Dec 10, 2012

Gulf Oil Corp. vs. Gilbert Digest

Gulf Oil Corp. v. Gilbert

Forum Non-Conveniens

Facts:
1. Plaintiff Gilbert filed an action in New York against the petitioner for negligence due to the delivery of gasoline to his tanks and pumps. The venue statutes of the United States permit this. Gilbert resides in Virginia, USA.

2. Petitioner Gulf Oil is a company organized under the laws of Pennsylvania with authority to do business in both Virginia and New York. It designated officials in each state as agents to receive the process. Gulf Oil invoked the doctrine of 'forum non-conveniens' and claimed that Virginia is the appropriate venue for the trial becuase it is where the plaintiff resides, where corporation does business, where the witness likewise resides and it is also the place where the events took place.

3. On one hand, plaintiff contends that the action filed in New York is justified since the action involved an amount for claim for damages close to $400 thousand which may stagger the imagination of the local jury, the diversity of the citizenship of the parties and that plaintiff's counsel resides in New York.

4. The District Court of New Yorl dismissed the tort action pursuant to FNC (forum non-conveniens) while the Appeals Court reversed the decision.

Issue: Whether or not the action was properly dismissed from NY court under the doctrine of FNC thought personam jurisdiction and venue are proper

HELD:

YES. The application of the doctrine lies in the the discretion of the court. However, tje interests of the plaintiff, the defendant and the forum state need to be considered. Here, there is not interest for any party to have the litigation in New York. In fact, interests weigh against it.

Moreover, the plaintiff may not choose an inconvenient forum to harass the petitioner. Finally, the state has an interest in avoiding the overcrowding of its own courts and subjecting its citizens to jury duty in a case having no ties to their state.

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