Multistate Bar Examination Practice Question

Venue is governed by 28 U.S.C. § 1391. Because Alpha is the sole defendant, venue is proper only in a judicial district where Alpha "resides"-that is, any district in which it is subject to personal jurisdiction with respect to the action (§ 1391(b)(1), (c)(2))-or where a substantial part of the events giving rise to the claim occurred (§ 1391(b)(2)). No events occurred in State Z, and Alpha lacks the contacts necessary for personal jurisdiction there, so venue in State Z is improper. Under 28 U.S.C. § 1406(a), a court faced with an action filed in the wrong district must dismiss or, in the interest of justice, transfer the case to a district in which it could have been brought. Because Alpha could have been sued in a district in State X where it resides, the appropriate disposition is to transfer the case to that district. Dismissal is unnecessary, and neither the plaintiff's residence nor the mere existence of diversity jurisdiction can cure the venue defect.