Reverse and Render : Texas Appellate Lawyer & Attorney : Cowles & Thompson Law Firm : Court of Appeals, Texas Supreme Court

If you've got a venue selection clause and you are wondering whether you can file in state or federal court, or whether you can remove a state-filed case to federal court, you might look at the Fifth Circuit's opinion in Alliance Health Group LLC v. Bridging Health Options LLC.

The venue clause in this case  provided that "exclusive venue for any litigation related hereto shall occur in Harrison County, Mississippi."  The Court held that the particular language of this clause and the fact that Harrison County, Mississippi has a federal courthouse in that county permits venue in federal court.  Significantly, the Court discusses a number of other permutations to the language in venue clauses and draws distinctions that may be of use to practitioners.

For your convenience, I've extracted from the court's opinion its commentary on some of the permutations of venue selection language and what result attaches to the language.

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In a case involving application of the mandatory venue provision in section 15.011 of the Texas Civil Practice and Remedies Code, the Dallas Court of Appeals held that a suit to remove a lis pendens constitutes an action to quiet title.  The Court, therefore, held that "[o]nce it is demonstrated that the court's judgment would have some effect on an interest in land, then the venue of the suit is properly fixed under the mandatory venue statute."  The trial court had denied the defendant's motion to transfer venue to Harris County (where the land was located) and rendered judgment on behalf of the plaintiff.  The court noted that "a trial court's erroneous denial of a motion to transfer venue is not harmless and requires reversal of the judgment and remand for new trial."  Accordingly, the court of appeals reversed and remanded the case with instructions to transfer the case to Harris County.  The court's opinion in Airvantage, L.L.C. v. TBAN Props. #1, L.T.D. can be found at this link. 

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