation authorized to do business in both Virginia and New York and argued that Virginia was the appropriate forum because plaintiff lived there, the events occurred there, most witnesses were there, and both state and federal courts in Virginia could obtain jurisdiction over defendant. The case involved no federal question and rested solely on diversity jurisdiction.

Issue

Whether a federal district court has inherent power to dismiss a case under the doctrine of forum non conveniens even when jurisdiction and venue are proper, and, if so, whether dismissal was a proper exercise of that power in this case.

Rule

A federal court may, in exceptional circumstances, decline to exercise jurisdiction under the doctrine of forum non conveniens even though jurisdiction and venue are proper. In deciding whether to do so, the court balances private interest factors, such as access to proof, witness availability and cost, ability to compel attendance, possibility of view of premises, enforceability of judgment, and other practical trial problems, together with public interest factors, such as court congestion, burden on jurors, local interest in localized controversies, and the appropriateness of trying a diversity case in a forum familiar with the governing state law. Unless the balance is strongly in favor of the defendant, the plaintiff's choice of forum should rarely be disturbed.

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One of 10 multiple-choice questions for this case. Pick an answer to see why.

Nina Mercado, a resident of Tulsa, sued Red Mesa Chemicals, a Nevada corporation registered to do business in Illinois and Oklahoma, in federal court in Chicago after a storage-tank leak allegedly damaged her Tulsa print shop. Venue and personal jurisdiction in Chicago are proper because the company consented to service there, but all operative events, local inspectors, employees, and physical evidence are in Oklahoma, where the company is also amenable to suit.

How should the Chicago federal court analyze Red Mesa Chemicals' motion to dismiss on forum non conveniens grounds?

Explanation. The majority held that forum non conveniens may apply even when jurisdiction and venue are proper. The doctrine presupposes at least two available forums and allows the court, in exceptional circumstances, to decline jurisdiction after balancing private and public interest factors. A defendant's consent to be sued in the chosen forum gives personal jurisdiction, but it does not strip the court of discretion to dismiss when another forum is far more appropriate. (Derived from Gilbert v. Gulf Oil Corp. (n.d.).)