Archer v. UnitedHealthcare Services Incorporated

District Court, N.D. Illinois

Archer v. UnitedHealthcare Services Incorporated

Trial Court Opinion

1 WO 2 3 4 5 6 IN THE UNITED STATES DISTRICT COURT 7 FOR THE DISTRICT OF ARIZONA

8

9 Scott M. Archer, No. CV-20-02458-PHX-JJT

10 Plaintiff, ORDER

11 v.

12 UnitedHealthcare Services Incorporated, et al., 13 Defendants. 14 15 At issue are Defendant Shirley Ryan AbilityLab’s (“SRALab”) Motion to Dismiss 16 for Lack of Personal Jurisdiction (Doc. 43), to which Plaintiff Scott M. Archer filed a 17 Response (Doc. 47) and Defendant filed a Reply (Doc. 50); and Plaintiff’s Motion to 18 Transfer Claims Against Defendant to Northern District of Illinois (Doc. 48), to which 19 Defendant filed a Response (Doc. 51).1 The Court has reviewed the parties’ briefs and finds 20 these matters appropriate for decision without oral argument. See LRCiv 7.2(f). 21 I. LEGAL STANDARD 22

28 U.S.C. § 1631

provides that where a court lacks jurisdiction over a matter, it shall 23 transfer the matter “to any other such court . . . in which the action . . . could have been 24 brought at the time it was filed if it is in the ‘interest of justice.’”

28 U.S.C. § 1631

(2021); 25 Cruz-Aguilera v. I.N.S.,

245 F.3d 1070

, 1074 (9th Cir. 2001). Venue is proper where “any 26 defendant resides” or where “a substantial part of the events or omissions giving rise to the 27 claim occurred.”

28 U.S.C. § 1391

(b). 28 1 Because the Court grants Plaintiff’s Motion to Transfer, it did not await Plaintiff’s Reply. 1 II. ANALYSIS 2 A. Plaintiff’s Request to Transfer 3 As a threshold matter, Plaintiff agrees this Court lacks jurisdiction over SRALab 4 (Doc. 47 at 1), but instead of dismissal requests transfer to the Northern District of Illinois 5 (Doc. 48). In his Motion to Transfer (Doc. 48), Plaintiff impliedly requests severance of 6 his claims against Defendant SRALab because his claims against the other Defendants 7 properly reside in this venue. Federal Rule of Civil Procedure 21 allows the Court to sua 8 sponte “sever any claim against a party.” Fed. R. Civ. P. 21. Severance is appropriate in 9 this case and the Court will grant the Motion to Transfer for the following reasons. 10 Defendant concedes that the Northern District of Illinois is a proper venue. (Doc. 51 11 at 1.) All of Plaintiff’s claims against SRALab occurred in the Northern District of Illinois 12 (Doc. 43 at 2-4), and its principal place of business is in the Northern District of Illinois. 13 But Defendant argues in its Response (Doc. 51 at 1-2) that the Court should dismiss 14 and require Plaintiff to refile in the Northern District of Illinois. This has substantially the 15 same effect as the more judicially efficient option of transferring the case. Defendant also 16 asserts that there is a threat of “duplicitous litigation” if Plaintiff recovers against different 17 Defendants in both Arizona and Illinois. This is unpersuasive, as each Court will calculate 18 damages accordingly. See Sea-Land Servs., Inc. v. Gaudet,

414 U.S. 573

, 592 n.29 (1974) 19 (it is within the discretion of the trial court to adjust damages to prevent double recovery). 20 Additionally, Plaintiff has brought different claims against Defendant SRALab than 21 against the other Defendants, so severance and transfer will not likely place double 22 recovery at issue. 23 This Court severed and transferred in a prior similar case, Humphries v. Allstate 24 Insurance Company, Case No. CV-17-01606-PHX-JJT. While the Ninth Circuit noted that 25 neither it nor the Supreme Court have addressed whether a severance and partial transfer 26 is appropriate, the court stated that the “risk of unnecessary trial” was insufficient reason 27 for mandamus relief of this Court’s Order. In re Humphries,

756 F. App'x 762

, 763 (9th 28 Cir. 2019). The court finds no prejudice to Defendant in severing and transferring its claims 1 || against SRALab to the Northern District of Illinois. Were the Court to grant Defendant’s 2|| motion, Plaintiff would be required to refile in the alternative forum, resulting in || inefficiency for both Plaintiff and the Court. This is contrary to the directive of Rule 1 of 4|| the Federal Rules of Civil Procedure, which provides that proceedings be as inexpensive 5|| and efficient as possible. Fed. R. Civ. P. 1; see, e.g., Goldlawr, Inc. v. Heiman, 369 U.S. || 463, 467 (1962) (stating that a mistake on the part of the plaintiff when choosing a venue 7|| should not be punished with “time consuming and justice-defeating technicalities’’). 8 || Rather, it serves the interest of justice to transfer the case.

Id.

9 For the reasons stated above, the Court finds it is in the interest of justice to transfer Plaintiff's claims against Defendant SRALab only to the Northern District of Illinois 11 || pursuant to

28 U.S.C. § 1631

. The remaining claims against other Defendants shall remain || pending before this Court. 13 IT IS THEREFORE ORDERED granting in part Defendant SRALab’s Motion to 14|| Dismiss for Lack of Personal Jurisdiction (Doc. 43). 15 IT IS FURTHER ORDERED granting Plaintiff's Motion to Transfer Claims || Against Defendant [SRALab] to the Northern District of Illinois (Doc. 48). 17 IT IS FURTHER ORDERED severing Plaintiff's claims against Defendant 18 || Rehabilitation Institute of Chicago dba as SRALab and directing the Clerk of Court to transfer those claims to the Northern District of Illinois as soon as is practicable. Plaintiff’ s 20 || claims against other Defendants shall remain pending in this Court. 21 Dated this 7th day of February, 2022. CN 22 “wok: 73 United StatesDistrict Judge 24 25 26 27 28

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