contacts with Pennsylvania continue up through the present day. See document 8 of the record, at pp. 2-4.
Defendants' attempts to distinguish Gavigan must fail. The plaintiffs here alleged the same contacts raised by the plaintiffs in Gavigan, see document 11 of the record, in addition to subsequent contacts between the defendants and the Commonwealth of Pennsylvania. Thus, this court will adopt the reasoning of Judge Huyett in Gavigan and so will deny the defendants' Motion to Dismiss for lack of in personam jurisdiction.
Defendants also argue that venue is improper in the Middle District of Pennsylvania. This argument must also fail. Plaintiffs' suit is based solely on diversity and all the plaintiffs reside in the Middle District of Pennsylvania. Thus, venue is proper under 28 U.S.C. § 1391(a) without regard to 28 U.S.C. § 1391(c). See, e.g., Galaxy International, Inc. v. White Stores, Inc., 88 F.R.D. 311, 314 (W.D. Pa. 1980) ("Section 1391(c) does not limit the choice of venue made available by other statutes and does not require a corporation to be sued only in one of the districts in which the corporation is deemed to reside under that provision. In a diversity case against a corporation[,] suit still may be brought in the district in which all plaintiffs reside . . . ."); see also American Cyanamid Co. v. Hammond Lead Products, Inc., 495 F.2d 1183, 1184 (3d Cir. 1974); Strick Corp. v. A.J.F. Warehouse Distributors, Inc., 532 F. Supp. 951, 960-61 (E.D. Pa. 1982); 15 Wright, Miller & Cooper, Federal Practice and Procedure: Jurisdiction and Related Matters 2d § 3811 at 103-104.
Finally, in their Motion to Dismiss, defendants request that, if their Motion to Dismiss is denied, this action be transferred to the Middle District of Florida where the cause of action arose. Pursuant to 28 U.S.C. § 1404(a), a district may transfer a civil action to any other district or division where it might have been brought for the convenience of the parties and witnesses, in the interest of justice. 28 U.S.C. § 1404(a). The moving party has the burden of establishing that the statutory factors are present, Plum Tree, Inc. v. Stockment, 488 F.2d 754, 756 (3d Cir. 1973), and the plaintiff's choice of forum should rarely be disturbed unless the balance of the factors to be weighed is strongly in favor of the defendant. Gulf Oil Corp. v. Gilbert, 330 U.S. 501, 508-509, 67 S. Ct. 839, 843, 91 L. Ed. 1055 (1947). In ruling on a motion to transfer pursuant to § 1404(a), the court is "vested with a wide discretion . . . ." Plum Tree, Inc., supra, at 756.
In their Memorandum of Law in Support of Defendants' Motion to Dismiss, see document 5 of the record, defendants fail to set forth any facts supporting their request for a transfer to the Middle District of Florida. Thus, defendants have failed to meet their burden of showing that the statutory factors are present. Therefore, at this time, the request for a transfer pursuant to § 1404(a) will be denied.
Both plaintiffs and defendants have moved for sanctions pursuant to Fed.R.Civ.P. 11. Rule 11 provides in pertinent part that an attorney should not submit a pleading unless "it is well grounded in fact and is warranted by existing law or a good faith argument for the extension, modification, or reversal of existing law, and that it is not to be interposed for any improper purpose, such as to harass or to cause unnecessary delay or needless increase in the cost of litigation." Rule 11 further authorizes the court to impose appropriate sanctions upon an attorney who violates his certification that good grounds support his pleading and that the pleading is not interposed for delay. Walsh v. Schering-Plough Corp., 758 F.2d 889, 895 (3d Cir. 1985).
Under Rule 11, the standard for testing conduct is reasonableness under the circumstances. Eavenson, Auchmuty & Greenwald v. Holtzman, 775 F.2d 535, 540 (3d Cir. 1985). Moreover, the grant or denial of a Rule 11 motion for sanctions is within the district court's discretion. Id. Finally, when exercising its discretion, the district court "is expected to avoid using the wisdom of hindsight and should test the signer's conduct by inquiring what was reasonable to believe at the time the pleading . . . was submitted." Notes of Advisory Committee on Rules, 1983 Amendment, Fed.R.Civ.P. 11; see also Holtzman, supra, at 540.
This is not an appropriate case for sanctions. The issue of whether defendants Walt Disney Company and Walt Disney World Company are subject to in personam jurisdiction in the Middle District of Pennsylvania was not decided before this case. Precedent exists that might reasonably support both sides' arguments. While Gavigan seems to be the latest word on this issue, it was decided in the Eastern District of Pennsylvania and so this court was not required to follow it. Finally, in personam jurisdiction must be decided on a case-by-case basis and it is not unreasonable to argue for a different result based on a perceived change of circumstances. Thus, as the arguments set forth by the plaintiffs and the defendants were reasonable under the circumstances, the defendants' and plaintiffs' Motions for Sanctions are hereby denied.
An appropriate Order will enter.
NOW, this 16th day of September, 1987, in accordance with the reasoning set forth in the accompanying Memorandum, IT IS HEREBY ORDERED THAT:
(1) Defendants' Motion to Dismiss is denied.
(2) Plaint@ffs' Motionfor Sanctiods is denied.
(3) Defendants' Motion for Sanctions is denied.
(4) Defendants are directed to respond to plaintiffs' Complaint within twenty (20) days of the date of this Order.