Carolina Casualty Co. v. Data Broadcasting Corp.

ORDER

Defendants move to dismiss this case or transfer it to the Central District of California pursuant to 28 USC § 1406 (a), for improper venue. In the alternative, defendants move for transfer under § 1404(a), which provides for convenience transfers. The hearing scheduled for July 19, 2001, is vacated. See Civil LR 7-l(b). For the reasons that follow, the court concludes that the case should be transferred to the Central District for consolidation with a mirror image suit pending there.

I

On April 2, 2001, a third party, Paul B Farrell, brought suit against defendants in the Los Angeles superior court, alleging breach of contract, breach of a fiduciary duty and fraud. The suit by Farrell arises out of a business arrangement between Farrell and defendant Data Broadcasting Corp (DBC). Farrell and DBC joined forces to create a web site providing information to mutual fund investors. Farrell and DBC were to be equal co-owners of the venture. DBC later partnered with CBS to form the investor web site Market-Watch.com. On January 15, 1999, Market-Watch.com, Inc, went public and was valued at $1 billion. Farrell did not receive any shares of the entity and brought suit. See…