home *** CD-ROM | disk | FTP | other *** search
- NOTICE: This opinion is subject to formal revision before publication in the
- preliminary print of the United States Reports. Readers are requested to
- notify the Reporter of Decisions, Supreme Court of the United States, Wash-
- ington, D.C. 20543, of any typographical or other formal errors, in order that
- corrections may be made before the preliminary print goes to press.
- SUPREME COURT OF THE UNITED STATES
- --------
- No. 91-779
- --------
- BURLINGTON NORTHERN RAILROAD COMPANY,
- PETITIONER v. WILLIAM D. FORD and
- THOMAS L. JOHNSON
- on writ of certiorari to the supreme court of
- montana
- [June 12, 1992]
-
- Justice Souter delivered the opinion of the Court.
- Montana's venue rules permit a plaintiff to sue a corpora-
- tion incorporated in that State only in the county of its
- principal place of business, but permit suit in any county
- against a corporation incorporated elsewhere. This case
- presents the question whether the distinction in treatment
- offends the Equal Protection Clause of the Fourteenth
- Amendment, U. S. Const. Amdt. 14, 1. We hold that it
- does not.
- Respondents William D. Ford and Thomas L. Johnson
- were employed by petitioner Burlington Northern Railroad
- Company, a corporation owing its existence to the laws of
- Delaware and having a principal place of business in Fort
- Worth, Texas. Ford and Johnson raised a claim under the
- Federal Employers' Liability Act (FELA), 35 Stat. 65, as
- amended, 45 U. S. C. 51-60, and brought suit in the
- state trial court for Yellowstone County, Montana, alleging
- injuries sustained while working at Burlington's premises
- in Sheridan, Wyoming. In each case, Burlington moved to
- change venue to Hill County, Montana, where it claimed to
- have its principal place of business in that State. The trial
- court denied each motion, and Burlington brought interlocu-
- tory appeals.
- The Supreme Court of Montana consolidated the two
- cases and affirmed the decisions of the trial court. ___
- Mont. ____, 819 P. 2d 169 (1991). Under the Montana
- venue rules, the court said, a foreign corporation may be
- sued in any of Montana's counties. Id., at ____, 819 P.2d,
- at 171. The court rejected Burlington's argument that the
- State's venue rules worked a discrimination violating the
- Fourteenth Amendment's Equal Protection Clause. The
- Montana venue rules, the court explained, were subject
- merely to rational-basis review, id., at ____, 819 P.2d, at
- 173, which was satisfied, at least in these cases, by the
- consonance of the rules with federal policy, embodied in
- FELA, of facilitating recovery by injured railroad workers,
- id., at ____, 819 P.2d, at 173-174. Besides, the court said,
- Montana's venue rules did not even discriminate against
- Burlington, since Ford and Johnson could have sued the
- corporation in the Federal District Court for Montana,
- which sits in Yellowstone County, among other places. Id.,
- at ____, 819 P.2d, at 175. We granted certiorari, 502 U. S.
- ___ (1992), and, although our reasoning differs from that of
- the State Supreme Court, now affirm.
- A Montana statute provides that -the proper place of trial
- for all civil actions is the county in which the defendants or
- any of them may reside at the commencement of the
- action.- Mont. Code Ann. 25-2-118(1) (1991). But, -if
- none of the defendants reside in the state, the proper place
- of trial is any county the plaintiff designates in the com-
- plaint.- 25-2-118(2). The Supreme Court of Montana
- has long held that a corporation does not -reside in the
- state- for venue purposes unless Montana is its State of
- incorporation, see, e.g., Haug v. Burlington Northern R.
- Co., 236 Mont. 368, 371, 770 P. 2d 517, 519 (1989); Foley v.
- General Motors Corp., 159 Mont. 469, 472-473, 499 P. 2d
- 774, 776 (1972); Hanlon v. Great Northern R. Co., 83 Mont.
- 15, 21, 268 P. 547, 549 (1928); Pue v. Northern Pacific R.
- Co., 78 Mont. 40, 43, 252 P. 313, 315 (1926), and that a
- Montana corporation resides in the Montana county in
- which it has its principal place of business, see, e.g.,
- Mapston v. Joint School District No. 8, 227 Mont. 521, 523,
- 740 P. 2d 676, 677 (1987); Platt v. Sears, Roebuck & Co.,
- 222 Mont. 184, 187, 721 P. 2d 336, 338 (1986). In combina-
- tion, these venue rules, with exceptions not here relevant,
- permit a plaintiff to sue a domestic company in just the one
- county where it has its principal place of business, while a
- plaintiff may sue a foreign corporation in any of the State's
- 56 counties. Burlington claims the distinction offends the
- Equal Protection Clause.
- The Fourteenth Amendment forbids a State to -deny to
- any person within its jurisdiction the equal protection of the
- laws.- U. S. Const., Amdt. 14, 1. Because the Montana
- venue rules neither deprive Burlington of a fundamental
- right nor classify along suspect lines like race or religion,
- they do not deny equal protection to Burlington unless they
- fail in rationally furthering legitimate state ends. See, e.g.,
- United States v. Sperry Corp., 493 U. S. 52, 64 (1989);
- Dallas v. Stanglin, 490 U. S. 19, 25 (1989).
- Venue rules generally reflect equity or expediency in
- resolving disparate interests of parties to a lawsuit in the
- place of trial. See, e.g., Citizens & Southern National Bank
- v. Bougas, 434 U. S. 35, 44, n. 10 (1977); Denver & R. G. W.
- R. Co. v. Trainmen, 387 U. S. 556, 560 (1967); Van Dusen
- v. Barrack, 376 U. S. 612, 623 (1964); F. James & G.
- Hazard, Civil Procedure 47 (3d ed. 1985). The forum
- preferable to one party may be undesirable to another, and
- the adjustment of such warring interests is a valid state
- concern. Cf. United States Railroad Retirement Bd. v. Fritz,
- 449 U. S. 166, 178 (1980). In striking the balance between
- them, a State may have a number of choices, any of which
- would survive scrutiny, each of them passable under the
- standard tolerating some play in the joints of governmental
- machinery. See Bain Peanut Co. of Texas v. Pinson, 282
- U. S. 499, 501 (1931). Thus, we have no doubt that a State
- would act within its constitutional prerogatives if it were to
- give so much weight to the interests of plaintiffs as to allow
- them to sue in the counties of their choice under all circum-
- stances. It is equally clear that a State might temper such
- an -any county- rule to the extent a reasonable assessment
- of defendants' interests so justified.
- Here, Montana has decided that the any-county rule
- should give way to a single-county rule where a defendant
- resides in Montana, arguably on the reasonable ground that
- a defendant should not be subjected to a plaintiff's tactical
- advantage of forcing a trial far from the defendant's
- residence. At the same time, Montana has weighed the
- interest of a defendant who does not reside in Montana
- differently, arguably on the equally reasonable ground that
- for most nonresident defendants the inconvenience will be
- great whether they have to defend in, say, Billings or
- Havre. See Power Manufacturing Co. v. Saunders, 274
- U. S. 490, 498 (1927) (Holmes, J., dissenting). Montana
- could thus have decided that a nonresident defendant's
- interest in convenience is too slight to outweigh the
- plaintiff's interest in suing in the forum of his choice.
- Burlington does not, indeed, seriously contend that such
- a decision is constitutionally flawed as applied to individual
- nonresident defendants. Nor does it argue that such a rule
- is unconstitutional even when applied to corporate defen-
- dants without a fixed place of business in Montana.
- Burlington does claim, however, that the rule is unconstitu-
- tional as applied to a corporate defendant like Burlington
- that not only has its home office in some other State or
- country, but also has a place of business in Montana that
- would qualify as its -principal place of business- if it were
- a Montana corporation.
- Burlington's claim fails. Montana could reasonably have
- determined that a corporate defendant's home office is
- generally of greater significance to the corporation's
- convenience in litigation than its other offices; that foreign
- corporations are unlikely to have their principal offices in
- Montana; and that Montana's domestic corporations will
- probably keep headquarters within the State. We cannot
- say, at least not on this record, that any of these assump-
- tions is irrational. Cf. G. D. Searle & Co. v. Cohn, 455
- U. S. 404, 410 (1982); Metropolitan Casualty Ins. Co. v.
- Brownell, 294 U. S. 580, 585 (1935). And upon them
- Montana may have premised the policy judgment, which we
- find constitutionally unimpeachable, that only the conve-
- nience to a corporate defendant of litigating in the county
- containing its home office is sufficiently significant to
- outweigh a plaintiff's interest in suing in the county of his
- choice.
- Of course Montana's venue rules would have implement-
- ed that policy judgment with greater precision if they had
- turned on the location of a corporate defendant's principal
- place of business, not on its State of incorporation. But this
- is hardly enough to make the rules fail rational-basis
- review, for -rational distinctions may be made with sub-
- stantially less than mathematical exactitude.- New Orleans
- v. Dukes, 427 U. S. 297, 303 (1976); see Hughes v. Alexan-
- dria Scrap Corp., 426 U. S. 794, 814 (1976); Lindsley v.
- Natural Carbonic Gas Co., 220 U. S. 61, 78 (1911). Mon-
- tana may reasonably have thought that the location of a
- corporate defendant's principal place of business would not
- be as readily verifiable as its State of incorporation, that a
- rule hinging on the former would invite wasteful side shows
- of venue litigation, and that obviating the side shows would
- be worth the loss in precision. These possibilities, of course,
- put Burlington a far cry away from the point of discharging
- its burden of showing that the under- and overinclusiveness
- of Montana's venue rules is so great that the rules can no
- longer be said rationally to implement Montana's policy
- judgment. See, e.g., Brownell, supra, at 584. Besides,
- Burlington, having headquarters elsewhere, would not
- benefit even from a scheme based on domicile, and is
- therefore in no position to complain of Montana's using
- State of incorporation as a surrogate for domicile. See
- Roberts & Schaefer Co. v. Emmerson, 271 U. S. 50, 53-55
- (1926); cf. United States v. Raines, 362 U. S. 17, 21 (1960).
- Burlington is left with the argument that Power Manu-
- facturing Co. v. Saunders, supra, controls this case. But it
- does not. In Saunders, we considered Arkansas' venue
- rules, which restricted suit against a domestic corporation
- to those counties where it maintained a place of business,
- 274 U. S., at 491-492, but exposed foreign corporations to
- suit in any county, id., at 492. We held that the distinction
- lacked a rational basis and therefore deprived foreign
- corporate defendants of the equal protection of the laws.
- Id., at 494. The statutory provision challenged in Saunders,
- however, applied only to foreign corporations authorized to
- do business in Arkansas, ibid., so that most of the corpora-
- tions subject to its any-county rule probably had a place of
- business in Arkansas. In contrast, most of the corporations
- subject to Montana's any-county rule probably do not have
- their principal place of business in Montana. Thus,
- Arkansas' special rule for foreign corporations was tailored
- with significantly less precision than Montana's, and, on the
- assumption that Saunders is still good law, see American
- Motorists Ins. Co. v. Starnes, 425 U. S. 637, 645, n. 6
- (1976), its holding does not invalidate Montana's venue
- rules.
- In sum, Montana's venue rules can be understood as
- rationally furthering a legitimate state interest. The
- judgment of the Supreme Court of Montana is accordingly
-
- Affirmed.
-