Fan v. California University - Silicon Valley

Background

Lingling Fan, who was proceeding without a lawyer, asserted claims under California state law and the civil provisions of the Racketeer Influenced and Corrupt Organizations Act (RICO). She named California University – Silicon Valley (CUSV), Ivie Chen, and Philip Yang as defendants. Fan provided a Sunnyvale, California address for the defendants. She alleged that the defendants defrauded her, refused to provide her diploma and official transcripts, and misled her about a college program at CUSV. She also alleged that these events affected her ability to obtain a professional license in New York and described an illegal lockout and burglary there.

Venue analysis

For the state-law claims, the court applied the general federal venue statute, 28 U.S.C. § 1391. The court explained that a case generally may be filed where a defendant resides, where a substantial part of the events occurred, or, if neither applies, where a defendant is subject to the court’s personal jurisdiction. For the RICO claims, the court applied 18 U.S.C. § 1965(a), which generally permits a civil RICO case where a defendant resides, is found, has an agent, or transacts business.

The court concluded that Fan did not allege that any defendant resided in New York or conducted business there. It also found that a substantial part of the events underlying the claims occurred in Sunnyvale, where CUSV was located and where the individual defendants worked. The court therefore determined that venue was not proper in the Southern District of New York and that the Northern District of California was a proper venue.

Ruling

Under 28 U.S.C. § 1406(a), when a case is filed in the wrong venue, the court may dismiss it or, in the interest of justice, transfer it to a district where it could have been brought. Judge Laura Taylor Swain ordered the action transferred to the United States District Court for the Northern District of California. The order closed the case in the Southern District of New York, directed the clerk to terminate all pending motions, and left Fan’s motion for a temporary restraining order and motion to seal for the transferee court. The court also stated that the transferee court would decide whether Fan could proceed without prepaying fees, directed that no summons issue from the New York court, and denied fee-free status for purposes of an appeal after certifying that an appeal would not be taken in good faith.