Residency Venue in Cases with Foreign Corporate Defendants

A few years ago, Congress passed the Federal Courts Jurisdiction and Venue Clarification Act of 2011, in part to resolve, as the title suggests, uncertainties concerning the old venue statute. The effort succeeded in various regards, but Congress may have unwittingly created a new problem in the course of correcting others. Specifically, it’s not clear how to determine residency venue under 28 U.S.C. § 1391(b)(1) when at least one of the defendants is a foreign corporation.

The statute seems to provide two contradictory solutions: First, venue is appropriate in a district only if at least one defendant resides there and all defendants—including the foreign corporation—reside in the state in which the district is located. In this analysis, 1391(c)(2) decides residency questions for all corporate defendants such that a foreign corporation, like any other, is a resident of the given state only if it is subject to personal jurisdiction there.

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Grilling By Judges? It’s Not Just for Moot Court.

NSAPerhaps it is because I just spent an enjoyable few weeks judging the Appellate Writing and Advocacy class moot court rounds, that lately I have taken a few detours while doing research. While reading some of the NSA phone data cases, I watched an enlightening and very entertaining appellate argument online. We may wait a long time to see video recordings of U.S. Supreme Court arguments, but the Circuit Courts of Appeal oblige us for some of their cases, which is a bonus for everyone including students.

Several plaintiffs’ lawsuits that challenge the National Security Administration’s phone records surveillance program are making their way through the federal courts. Plaintiffs in these cases have claimed the NSA data grab violated their rights under the Fourth Amendment or that Section 215 of the Patriot Act, the original basis for the surveillance under President George W. Bush, cannot reasonably be interpreted as allowing the program. For students who participate in a moot court competition, or are considering it in the future, video of the oral arguments in these cases provides an opportunity to learn something about the privacy issues and also to see the types of questions and atmosphere an attorney might expect from a federal appellate panel.

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Discerning the Relationship Between Bankruptcy Judges and Article III Judges

supreme courtThis summer, the United States Supreme Court handed down a decision in the case of Executive Benefits Insurance Agency v. Arkison that changed how bankruptcy judges, covered under Article I (the Executive Branch) of the Constitution, and district court Article III judges work together. Arkison helped clarify nagging procedural issues between district and bankruptcy courts. At the same time, Arkison verified a significant reduction in the ability of bankruptcy courts to resolve common claims arising in bankruptcy proceedings.

Arkison began as a seemingly conventional case. In 2006, Bellingham Insurance Agency filed for Chapter 7 bankruptcy. Peter Arkison was assigned as the trustee. Mr. Arkison filed a fraudulent conveyance complaint against Bellingham, something not uncommon in a bankruptcy proceeding. In fact, Title 28 specifically grants bankruptcy courts the ability to hear and determine such claims. The bankruptcy court granted summary judgment on Mr. Arkison’s claim.

The black letter language in Title 28 and Supreme Court precedent contradict each other.

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