Both v. MAV Group, LLC

Background

John Both, who resides in Malverne, New York, brought this action without a lawyer against MAV Group LLC and Anneleisa G. McDonald. He invoked diversity jurisdiction and federal-question jurisdiction, asserting claims under the Racketeer Influenced and Corrupt Organizations Act (RICO). Both alleged that he contracted with the defendants to supply biosensors and mobile phones. He said the contract required the defendants to return the phones after the contract period or pay $200 per phone, and alleged that they failed to do so. He also alleged that the defendants submitted fraudulent insurance claims for the equipment.

Venue Analysis

The court explained that, under the general federal venue statute, a civil action may be brought where a defendant resides, where a substantial part of the events or omissions occurred, or, in limited circumstances, where a defendant is subject to the court’s personal jurisdiction. The court also explained that civil RICO claims may be brought where a defendant resides, is found, has an agent, or transacts business.

The court concluded that venue was not proper in the Southern District of New York under the general venue statute. The defendants were alleged to be in Las Vegas, Nevada, and the complaint did not suggest that any part of the events giving rise to the claims occurred in the Southern District of New York. The court concluded that venue was proper in the District of Nevada based on the defendants’ residence and where the claims arose. It also concluded that venue for the civil RICO claim was proper there.

Ruling

In the interest of justice, the court transferred the action to the United States District Court for the District of Nevada under the federal transfer statutes. The Clerk was directed to transfer the action, and the order stated that the case was closed in the Southern District of New York. The Nevada court was left to decide whether Both could proceed without paying fees in advance. The Southern District of New York also directed that no summons issue from that court.

Judge Laura Taylor Swain certified that any appeal from the order would not be taken in good faith and denied fee-free status for purposes of an appeal. The order transferred the case based on venue and did not decide the merits of Both’s contract or RICO allegations.