The plaintiff Gilbert, a resident of Lynchburg, Virginia, operated a public warehouse in that city. He brought suit against Gulf Oil Corporation alleging that the defendant, in violation of local ordinances, carelessly handled a delivery of gasoline to the warehouse tanks and pumps, resulting in an explosion and fire. The fire destroyed the warehouse building, merchandise, fixtures, and customers' stored property, and caused injury to business profits, with total claimed damages exceeding $365,000.
The defendant is a Pennsylvania corporation qualified to do business in both Virginia and New York. When the action was commenced in the Southern District of New York on the basis of diversity of citizenship, the defendant moved to dismiss under the doctrine of forum non conveniens. It asserted that Virginia was the appropriate forum because the plaintiff resided there, all events in the litigation took place there, and most witnesses resided there, with both state and federal courts available.
The district court dismissed the action, applying New York law on forum non conveniens pursuant to Erie Railroad Co. v. Tompkins. The Circuit Court of Appeals reversed that decision. The Supreme Court granted certiorari to review the application of the doctrine in federal courts.
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