## Facts

- Angela Graham, an Oklahoma resident, was working as a civilian at Camp Davis, a U.S. military base in Afghanistan.
- On April 10, 2011, Graham was inside a portable laundry container when a vehicle driven by an employee of DynCorp International, LLC struck the container.
- Graham alleged the collision caused serious injuries, including injuries to her back, neck, and jaw.
- An accident worksheet attributed the incident to inattentive driving and indicated the accident was drug- or alcohol-related.
- Graham filed a negligence suit in the U.S. District Court for the Southern District of Texas, initially naming DynCorp International, Inc. as the defendant.
- After DynCorp International, Inc. moved to dismiss for improper venue (or alternatively to transfer), Graham amended her complaint to add DynCorp International, LLC; DynCorp International, LLC filed a similar venue motion.
- Graham relied on DynCorp’s business ties to the Southern District of Texas, including NASA-related contracts, to support venue there.
- DynCorp submitted evidence that its business in the Southern District of Texas accounted for about 1.2% of its overall revenue and argued its contacts were not sufficient to make venue proper there.
- DynCorp also showed substantial contacts with the Northern District of Texas (including a large Fort Worth office, an agent for service of process, use of external auditors, and services provided under a contract with an Air Force base).
- If the court transferred under 28 U.S.C. § 1406(a), DynCorp requested transfer to the Eastern District of Virginia, where its headquarters was located.

## Issues

1. Whether venue was proper in the Southern District of Texas for DynCorp International, Inc. and DynCorp International, LLC under 28 U.S.C. § 1391.
2. If venue was improper, whether the court should dismiss or transfer under 28 U.S.C. § 1406(a), and which district was an appropriate transferee forum.

## Decision

- The court held venue in the Southern District of Texas was improper for both DynCorp International, Inc. and DynCorp International, LLC.
- The court dismissed DynCorp International, Inc. from the case.
- The court transferred the claims against DynCorp International, LLC to the U.S. District Court for the Northern District of Texas, Fort Worth Division, under 28 U.S.C. § 1406(a), rather than transferring to the Eastern District of Virginia.

## Legal Principles

- After a defendant challenges venue under Federal Rule of Civil Procedure 12(b)(3), the plaintiff bears the burden of showing the chosen venue is proper.
- Under 28 U.S.C. § 1391(b), venue generally lies in (1) a district where any defendant resides (if all defendants reside in the same state), (2) a district where a substantial part of the events or omissions giving rise to the claim occurred, or (3) a fallback district if no district satisfies (1) or (2).
- When the operative events occurred outside the United States, § 1391(b)(2) will not support venue in a plaintiff-selected U.S. district based on forum contacts unrelated to the injury.
- For entity defendants in a state with more than one federal district, the venue “residence” inquiry focuses on whether the entity’s contacts with the particular district are sufficient (as if the district were a separate state) to treat it as residing there for venue purposes.
- Limited business activity in a district—such as a small share of overall revenue from contracts performed there—may be insufficient to establish venue based on residence in that district.
- When venue is improper, 28 U.S.C. § 1406(a) authorizes the court to dismiss the action or, in the interest of justice, transfer it to any district where the action could have been brought.
- A court may dismiss one defendant while transferring claims against another defendant if the venue analysis and available proper venues differ by entity, and the court may select a transferee district other than the one requested if the chosen district is a proper forum.

## Conclusion

Because the accident occurred in Afghanistan and Graham did not show that either DynCorp International, Inc. or DynCorp International, LLC had district-specific contacts sufficient to make the Southern District of Texas a proper venue under § 1391, the court found venue improper, dismissed DynCorp International, Inc., and transferred the remaining claims against DynCorp International, LLC to the Northern District of Texas (Fort Worth Division) under § 1406(a).


Graham v. Dyncorp International, Inc., 973 F. Supp. 2d 698 (2013)