Saunders v. Saunders
Saunders v. Saunders
Opinion of the Court
[¶1] Appellant Mark A. Saunders appeals from the district court's order dismissing his divorce action against Appellee Sybil H. Saunders on the grounds of improper venue and/or forum non conveniens . The district court erred by dismissing Mr. Saunders' action for improper venue, and it did not apply the proper test when it dismissed for forum non conveniens . Consequently, we reverse and remand for further proceedings.
ISSUES
[¶2] The issues on appeal are:
1. Whether the district court erred by dismissing Mr. Saunders' divorce complaint for improper venue under W.R.C.P. 12(b)(3).
2. Whether the district court erred by dismissing Mr. Saunders' divorce complaint under the doctrine of forum non conveniens.
FACTS
[¶3] The Saunders married in North Carolina in 1989. On February 9, 2018, Mr. Saunders filed a complaint for divorce in the district court in Fremont County, Wyoming.
*995Mr. Saunders stated he lived in Fremont County and had resided in the State of Wyoming for more than sixty days immediately preceding his filing of the complaint. He also stated two children were born as issue of the marriage, but they were adults. Mr. Saunders requested the district court grant him a divorce from Mrs. Saunders and equitably divide their marital property. Mrs. Saunders was served with the complaint and summons in North Carolina on February 20, 2018.
[¶4] On February 21, 2018, Mrs. Saunders filed a divorce complaint in North Carolina. That document is not part of the record on appeal, but her amended complaint, which she filed on April 9, 2018, is included in the record. Mrs. Saunders then filed a motion to dismiss the Wyoming action pursuant to W.R.C.P. 12(b)(3),
[¶5] Mrs. Saunders filed a personal affidavit in support of her motion to dismiss. She declared the parties had lived together in North Carolina and had never resided in Wyoming as a married couple. Mrs. Saunders also stated Mr. Saunders has interests in approximately forty-four North Carolina businesses. According to her, he had engaged in extensive business dealings and real estate ventures in southeastern North Carolina for over thirty years, including a business named "Mark Saunders Luxury Homes," which has "a significant number of employees[.]" Mrs. Saunders stated Mr. Saunders and/or his companies were involved in thousands of real estate transactions over an unidentified period of time.
[¶6] As for liabilities, Mrs. Saunders stated Mr. Saunders' businesses were involved in "a great number of lawsuits" and there was an outstanding lien of $74,000,000, although it is unclear who the lien had been filed against. She also stated the parties had a federal tax lien of $3,000,000 filed against them in North Carolina and Wyoming. Mrs. Saunders claimed the "identification, classification, and evaluation of all marital assets, together with the number of competent witnesses who may testify in the ... action[ ] are primarily from the State of North Carolina." She asserted, given the complex nature of the marital properties and debts, North Carolina would be the "most convenient forum to litigate" the issues associated with their divorce.
[¶7] In his verified response, Mr. Saunders claimed the district court in Fremont County had jurisdiction over the subject matter and parties. He recognized Mrs. Saunders had filed a complaint in North Carolina but stated he had not been served with process in that suit. Mr. Saunders also admitted he continued to have significant business and personal connections in North Carolina. He conceded there were pending lawsuits against him and his business entities and a federal tax lien had been filed in North Carolina and Wyoming against the parties. He did not specifically deny the $74,000,000 lien but stated the documents from the Register of Deeds, which were apparently on the thumb drive, see supra n.2, speak for themselves.
[¶8] Mr. Saunders claimed to have moved permanently to Wyoming and to have substantial real property and business interests in this State. He averred he had possessed *996and operated a ranch in Wyoming for over thirteen years and had interests "in at least 10 Wyoming-based business entities." Mr. Saunders asserted his choice of Wyoming as the forum to litigate the divorce was entitled to deference.
[¶9] The North Carolina court stayed Mrs. Saunders' divorce action "until the determination of venue and any other possible jurisdictional matters are resolved by the Wyoming Courts." After a hearing, the district court in this case issued an order granting Mrs. Saunders' "Motion[ ] to Dismiss for Improper Venue." Mr. Saunders appealed.
STANDARD OF REVIEW
[¶10] We generally review a district court's rulings regarding venue and forum non conveniens for abuse of discretion. Bourke v. Grey Wolf Drilling Co., LP,
Judicial discretion is a composite of many things, among which are conclusions drawn from objective criteria; it means a sound judgment exercised with regard to what is right under the circumstances and without doing so arbitrarily or capriciously.
Burnham, ¶ 5,
[¶11] Given Mrs. Saunders filed a Rule 12(b)(3) motion to dismiss, the court generally accepts the well-pleaded facts in Mr. Saunders' complaint as being true. See Espinoza v. Evergreen Helicopters, Inc.,
DISCUSSION
[¶12] Mr. Saunders' complaint stated he had been a Wyoming resident for more than sixty days immediately preceding his filing and he resided in Fremont County.
(a) No divorce shall be granted unless one of the parties has resided in this state for sixty (60) days immediately preceding the time of filing the complaint, or the marriage was solemnized in this state and one of the parties has resided in this state from the time of the marriage until the filing of the complaint.
(b) A married person who at the time of filing a complaint for divorce resides in this state is a resident although his spouse may reside elsewhere.
[¶13] Mrs. Saunders did not dispute the district court had jurisdiction over the action pursuant to § 20-2-107. She also acceded to the court's personal jurisdiction over her. Mrs. Saunders asserted, however, North Carolina was the more appropriate forum for the parties' divorce and the distribution of their marital property. Her motion to dismiss the action and the district court's order referenced two distinct concepts-statutory venue and forum non conveniens. We will address each, in turn.
Statutory Venue
[¶14] Venue is a modern legal concept referring to the county, district, or other geographical location where, " 'for the sake of fairness, convenience, or other commanding policy considerations, a cause is to be tried.' "
*997Sundance Mountain Resort, Inc. v. Union Tel. Co.,
[¶15] Although the district court dismissed Mr. Saunders' complaint for improper venue, it did not mention § 20-2-104 in its order. Mr. Saunders claims the district court erred as a matter of law by dismissing his divorce action on the grounds of improper venue when he filed his complaint in a county allowed by § 20-2-104. Mrs. Saunders responds § 20-2-104 is permissive because it uses the word "may," and, therefore, does not mandate a divorce be filed in the district court of a county "in which either party resides." She suggests the statute allows a divorce to be filed elsewhere, including in another state.
[¶16] We addressed a similar argument in Bourke, ¶¶ 16-22,
[¶17] The same is true of § 20-2-104. Although the statute uses the word "may," it is permissive only to the extent it allows a plaintiff to choose between the counties where the parties reside. See generally , Linch, ¶¶ 25-26,
[¶18] Mrs. Saunders does not direct us to any Wyoming statute allowing dismissal or transfer of a divorce action simply because venue would be more appropriate in another state.
[¶19] The cases cited by Mrs. Saunders recite the general definition of venue but resolve the issues presented by reference to the relevant venue statutes. See Sundance Mountain Resort, ¶ 10,
*998[¶20] Fremont County was the proper venue within Wyoming; therefore, to the extent the district court dismissed Mr. Saunders' divorce action for improper venue, it erred. See Burnham, ¶ 5,
Forum Non Conveniens
[¶21] Under the doctrine of forum non conveniens, "a court, even though it has jurisdiction, [may decline to] entertain the suit if it believes itself to be a seriously inconvenient forum[,] provided that a more appropriate forum is available to the plaintiff." Restatement (Second) Conflict of Laws § 84 (1971, updated 2019). The doctrine "allows a court to decline to exercise jurisdiction when the plaintiff's chosen forum is significantly inconvenient and the ends of justice would be better served if the action were brought and tried in another forum." Kedy v. A.W. Chesterton Co.,
1. Wyoming Precedent Regarding Forum Non-Conveniens
[¶22] This Court mentioned common law forum non conveniens in a few cases in the 1970s. In Booth,
[¶23] This Court finally considered forum non conveniens on the merits in 1991 when we decided West Texas Utilities Co. v. Exxon Coal USA, Inc.,
[¶24] West Texas claimed the district court should have dismissed the case for forum non conveniens because it involved "a dispute between two Texas companies over a contract executed in Texas" and, therefore, should be litigated in Texas.
[¶25] Mr. Saunders argues that, while our precedent confirms Wyoming courts have authority to deny a motion to dismiss for forum non conveniens, we have never recognized the right of a court to grant a motion to dismiss on that basis. It is true we have never affirmed a forum non conveniens dismissal. However, that does not mean Wyoming courts do not have the authority to do so. If we did not intend to allow relief for forum non conveniens, we would have ruled the doctrine does not apply in Wyoming. See 20 Am. Jur. 2d Courts § 109 (each state decides the extent to which forum non conveniens applies). Furthermore, in Durdahl v. National Safety Associates, Inc.,
2. Standard for Application of Forum Non Conveniens
[¶26] A review of authorities from other jurisdictions demonstrates West Texas does not fully address the forum non conveniens doctrine. The majority of jurisdictions follow a more structured two-stage forum non conveniens test originally articulated by the United States Supreme Court in Gulf Oil Corp.,
[¶27] In the first stage, the court determines whether an alternate forum is available and capable of providing relief. Espinoza,
[¶28] In the second stage, the court balances the private and public interests to determine whether it should grant the motion to dismiss for forum non conveniens . Gulf Oil,
[¶29] In analyzing the parties' private interests, the court will weigh the relative advantages of trying the case in the plaintiff's chosen forum against the obstacles to the defendant obtaining a fair trial. Gulf Oil,
"[T]he relative ease of access to sources of proof; availability of compulsory process for attendance of unwilling, and the cost of obtaining attendance of willing, witnesses; possibility of view of premises, if view would be appropriate to the action; ... all other practical problems that make trial of *1000a case easy, expeditious and inexpensive[;] * * * [and] the enforceability of a judgment if one is obtained."
[¶30] As part of the second stage of the forum non conveniens analysis, the court also considers the interests of the public, including:
the administrative difficulties and burden on the court in the plaintiff's chosen forum; the unfairness of imposing the expense of trial and the burden of jury duty on residents of a community with little or no connection to the controversy; the interest in "having localized controversies decided at home"; and choice of law issues, including whether the court will be required to apply its own law, or that of another jurisdiction.
Espinoza,
[¶31] Gulf Oil embraces the West Texas concept of giving the district court discretion to balance the arguments for and against dismissing the case, but also recognizes the important policies of making sure there is an adequate forum available for the suit and respecting the plaintiff's choice of forum when it is appropriate to do so. The second stage of the test incorporates the concepts of rationality and preventing harassment articulated in West Texas but provides a more structured and comprehensive means of analyzing the forum non conveniens issue. We, therefore, join the majority of jurisdictions and adopt the Gulf Oil two-stage test.
3. Application of the Gulf Oil Forum Non Conveniens Test to the Saunders Action
[¶32] The district court's order
1. The parties married November 4, 1989, in North Carolina, where they resided together until recently.
2. Mr. Saunders has extensive business and real estate ventures in North Carolina. The parties also own real property in Wyoming.
3. Mr. Saunders filed a Complaint for divorce in Wyoming on February 9, 2018.
4. Mrs. Saunders filed a Complaint for [d]ivorce in North Carolina on February 21, 2018.
5. The North Carolina Court has stayed all proceedings pending this Court's determination of Mrs. Saunders' Motion to Dismiss for Improper Venue.
6. Mrs. Saunders contends[,] although Mr. Saunders filed first and Wyoming has subject matter jurisdiction [and] personal jurisdiction, North Carolina is the more appropriate forum in which to distribute the parties' apparently complex assets because the majority of the property, the witnesses, and relevant evidence is located in North Carolina.
7. Mr. Saunders requests this court retain jurisdiction. ...
8. ...
9. The Wyoming Supreme Court has ... held: "Whether a case should be dismissed under the doctrine of forum non conveniens lies within the discretion of the district court." Booth v. Magee Carpet Company,548 P.2d 1252 (Wyo. 1976).
W[est] Texas Utilities Co. v. Exxon Coal USA, Inc. ,807 P.2d 932 , 935 (Wyo. 1991).
10. The Court finds Mrs. Saunders' motion should be granted. The parties have never resided in Wyoming as a couple. The majority of Mr. Saunders' business dealings, the witnesses, financial records, property records, [and] the discovery as to the extent of marital property is located in North *1001Carolina. North Carolina is the more convenient forum.
[¶33] The district court followed West Texas ; however, that analysis was not adequate under Gulf Oil. The court did not consider whether North Carolina was an adequate alternate forum or balance the private and public interest factors identified in Gulf Oil. Importantly, the district court did not give any consideration to Mr. Saunders' right, as plaintiff, to choose the forum to litigate his action. Consequently, we reverse and remand for application of the correct test. On remand, the district court must keep in mind that Mrs. Saunders, as the party seeking dismissal, bears a "heavy burden" to establish Mr. Saunders' action should be dismissed on forum non conveniens grounds. Sinochem,
[¶34] As a threshold matter, the district court will need to determine whether North Carolina is an adequate alternate forum. If North Carolina is not an appropriate forum, Wyoming must entertain the suit no matter how inconvenient it is. Restatement (Second) Conflict of Laws § 84, comment c. This inquiry will require a determination of whether Mr. Saunders is amenable to service of process in North Carolina, whether the North Carolina court has jurisdiction over the case, and whether North Carolina law provides a meaningful remedy.
[¶35] Mr. Saunders contends the remedy in North Carolina is inadequate because a divorce is not immediately available, like it is in Wyoming. The parties cite different North Carolina divorce statutes as applying to their situation. Mr. Saunders asserts
[¶36] Mr. Saunders also claims North Carolina is an unsuitable forum because it requires all his business entities to be joined as parties in the divorce action. This requirement is confirmed by Mrs. Saunders' North Carolina divorce complaint which names numerous business entities as co-defendants. The parties also raise issues related to each state's jurisdiction over their business and property interests and the enforceability of the final property distribution order.
[¶37] The district court will need to evaluate these circumstances in the context of relevant authorities and the facts. In doing so, it should keep in mind "the remedy provided by the alternate forum 'need not be the same as that provided by the [plaintiff's chosen forum].' " Yavuz v. 61 MM, Ltd.,
[¶38] If the district court determines North Carolina is an adequate alternate forum, it will move to the second step of the Gulf Oil analysis and balance the private interests and the public interests. Although the doctrine of forum non conveniens " 'leaves much to the discretion of the court,' the exercise of that discretion is not unlimited." Espinoza,
*1002Picketts v. Int'l Playtex, Inc.,
[¶39] As we stated earlier, the private interests considered in the balancing include the relative ease or difficulty in obtaining sources of proof, both documentary and testimonial. Gulf Oil,
[¶40] Under the category of private interest factors, the district court should also consider "all other practical problems that make trial of a case easy, expeditious and inexpensive." Gulf Oil,
[¶41] The procedural and judgment enforcement issues relate to the first-step of the forum non conveniens analysis. If the problems are serious enough, the plaintiff may be without a remedy in the alternate forum, which would mandate denial of the motion to dismiss. However, if such problems exist but do not reach the level of depriving the plaintiff of a remedy, they may still be considered in balancing the private interest factors in the second step of the Gulf Oil test. Espinoza,
[¶42] Gulf Oil also mentions "the plaintiff may not, by choice of an inconvenient forum, 'vex,' 'harass,' or 'oppress' the defendant by inflicting upon him expense or trouble not necessary to his own right to pursue his remedy." Gulf Oil,
[¶43] As part of the second step of the Gulf Oil balancing test, the district court will also need to consider relevant public interest factors. To reiterate, the public interest factors include:
the administrative difficulties and burden on the court in the plaintiff's chosen forum; the unfairness of imposing the expense of trial and the burden of jury duty on residents of a community with little or no connection to the controversy; the interest in "having localized controversies decided at home"; and choice of law issues, including *1003whether the court will be required to apply its own law, or that of another jurisdiction.
Espinoza,
[¶44] The district court's balancing of the public interests should also include analysis of any administrative difficulties in litigating the case. These could include the time and expense to determine matters that are not of particular interest to Wyoming and/or the congestion (or lack thereof) in the court's calendar. Espinoza,
CONCLUSION
[¶45] Mr. Saunders filed his divorce complaint in the Fremont County district court in accordance with the applicable venue statute, § 20-2-104. To the extent the district court dismissed on the basis of improper statutory venue, it erred. The district court's dismissal order also referenced principles associated with the doctrine of forum non conveniens. Although the district court followed this Court's West Texas decision, the analysis was inadequate. We, therefore, adopt the two-stage test for forum non conveniens from Gulf Oil and direct the district court to apply that test on remand. In applying the test, the district court must recognize, "it is for the plaintiff to choose the place of suit" and "his choice of a forum should not be disturbed except for weighty reasons." Restatement (Second) Conflict of Laws, comment c.
[¶46] Reversed and remanded for proceedings consistent with this opinion.
Rule 12(b)(3) states:
(b) How to Present Defenses . - Every defense to a claim for relief in any pleading must be asserted in the responsive pleading if one is required. But a party may assert the following defenses by motion:
....
(3) improper venue[.]
Mrs. Saunders indicated in her motion and affidavit that she provided the documentation supporting her statements to the district court on a thumb drive. Her court filings contain a footnote stating:
[Mrs.] Saunders makes reference to a thumb drive which contains all attachments. The same will be disclosed to the court as necessary and reasonable efforts will be undertaken to maintain the confidentiality of said records and to limit the filing of the same into the public records. It is anticipated that a Confidentiality Order governing the presentation, preservation, and submission of evidence into the appropriate court proceeding will be entered by the court or pursuant to the terms of a Confidentiality Agreement executed between the parties.
The thumb drive is not included in the record on appeal, the district court did not mention it in the dismissal order, and the parties do not reference it in their appellate briefs.
If child custody had been an issue in this case, the Uniform Child Custody Jurisdiction and Enforcement Act,
For ease of reading, we have changed the district court's references to the parties as "plaintiff" and "defendant" to their names without bracketing.
This list of considerations is not exhaustive. For example, some courts have said an alternate forum is inadequate if its courts are so "fraught with corruption, delay and bias" they provide "no remedy at all." Espinoza,
The public interest factors also include the unfairness of asking a jury to determine matters not particularly relevant to the local community. Espinoza,
Reference
- Full Case Name
- Mark A. SAUNDERS, (Plaintiff) v. Sibyl H. SAUNDERS, (Defendant).
- Cited By
- 9 cases
- Status
- Published