Ryze Claims Solutions, LLC v. Magnus-Stinson, No. 19-2930 (7th Cir. 2020)Annotate this Case
RYZE, an Indiana business, employs remote workers across the U.S., including Billings, who signed an employment agreement with a forum‐selection clause providing for litigation in an Indiana state court or in the Southern District of Indiana. Billings filed suit in California state court. alleging state law claims and violations of the Fair Labor Standards Act, on behalf of himself and other current and former RYZE employees nationwide.
RYZE removed the action to the Eastern District of California, which concluded that Billings had failed to show why the forum‐selection clause should not control and transferred venue under 28 U.S.C. 1404(a) to the Southern District of Indiana. That court granted RYZE summary judgment on Billings’s federal claims. The district court then, sua sponte, returned the case to the Eastern District of California, explaining that its docket was congested and that the California court was familiar with California labor law. When the case was docketed again in the Eastern District of California, RYZE petitioned the Seventh Circuit for a writ of mandamus directing the Southern District of Indiana to request that the Eastern District of California return the action to the Southern District of Indiana. The Seventh Circuit granted that petition, noting that forum‐selection clauses should be given “‘controlling weight in all but the most exceptional cases.’” No exceptional circumstances exist here.