stewart organization ricoh argued february decided june petitioner company alabama corporation entered dealership agreement market copier products respondent nationwide manufacturer principal place business new jersey agreement contained clause providing dispute arising contract brought located manhattan new york city petitioner company individual stockholder petitioners filed diversity action district northern district alabama alleging inter alia respondent breached agreement relying contractual clause respondent filed motion seeking inter alia transfer case southern district new york provides convenience parties witnesses interest justice district may transfer civil action district division might brought denied motion holding alabama law controlled alabama looks unfavorably upon contractual clauses interlocutory appeal appeals reversed remanded instructions transfer case holding venue matter federal procedure standards articulated admiralty case bremen zapata clause respects enforceable generally matter federal law held federal law sought applied diversity action congressional statute chief question district determination whether statute sufficiently broad control issue must inquire whether statute represents valid exercise congress authority constitution congress intended reach issue enacted intention law manner abides constitution end matter federal courts bound apply laws enacted congress respect matters legislative power pp case federal law specifically governs decision whether give effect parties clause transfer case manhattan pp although appeals properly noted bremen case held federal courts sitting admiralty generally enforce clauses absent showing unreasonable unjust clause invalid reasons fraud overreaching may prove instructive resolving parties dispute erred articulation relevant inquiry whether clause case unenforceable bremen standards first question consideration whether controls respondent request give effect contractual choice venue transfer case manhattan pp section sufficiently broad control issue statute intended place discretion district courts adjudicate motions transfer according individualized consideration convenience fairness motion transfer calls district weigh balance number factors presence clause figure centrally calculus clause receive neither dispositive consideration consideration rather consideration congress provided section must applied since represents valid exercise congress authority article iii augmented necessary proper clause case district determine first instance appropriate effect federal law parties clause respondent motion pp marshall delivered opinion rehnquist brennan white blackmun stevens kennedy joined kennedy filed concurring opinion joined post scalia filed dissenting opinion post flowers iii argued cause petitioners briefs joseph letzer scott phelps argued cause filed brief respondents justice marshall delivered opinion case presents issue whether federal sitting diversity apply state federal law adjudicating motion transfer case venue provided contractual clause dispute underlying case grew dealership agreement obligated petitioner company alabama corporation market copier products respondent nationwide manufacturer principal place business new jersey agreement contained clause providing dispute arising contract brought located manhattan business relations parties soured circumstances relevant september petitioner brought complaint district northern district alabama core complaint allegation respondent breached dealership agreement petitioner also included claims breach warranty fraud antitrust violations relying contractual clause respondent moved district either transfer case southern district new york dismiss case improper venue district denied motion civ action reasoned transfer motion controlled alabama law alabama looks unfavorably upon contractual clauses certified ruling interlocutory appeal see supp iv appeals eleventh circuit accepted jurisdiction appeal divided panel eleventh circuit reversed district panel concluded questions venue diversity actions governed federal law parties clause enforceable matter federal law panel therefore reversed order district remanded instructions transfer case manhattan petitioner successfully moved rehearing en banc full appeals proceeded adopt result much reasoning panel opinion en banc citing congress enactment approval several rules govern venue determinations diversity actions first determined enue matter federal procedure appeals applied standards articulated admiralty case bremen zapata conclude choice forum clause contract respects enforceable generally matter federal law affirm somewhat different reasoning ii panel opinion opinion full appeals referred difficulties often attend sticky question law state federal govern various aspects decisions federal courts sitting diversity district decision whether apply federal statute diversity action however involves considerably less intricate analysis governs relatively unguided erie choice hanna plumer referring erie tompkins cases indicate federal law sought applied congressional statute first chief question district determination whether statute sufficiently broad control issue walker armco steel burlington northern woods question involves straightforward exercise statutory interpretation determine statute covers point dispute see walker armco steel supra see also burlington northern woods supra identifying inquiry whether federal rule occupies state rule field operation district determines federal statute covers point dispute proceeds inquire whether statute represents valid exercise congress authority constitution see hanna plumer supra citing erie tompkins supra congress intended reach issue district enacted intention law manner abides constitution end matter ederal courts bound apply rules enacted congress respect matters legislative power prima paint flood conklin mfg cf hanna plumer supra situation covered one federal rules instructed apply federal rule refuse advisory committee congress erred prima facie judgment rule question transgresses neither terms enabling act constitutional restrictions thus district sitting diversity must apply federal statute controls issue represents valid exercise congress constitutional powers iii applying analysis case persuades us federal law specifically governs parties venue dispute outset underscore methodological difference approach question taken appeals en banc determined federal law controlled issue based survey different statutes judicial decisions together revealed significant federal interest questions venue general clauses particular appeals proceeded apply standards announced opinion bremen zapata determine clause case enforceable immediate issue district whether grant respondent motion transfer action judge tjoflat properly noted special concurrence immediate issue appeals whether district denial motion constituted abuse discretion although agree appeals bremen case may prove instructive resolving parties dispute cf texas industries radcliff materials federal common law developed admiralty jurisdiction freely transferable diversity setting disagree articulation relevant inquiry whether forum selection clause case unenforceable standards set forth bremen rather first question consideration whether controls respondent request give effect parties contractual choice venue transfer case manhattan reasons follow hold section provides convenience parties witnesses interest justice district may transfer civil action district division might brought analysis outlined first consider whether provision sufficiently broad control issue issue whether transfer case manhattan accordance clause believe statute fairly construed cover point dispute section intended place discretion district adjudicate motions transfer according individualized consideration convenience fairness van dusen barrack motion transfer thus calls district weigh balance number factors presence clause parties entered case significant factor figures centrally district calculus resolution motion case example district called address issues convenience manhattan forum given parties expressed preference venue fairness transfer light clause parties relative bargaining power flexible individualized analysis congress prescribed thus encompasses consideration parties private expression venue preferences section may potential source guidance district consult weighing parties private designation suitable forum premise dispute parties alabama law may refuse enforce clauses providing venues matter state public policy district either integrate factor clause weighing considerations prescribed congress else apply case alabama categorical policy disfavoring clauses cases make clear two choices single field operation burlington northern woods instructions congress cf ibid federal law discretionary mode operation conflicts nondiscretionary provision alabama law federal law applies diversity true alabama putative policy regarding clauses perfectly coextensive section directs district take account factors bear solely parties private ordering affairs district also must weigh balance convenience witnesses factors systemic integrity fairness addition private concerns come heading interest justice conceivable particular case example factors district acting refuse transfer case notwithstanding counterweight clause whereas coordinate state rule might dictate opposite result see wright miller cooper federal practice procedure ed potential conflict fact frames additional argument supremacy federal law congress directed multiple considerations govern transfer within federal system state policy focusing single concern subset factors identified defeat command application impoverish flexible multifaceted analysis congress intended govern motions transfer within federal system clause represents parties agreement proper forum receive neither dispositive consideration respondent might consideration alabama law might rather consideration congress provided cf norwood kirkpatrick accords broad discretion district plaintiff choice forum one relevant factor consideration thus case state federal rules exist side side controlling intended sphere coverage without conflict walker armco steel controls issue district must applied represents valid exercise congress authority constitution constitutional authority congress enact subject serious question made plain hanna constitutional provision federal system carries congressional power make rules governing practice pleading courts turn includes power regulate matters though falling within uncertain area substance procedure rationally capable classification either see also erie offspring cast doubt power congress prescribe housekeeping rules federal courts section doubtless capable classification procedural rule indeed classified holding transfer pursuant carry change applicable law see van dusen barrack oth history purposes indicate regarded federal judicial housekeeping measure therefore falls comfortably within congress powers article iii augmented necessary proper clause see burlington northern woods supra hold federal law specifically governs district decision whether give effect parties clause transfer case manhattan therefore affirm eleventh circuit order reversing district application alabama law case remanded district may determine first instance appropriate effect federal law parties clause respondent motion ordered footnotes judge tjoflat special concurrence joined two judges argued district taken account ultimately enforced clause evaluation factors justice convenience govern transfer cases also dissenting opinion five members eleventh circuit argued state law govern dispute warned application federal law encourage forum shopping improperly undermine alabama policy respondent points jurisdiction case alleged rest existence antitrust claim see diversity citizenship see respondent suggest presence federal claim affect district analysis applicable law appeals plurality likewise address issue indeed characterized case simply diversity action see conclusion federal law governs transfer case see part iii infra makes issue academic purposes case presence federal question cut favor application federal law therefore called decide decide whether existence well diversity jurisdiction necessarily alters district analysis applicable law cases times referred question stage analysis inquiry whether direct collision state federal law see walker armco steel hanna plumer logic indicates however careful reading relevant passages confirms language meant mandate federal law state law perfectly coextensive equally applicable issue hand rather direct collision language least applicability federal statute issue expresses requirement federal statute sufficiently broad cover point dispute see hanna plumer supra make sense supremacy federal law wane precisely state law directly point hanna plumer supra identifies additional inquiry applicability federal rule civil procedure question federal rules must measured statutory requirement rules enabling act abridge enlarge modify substantive right federal statute rule covers point dispute district proceeds evaluate whether application federal law disserve twin aims erie rule discouragement avoidance inequitable administration laws hanna plumer supra application federal law disserve two policies district apply state law see walker armco steel supra bremen held federal courts sitting admiralty generally enforce clauses absent showing unreasonable unjust clause invalid reasons fraud overreaching parties dispute district properly denied motion dismiss case improper venue respondent apparently business northern district alabama see venue proper judicial district corporation business application standards set forth bremen case appeals concluded alabama policy enforcement clauses intended apply protect jurisdiction state courts alabama therefore come play case case dispute might much ado nothing see determination governs parties dispute notwithstanding contrary alabama policy makes unnecessary address contours state law see supra dissent dispute point rather argues clause unenforceable state law clause accorded weight federal see post least problems dissent analysis makes applicability federal statute depend content state law see supra state district consideration clause holding clause automatically enforceable makes sense able holding clause automatically void validly enacted act congress controls issue dispute occasion evaluate impact application federal law twin aims animate erie doctrine justice kennedy justice joins concurring concur full write separately observe enforcement valid clauses bargained parties protects legitimate expectations furthers vital interests justice system although opinion bremen zapata involved federal district sitting admiralty reasoning applies much force federal courts sitting diversity justifications noted bremen counter historical disfavor clauses received american courts understood guide district analysis federal judicial system strong interest correct resolution questions spare litigants unnecessary costs also relieve courts pretrial motions courts announce encourage rules support private parties negotiate clauses though state policies weighed balance authority prerogative federal courts determine issue congress directed exercised valid clause given controlling weight exceptional cases see bremen supra justice scalia dissenting agree opinion initial question us whether validity parties contractual clause falls within scope see ante agree however answer question yes believe federal courts consistent test erie tompkins fashion rule govern issue contract validity litigant asserts state law conflicts federal procedural statute formal rule procedure first task determine whether disputed point question fact falls within scope federal statute rule case must determine whether scope sufficiently broad cause direct collision state law implicitly control issue validity parties clause thereby leaving room operation state law see burlington northern woods conclude although language provides clear answer view provide direction provision vests district courts authority transfer civil action another district convenience parties witnesses interest justice language looks present future specific reference convenience parties witnesses suggests requires consideration likely future case tried light things stand accordingly courts applying examined variety factors pertains facts currently exist exist forum actually chosen plaintiff current convenience parties witnesses current location pertinent books records similar litigation pending elsewhere current docket conditions familiarity potential courts governing state law see wright miller cooper federal practice procedure ed holding validity parties clause falls within scope inevitably imports view without adequate textual foundation new retrospective element deliberations requiring examination facts concerning among things bargaining power parties presence absence overreaching time contract made see ante largely attempts avoid acknowledging novel scope gives casting issue much weight district give clause factors makes determination agree issue us governed parties may decide bear inconvenience decide much weight given factor parties convenience relevant factors convenience witnesses description issue begs question law governs whether clause valid invalid allocation inconvenience parties invalid voided parties entitled weight determination since alabama law clause voided see redwing carriers foster case question weight given clause reached preliminary matter federal law controls issue validity clause parties second enacted background issues contract including contract validity nearly always governed state law simply contrary practice system issue wrenched state control absence clear conflict federal law explicit statutory provision particularly instructive regard compare another provision enacted congress year earlier state contract law precisely field agreement regarding forum selection section federal arbitration act provides written provision contract evidencing transaction involving commerce settle arbitration controversy thereafter arising contract transaction refusal perform whole part thereof agreement writing submit arbitration existing controversy arising contract transaction refusal shall valid irrevocable enforceable save upon grounds exist law equity revocation contract third common ground since erie federal procedural statute rule procedure point substantial uniformity predictable outcome federal state courts adjudicating claims striven see also klaxon stentor electric mfg rests upon perception constitutional congressional plan underlying creation diversity pendent jurisdiction lower federal courts quite obviously carried forward interpretation ambiguous statutes relating exercise jurisdiction assume words fair congress concerned avoid significant differences state federal courts adjudicating claims cf southland keating interpreting federal arbitration act apply claims brought state courts order discourage forum shopping thus deciding whether federal procedural statute rule procedure encompasses particular issue broad reading create significant disuniformity state federal courts avoided text permits see walker armco steel cohen beneficial industrial loan palmer hoffman cf bator meltzer mishkin shapiro hart wechsler federal courts federal system ed continued since hanna interpret federal rules avoid conflict important state regulatory policies shown interpretation given today neither plain natural meaning best ambiguous therefore construe avoid significant encouragement forum shopping inevitably provided interpretation adopts today ii since federal statute rule procedure governs validity clause remaining issue whether federal courts may fashion rule govern question may rules decision act mandates use state law see erie supra hanna plumer federal courts lack authority fashion rule state law must govern law delcostello teamsters dissenting rules decision act simply requires application state law unless federal law applies see also general interpreting applying substantive law essence judicial power created article iii constitution power encompass making substantive law cf erie supra whatever scope federal courts authority create federal common law areas plain mere fact petitioner company brought antitrust claim ante empower federal courts make common law question validity clause see campbell haverhill rules decision act neither contains suggests distinction cases diversity cases delcostello supra stevens dissenting cf texas industries radcliff materials federal courts authority however make procedural rules govern practice see federal courts may make rules conduct business fed rule civ proc districts courts authority regulate practice see generally sibbach wilson deciding substantive procedural purposes adhered functional test based twin aims erie rule discouragement avoidance inequitable administration laws hanna supra see also ante walker armco steel supra moreover although reviewing validity federal procedural statute rule procedure inquire whether congress rulemakers trespassed beyond wide latitude given determine matter procedural see burlington northern woods hanna supra reviewing lower courts application test apply judgment matter law test believe state law controls question validity clause parties eleventh circuit rule clearly encourages forum shopping venue often vitally important matter shown frequency parties contractually provide litigate issue suit might well pursued might successful significantly less convenient forum transfer less desirable forum therefore sufficient import plaintiffs base decisions likelihood eventuality choosing whether sue state federal respect clauses state law unfavorable validity plaintiffs seek avoid effect clause encouraged sue state defendants encouraged shop favorable law removing federal reverse situation state law favorable enforcing clauses plaintiffs encouraged sue federal significant encouragement forum shopping alone sufficient warrant application state law cf walker armco steel supra failure meet one part test suffices warrant application state law believe creating rule fails second part test well producing inequitable administration laws best explanation constitutes inequitable administration laws found erie allowing unfair discrimination noncitizens citizens forum state see also hanna whether discrimination unfair context largely turns important matter question see decision important legal issue turn accident diversity citizenship see walker supra presence federal question unrelated issue difficult imagine issue importance one goes merits lawsuit validity contractual provision certainly erie doctrine previously held require application state law subjects similar obviously lesser importance see walker supra whether filing complaint service tolls statute limitations bernhardt polygraphic america arbitrability cohen beneficial industrial loan indemnity bond litigation expenses courts ignore issues contract validity traditionally matters governed state law reasons stated respectfully dissent contrary opinion nothing unusual applicability federal statute depend content state law ante recognized precisely required application federal statute depends resolution underlying issue fundamentally one state law see commissioner estate bosch cf budinich becton dickinson dictum approach believe required undermined fact still situations rule validity clause dispositive issue transfer federal courts state law hold clause invalid federal nonetheless order transfer another federal transfer warranted without regard clause remarkable since whether transfer case one federal district another reasons contractual agreement parties plainly made matter federal law hand state law hold clause valid agree justice kennedy concurrence valid clause given controlling weight exceptional cases ante even exceptional cases clause valid state law transfer unwarranted factor convenience parties district give effect state contract law dismissing suit