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SUPREME COURT OF THE UNITED STATES
_________________
No. 16–341
_________________
TC HEARTLAND LLC, PETITIONER
v.
KRAFTFOODS GROUP BRANDS LLC
on writ of certiorari to the united states
court of appeals for the federal circuit
[May 22, 2017]
Justice Thomas delivered the opinion of the
Court.
The question presented in this case is where
proper venue lies for a patent infringement lawsuit brought against
a domestic corporation. The patent venue statute, 28
U. S. C. §1400(b), provides that “[a]ny civil action for
patent infringement may be brought in the judicial district where
the defendant resides, or where the defendant has committed acts of
infringement and has a regular and established place of business.”
In
Fourco Glass Co. v.
Transmirra Products Corp., 353
U. S. 222, 226 (1957) , this Court concluded that for purposes
of §1400(b) a domestic corporation “resides” only in its State of
incorporation.
In reaching that conclusion, the Court rejected
the argument that §1400(b) incorporates the broader definition of
corporate “residence” contained in the general venue statute, 28
U. S. C. §1391(c). 353 U. S., at 228. Congress has
not amended §1400(b) since this Court construed it in
Fourco, but it has amended §1391 twice. Section 1391 now
provides that, “[e]xcept as otherwise provided by law” and “[f]or
all venue purposes,” a corporation “shall be deemed to reside, if a
defendant, in any judicial district in which such defendant is
subject to the court’s personal jurisdiction with respect to the
civil action in question.” §§1391(a), (c). The issue in this case
is whether that definition supplants the definition announced in
Fourco and allows a plaintiff to bring a patent infringement
lawsuit against a corporation in any district in which the
corporation is subject to personal jurisdiction. We conclude that
the amendments to §1391 did not modify the meaning of §1400(b) as
interpreted by
Fourco. We therefore hold that a domestic
corporation “resides” only in its State of incorporation for
purposes of the patent venue statute.
I
Petitioner, which is organized under Indiana
law and headquartered in Indiana, manufactures flavored drink
mixes.[
1] Respondent, which is
organized under Delaware law and has its principal place of
business in Illinois, is a competitor in the same market. As
relevant here, respondent sued petitioner in the District Court for
the District of Delaware, alleging that petitioner’s products
infringed one of respondent’s patents. Although petitioner is not
registered to conduct business in Delaware and has no meaningful
local presence there, it does ship the al-legedly infringing
products into the State.
Petitioner moved to dismiss the case or transfer
venue to the District Court for the Southern District of Indiana,
arguing that venue was improper in Delaware. See 28
U. S. C. §1406. Citing
Fourco’s holding that a
corporation resides only in its State of incorporation for patent
infringement suits, petitioner argued that it did not “resid[e]” in
Delaware under the first clause of §1400(b). It further argued that
it had no “regular and established place of business” in Delaware
under the second clause of §1400(b). Relying on Circuit precedent,
the District Court rejected these arguments, 2015 WL 5613160 (D
Del., Sept. 24, 2015), and the Federal Circuit denied a petition
for a writ of mandamus,
In re TC Heartland LLC, 821
F. 3d 1338 (2016). The Federal Circuit concluded that
subsequent statutory amendments had effectively amended §1400(b) as
construed in
Fourco, with the result that §1391(c) now
supplies the definition of “resides” in §1400(b). 821 F. 3d,
at 1341–1343. Under this logic, because the District of Delaware
could exercise personal jurisdiction over petitioner, petitioner
resided in Delaware under §1391(c) and, therefore, under §1400(b).
We granted certiorari, 580 U. S. ___ (2016), and now
reverse.
II
A
The history of the relevant statutes provides
important context for the issue in this case. The Judiciary Act of
1789 permitted a plaintiff to file suit in a federal district court
if the defendant was “an inhabitant” of that district or could be
“found” for service of process in that district. Act of Sept. 24,
1789, §11, 1Stat. 79. The Act covered patent cases as well as other
civil suits.
Stonite Products Co. v.
Melvin Lloyd
Co., 315 U. S. 561, 563 (1942) . In 1887, Congress amended
the statute to permit suit only in the district of which the
defendant was an inhabitant or, in diversity cases, of which either
the plaintiff or defendant was an inhabitant. See Act of Mar. 3,
1887, §1, 24 Stat. 552; see also
Stonite,
supra, at
563–564.
This Court’s decision in
In re
Hohorst, 150 U. S. 653 –662 (1893), arguably suggested
that the 1887 Act did not apply to patent cases. As a result, while
some courts continued to apply the Act to patent cases, others
refused to do so and instead permitted plaintiffs to bring suit (in
line with the pre-1887 regime) anywhere a defendant could be found
for service of process. See
Stonite,
supra, at
564–565. In 1897, Congress resolved the confusion by enacting a
patent specific venue statute. See Act of Mar. 3, 1897, ch. 395,
29Stat. 695. In so doing, it “placed pat-ent infringement cases in
a class by themselves, outside the scope of general venue
legislation.”
Brunette Machine Works, Ltd. v.
Kockum
Industries, Inc., 406 U. S. 706, 713 (1972) . This new
statute (§1400(b)’s predecessor) permitted suit in the district of
which the defendant was an “inhabitant,” or a district in which the
defendant both maintained a “regular and established place of
business” and committed an act of infringement. 29Stat. 695. At the
time, a corporation was understood to “inhabit”
only the
State in which it was incorporated.
Shaw v.
Quincy Mining
Co., 145 U. S. 444 –450 (1892).
The Court addressed the scope of §1400(b)’s
predecessor in
Stonite. In that case, the two defendants
inhabited different districts within a single State. The plaintiff
sought to sue them both in the same district, invoking a then
governing general venue statute that, if applicable, permitted it
to do so. 315 U. S., at 562–563. This Court rejected the
plaintiff’s venue choice on the ground that the patent venue
statute constituted “the exclusive provision controlling venue in
patent infringement proceedings” and thus was not supplemented or
modified by the general venue provisions.
Id., at 563. In
the Court’s view, the patent venue statute “was adopted to define
the exact jurisdiction of the federal courts in actions to enforce
patent rights,” a purpose that would be undermined by interpreting
it “to dovetail with the general provisions relating to the venue
of civil suits.”
Id., at 565–566. The Court thus held that
the patent venue statute “alone should control venue in patent
infringement proceedings.”
Id., at 566.
In 1948, Congress recodified the patent venue
statute as §1400(b). See Act of June 25, 1948, 62Stat. 936. The
recodified provision, which remains unaltered today, states that
“[a]ny civil action for patent infringement may be brought in the
judicial district where the defendant resides, or where the
defendant has committed acts of infringement and has a regular and
established place of business.” 28 U. S. C. §1400(b)
(1952 ed.). This version differs from the previous one in that it
uses “resides” instead of “inhabit[s].” At the same time, Congress
also enacted the general venue statute, §1391, which defined
“residence” for corporate defendants. That provision stated that
“[a] corporation may be sued in any judicial district in which it
is incorporated or licensed to do business or is doing business,
and such judicial district shall be regarded as the residence of
such corporation for venue purposes.” §1391(c) (1952 ed.).
Following the 1948 legislation, courts reached
differing conclusions regarding whether §1400(b)’s use of the word
“resides” incorporated §1391(c)’s definition of “residence.” See
Fourco, 353 U. S., at 224, n. 3 (listing cases).
In
Fourco, this Court reviewed a decision of the Second
Circuitholding that §1391(c) defined residence for purposes of
§1400(b), “just as that definition is properly . . .
incorporated into other sections of the venue chapter.”
Trans-mirra Prods. Corp. v.
Fourco Glass Co., 233
F. 2d 885, 886 (1956). This Court squarely rejected that
interpretation, reaffirming
Stonite’s holding that §1400(b)
“is the sole and exclusive provision controlling venue in patent
infringement actions, and . . . is not to be supplemented
by . . . §1391(c).” 353 U. S., at 229. The Court
observed that Congress enacted §1400(b) as a standalone venue
statute and that nothing in the 1948 recodification evidenced an
intent to alter that status. The fact that §1391(c) by “its terms”
embraced “all actions” was not enough to overcome the fundamental
point that Congress designed §1400(b) to be “complete, independent
and alone controlling in its sphere.”
Id., at 228.
The Court also concluded that “resides” in the
recodified version of §1400(b) bore the same meaning as
“inhabit[s]” in the pre-1948 version. See
id., at 226
(“[T]he [w]ords ‘inhabitant’ and ‘resident,’ as respects venue, are
synonymous” (internal quotation marks omitted)). The substitution
of “resides” for “inhabit[s]” thus did not suggest any alteration
in the venue rules for corporations in patent cases. Accordingly,
§1400(b) continued to apply to domestic corporations in the same
way it always had: They were subject to venue only in their States
of incorporation. See
ibid. (The use of “resides” “negat[es]
any intention to make corporations suable, in patent infringement
cases, where they are merely ‘doing business,’ because those
synonymous words [“inhabitant” and “resident”] mean
domicile
and, in respect of corporations, mean the state of incorporation
only”).
B
This landscape remained effectively unchanged
until 1988, when Congress amended the general venue statute,
§1391(c), to provide that “[f]or purposes of venue under this
chapter, a defendant that is a corporation shall be deemed to
reside in any judicial district in which it is subject to personal
jurisdiction at the time the action is commenced.” Judicial
Improvements and Access to Justice Act, §1013(a), 102Stat. 4669.
The Federal Circuit in
VE Holding Corp. v.
Johnson Gas
Appliance Co., 917 F. 2d 1574 (1990), announced its view
of the effect of this amendment on the meaning of the patent venue
statute. The court reasoned that the phrase “[f]or purposes of
venue under this chapter” was “exact and classic language of
incorporation,”
id., at 1579, and that §1391(c) accord-ingly
established the definition for all other venue statutes under the
same “chapter.”
Id., at 1580. Because §1400(b) fell within
the relevant chapter, the Federal Circuit concluded that §1391(c),
“on its face,” “clearly applies to §1400(b), and thus redefines the
meaning of the term ‘resides’ in that section.”
Id., at
1578.
Following
VE Holding, no new developments
occurred until Congress adopted the current version of §1391 in
2011 (again leaving §1400(b) unaltered). See Federal Courts
Jurisdiction and Venue Clarification Act of 2011, §202, 125Stat.
763. Section 1391(a) now provides that, “[e]xcept as otherwise
provided by law,” “this section shall govern the venue of all civil
actions brought in district courts of the United States.” And
§1391(c)(2), in turn, provides that, “[f]or all venue purposes,”
certain entities, “whether or not incorporated, shall be deemed to
reside, if a defendant, in any judicial district in which such
defendant is subject to the court’s personal jurisdiction with
respect to the civil action in question.” In its decision below,
the Federal Circuit reaffirmed
VE Holding, reasoning that
the 2011 amendments provided no basis to reconsider its prior
decision.
III
We reverse the Federal Circuit. In
Fourco, this Court definitively and unambiguously held that
the word “reside[nce]” in §1400(b) has a particular meaning as
applied to domestic[
2]
corporations: It refers only to the State of incorporation.
Congress has not amended §1400(b) since
Fourco, and neither
party asks us to reconsider our holding in that case. Accordingly,
the only question we must answer is whether Congress changed the
meaning of §1400(b) when it amended §1391. When Congress intends to
effect a change of that kind, it ordinarily provides a relatively
clear indication of its intent in the text of the amended
provision. See
United States v.
Madigan, 300
U. S. 500, 506 (1937) (“[T]he modification by implication of
the settled construction of an earlier and different section is not
favored”); A. Scalia & B. Garner, Reading Law 331 (2012) (“A
clear, authoritative judicial holding on the meaning of a
particular provision should not be cast in doubt and subjected to
challenge whenever a related though not utterly inconsistent
provision is adopted in the same statute or even in an affiliated
statute”).
The current version of §1391 does not contain
any indication that Congress intended to alter the meaning of
§1400(b) as interpreted in
Fourco. Although the current
version of §1391(c) provides a default rule that applies “[f]or all
venue purposes,” the version at issue in
Fourco similarly
provided a default rule that applied “for venue purposes.” 353
U. S., at 223 (internal quotation marks omitted). In this
context, we do not see any material difference between the two
phrasings. See
Pure Oil Co. v.
Suarez, 384 U. S.
202 –205 (1966) (construing “ ‘for venue purposes’ ” to
cover “all venue statutes”). Respondent argues that “ ‘all
venue purposes’ means ‘all venue purposes’—not ‘all venue purposes
except for patentvenue.’ ” Brief for Respondent 21. The
plaintiffs in
Fourco advanced the same argument. See 353
U. S., at 228 (“The main thrust of respondents’ argument is
that §1391(c) is clear and unambiguous and that its terms include
all actions—including patent infringement actions”). This Court was
not persuaded then, and the addition of the word “all” to the
already comprehensive provision does not suggest that Congress
intended for us to reconsider that conclusion.
This particular argument is even weaker under
the current version of §1391 than it was under the provision in
place at the time of
Fourco, because the current provision
includes a saving clause expressly stating that it does not apply
when “otherwise provided by law.” On its face, the version of
§1391(c) at issue in
Fourco included no exceptions, yet this
Court still held that “resides” in §1400(b) retained its original
meaning contrary to §1391(c)’s default definition.
Fourco’s
holding rests on even firmer footing now that §1391’s saving clause
expressly contemplates that certain venue statutes may retain
definitions of “resides” that conflict with its default definition.
In short, the saving clause makes explicit the qualification that
this Court previously found implicit in the statute. See
Pure
Oil,
supra, at 205 (interpreting earlier version of
§1391 to apply “to all venue statutes using residence as a
criterion, at least in the absence of contrary restrictive
indications in any such statute”). Respondent suggests that the
saving clause in §1391(a) does not apply to the definitional
provisions in §1391(c), Brief for Respondent 31–32, but that
interpretation is belied by the text of §1391(a), which makes clear
that the saving clause applies to the entire “section.” See
§1391(a)(1) (“Except as otherwise provided by law— . . .
this
section shall govern the venue of all civil actions”
(emphasis added)).
Finally, there is no indication that Congress in
2011 ratified the Federal Circuit’s decision in
VE Holding.
If anything, the 2011 amendments undermine that decision’s
rationale. As petitioner points out,
VE Holding relied
heavily—indeed, almost exclusively—on Congress’ decision in 1988 to
replace “for venue purposes” with “[f]or purposes of venue
under
this chapter” (emphasis added) in §1391(c). Congress deleted
“under this chapter” in 2011 and worded the current version of
§1391(c) almost identically to the original version of the statute.
Compare §1391(c) (2012 ed.) (“[f]or all venue purposes”) with
§1391(c) (1952 ed.) (“for venue purposes”). In short, nothing in
the text suggests congressional approval of
VE Holding.
* * *
As applied to domestic corporations,
“reside[nce]” in §1400(b) refers only to the State of
incorporation. Accordingly, we reverse the judgment of the Court of
Appeals and remand the case for further proceedings consistent with
this opinion.
It is so ordered.
Justice Gorsuch took no part in the
consideration or decision of this case.
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