Source: https://openjurist.org/369/us/463
Timestamp: 2019-04-26 06:07:48+00:00

Document:
Nothing in that language indicates that the operation of the section was intended to be limited to actions in which the transferring court has personal jurisdiction over the defendants. And we cannot agree that such a restrictive interpretation can be supported by its legislative history—either that relied upon by the Court of Appeals10 or any other that has been brought to our attention. The problem which gave rise to the enactment of the section was that of avoiding the injustice which had often resulted to plaintiffs from dismissal of their actions merely because they had made an erroneous guess with regard to the existence of some elusive fact of the kind upon which venue provisions often turn. Indeed, this case is itself a typical example of the problem sought to be avoided, for dismissal here would have resulted in plaintiff's losing a substantial part of its cause of action under the statute of limitations merely because it made a mistake in thinking that the respondent corporations could be 'found' or that they 'transact * * * business' in the Eastern District of Pennsylvania.11 The language and history of § 1406(a), both as originally enacted12 and as amended in 1949,13 show a congressional purpose to provide as effective a remedy as possible to avoid precisely this sort of injustice.
The language of § 1406(a) is amply broad enough to authorize the transfer of cases, however wrong the plaintiff may have been in filing his case as to venue, whether the court in which it was filed had personal jurisdiction over the defendants or not. The section is thus in accord with the general purpose which has prompted many of the procedural changes of the past few years—that of removing whatever obstacles may impede an expeditious and orderly adjudication of cases and controversies on their merits. When a lawsuit is filed, that filing shows a desire on the part of the plaintiff to begin his case and thereby toll whatever statutes of limitation would otherwise apply. The filing itself shows the proper diligence on the part of the plaintiff which such statutes of limitation were intended to insure. If by reason of the uncertainties of proper venue a mistake is made, Congress, by the enactment of § 1406(a), recognized that 'the interest of justice' may require that the complaint not be dismissed but rather that it be transferred in order that the plaintiff not be penalized by what the late Judge Parker aptly characterized as 'time-consuming and justice-defeating technicalities.'14 It would at least partially frustrate this enlightened congressional objective to import ambiguities into § 1406(a) which do not exist in the language Congress used to achieve the procedural reform it desired.
The Court of Appeals erred in upholding the District Court's order dismissing this action as to these two corporate defendants. The judgment of the Court of Appeals is accordingly reversed.
In these circumstances I think the matter is better left for further action by Congress, preferably after the Judicial Conference of the United States has expressed its views on the subject. Cf. Miner v. Atlass, 363 U.S. 641, 650—652, 80 S.Ct. 1300, 1307, 4 L.Ed.2d 1462. Meanwhile, substantially for the reasons elaborated in the opinion of Judge Moore, 288 F.2d 579, I would affirm the judgment of the Court of Appeals.
26 Stat. 209, as amended, 15 U.S.C. §§ 1 and 2, 15 U.S.C.A. §§ 1 and 2.
38 Stat. 731, 15 U.S.C. § 15, 15 U.S.C.A. § 15.
The District Court also found venue improper as to a number of individual defendants, but that fact is not relevant to any issue properly before us. See note 6, infra.
The Pennsylvania District Court also transferred the action against the individual defendants as to whom venue had been found improper. Only one of these, Marcus Heiman, moved in the New York District Court to have the action dismissed as to him for lack of power in the transferring court. Heiman's motion was granted on this ground and on a second entirely independent ground. The Court of Appeals affirmed the dismissal as to Heiman on both grounds and the petitioner did not seek certiorari as to the second and independent ground, The writ is therefore dismissed as to Heiman.
Goldlawr v. Shubert, D.C., 175 F.Supp. 793.
See Internatio-Rotterdam, Inc., v. Thomsen, 4 Cir., 218 F.2d 514; Orion Shipping & Trading Co. v. United States, 9 Cir., 247 F.2d 755; Amerio Contact Plate Freezers, Inc., v. Knowles, 107 U.S.App.D.C. 81, 274 F.2d 590; Hayes v. Livermont, 108 U.S.App.D.C. 43, 279 F.2d 818.
368 U.S. 810, 82 S.Ct. 33, 7 L.Ed.2d 19.
Senate Report No. 303, 81st Cong., 1st Sess., U.S.Code Cong.Service 1940, p. 1253, discussed by the court below at 288 F.2d 579, 583.
As illustrating the difficulties which may arise in determining where corporations can be found or transact business, see Polizzi v. Cowles Magazines, Inc., 345 U.S. 663, 73 S.Ct. 900, 97 L.Ed. 1331; International Shoe Co. v. Washington, 326 U.S. 310, 66 S.Ct. 154, 90 L.Ed. 95.
Internatio-Rotterdam, Inc., v. Thomsen, 4 Cir., 218 F.2d 514, 517.
In an ordinary diversity suit, for example, a plaintiff may bring suit in the judicial district where he resides. 28 U.S.C. § 1391(a), 28 U.S.C.A. § 1391(a). But if he is unable to get personal service on the defendant in the territory defined by Fed.Rule Civ.Proc. 4(f), 28 U.S.C.A., his suit will be dismissed. See Robertson v. Railroad Labor Board, 268 U.S. 619, 45 S.Ct. 621, 69 L.Ed. 1119; cf. Mississippi Publishing Corp. v. Murphree, 326 U.S. 438, 442—443, 66 S.Ct. 242, 245, 90 L.Ed. 185. Since this would not be 'a case laying venue in the wrong division or district,' § 1406(a) would be inapplicable.

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