Written by attorneys · grounded in primary & secondary sources — see below
A federal district court that receives a civil action transferred from another district under 28 U.S.C. § 1404(a) for the convenience of parties and witnesses. When the transfer occurs from a district where venue was proper, the transferee court must apply the same state substantive law and choice-of-law rules that the transferor court would have applied.
Sources & Authorities
How it applies
Common Examples
2
Plaintiff Requests Transfer After Filing
Tara Tran filed a diversity suit in federal court in New Jersey against a Delaware defendant after venue and jurisdiction were proper there. She later moved under section 1404(a) to transfer the case to Delaware for convenience once she realized New Jersey choice-of-law rules might favor her claims less than Delaware rules. After the transfer, the Delaware federal court must apply New Jersey substantive law and New Jersey choice-of-law rules to the claims.
Defendant Seeks Convenience Transfer
Tessa Takahashi sued a Missouri seed company in federal court in Iowa after venue and jurisdiction were proper there. The defendant moved under section 1404(a) to transfer the case to Missouri for convenience of witnesses and evidence. After the transfer, the Missouri federal court must apply Iowa substantive law and Iowa choice-of-law rules to the warranty and limitations issues rather than switching to Missouri law.
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Cases
Federal Rules
Casebooks
Van Dusen v. Barrack376 U.S. 612 (1964)
Common questions
Frequently Asked
3
Does the transferee court apply its own state's law after a section 1404(a) transfer from a proper venue?+
No. The transferee court must apply the same state substantive law and choice-of-law rules that the transferor court would have applied. This rule prevents parties from using a convenience transfer to obtain a more favorable body of state law.
Supporting sources
Does it matter whether the plaintiff or the defendant requests the transfer?+
No. The rule that the transferee court applies the transferor court's state law and choice-of-law rules applies regardless of which party moves for transfer under section 1404(a).
Supporting sources
What happens if the plaintiff files in an inconvenient but favorable forum and then seeks transfer?+
The transferee court still must apply the transferor court's state law and choice-of-law rules. The transfer statute addresses convenience only and does not permit a change in governing law.
Supporting sources
494 U.S. 516 (1990)Civil Procedure
…forums now that filing-and-transfer is an approved form of shopping for law; plus the costs attending the necessity for transferee courts to figure out the choice-of-law rules (and probably the substantive law) of distant States much more often than our Van Dusen decision would require. It should be noted that the…