PLS IV, LLC v. B&B Theatres Operating Company, Inc.; PLS IV, LLC v. The Marcus Corporation and Marcus Theatres, LLC

Summary

The United States District Court for the Eastern District of Texas denied Marcus Corporation’s motion to dismiss for improper venue in a patent infringement action. Applying Fifth Circuit alter-ego principles, the Court held that venue could be imputed from subsidiary Marcus Theatres, LLC to its parent based on the totality of the circumstances, including shared ownership, officers, headquarters, business functions, and accounting responsibilities.

Holdings

1. Venue may be imputed from a subsidiary to its parent corporation when the entities are so closely integrated that the corporate separateness between them is insufficient for venue purposes.
2. The five Hargrave factors, rather than the twelve Bridas factors, appropriately guide an alter-ego inquiry directed to imputing venue.
3. Plaintiff met its burden to establish that Marcus Theatres was Marcus Corporation's alter ego for purposes of imputing venue.

Questions Presented

1. Whether venue may be imputed from a subsidiary to its parent corporation under an alter ego theory.
2. Whether the evidence established that Marcus Theatres was the alter ego of Marcus Corporation under the applicable Fifth Circuit factors.
3. Whether Marcus Corporation's motion to dismiss for improper venue should be granted.

Disposition

dismissed