Thompson v. Greenwood ( 2007 )


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  •                              RECOMMENDED FOR FULL-TEXT PUBLICATION
    Pursuant to Sixth Circuit Rule 206
    File Name: 07a0445p.06
    UNITED STATES COURT OF APPEALS
    FOR THE SIXTH CIRCUIT
    _________________
    X
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    REUBEN WALTER THOMPSON and PATRICIA J.
    -
    THOMPSON (06-6430); and LEONARD W. JORDAN
    -
    (06-6519),
    Petitioners-Appellants, -
    Nos. 06-6430/6519
    ,
    >
    v.                                        -
    -
    -
    Respondents-Appellees. -
    MADALYN S. GREENWOOD, et al.,
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    N
    Appeal from the United States District Court
    for the Western District of Tennessee at Memphis.
    Nos. 04-02765; 04-02766; 04-02979—
    Bernice B. Donald, District Judge.
    Argued: September 10, 2007
    Decided and Filed: November 8, 2007
    Before: BOGGS, Chief Judge; and MARTIN and SUTTON, Circuit Judges.
    _________________
    COUNSEL
    ARGUED: Holly W. Schumpert, LAW OFFICE OF HOLLY W. SCHUMPERT, Memphis,
    Tennessee, for Appellants. Kelsi Brown Corkran, UNITED STATES DEPARTMENT OF
    JUSTICE, Washington, D.C., for Appellee. ON BRIEF: Holly W. Schumpert, LAW OFFICE OF
    HOLLY W. SCHUMPERT, Memphis, Tennessee, Steven F. Bilsky, Memphis, Tennessee, for
    Appellants. Jonathan H. Levy, William Kanter, UNITED STATES DEPARTMENT OF JUSTICE,
    Washington, D.C., for Appellee.
    _________________
    OPINION
    _________________
    BOGGS, Chief Judge. This consolidated appeal arises from a Title 11 bankruptcy action
    brought on behalf of two sets of debtors, all of whom are residents of the Northern District of
    Mississippi, who filed their actions in the Western District of Tennessee (Memphis Division) for
    reasons of convenience. The United States Trustee’s Office for the Northern District of Mississippi
    moved to transfer the cases. This case presents a single issue on appeal: whether a bankruptcy court
    may retain a case filed in an improper venue under 28 U.S.C. § 1408 over a timely objection by an
    interested party, if it determines that retention is in the interests of justice or for the convenience of
    1
    Nos. 06-6430/6519                   Thompson, et al. v. Greenwood, et al.                           Page 2
    the parties. The district court answered that question in the negative and ordered the cases
    transferred to the Northern District of Mississippi. We affirm.
    I
    Debtors Reuben and Patricia Thompson and Leonard Jordan (“the debtors”), all of whom
    reside in the Northern Mississippi suburbs of Memphis, filed voluntary petitions for bankruptcy in
    the United States Bankruptcy Court for the Western District of Tennessee in June 2004. In both
    cases, the United States Trustee in the Northern District of Mississippi filed motions to dismiss or
    transfer on the ground that venue was lacking because the debtors did not reside in the district, as
    required by 28 U.S.C. § 1408. Although the debtors conceded, both then and now, that venue in
    Tennessee was “technically improper,” Appellants’ Br. at 9, they maintained that, both as a matter
    of statutory construction and for equitable reasons, the bankruptcy judges had inherent authority to
    retain the cases in the interest of justice or for the convenience of the parties. The Trustee argued
    that a proper interpretation of the applicable venue statutes left the judge with no discretion to retain
    the cases, and that the court was required either to dismiss or transfer the cases under the plain
    language of 28 U.S.C. § 1406.
    The decisions of the bankruptcy judges in the two cases were contradictory. In the case of
    Mr. Jordan, Chief Bankruptcy Judge David S. Kennedy agreed with the debtor’s position, holding
    that “the court, in its discretion, pursuant to its inherent or implicit authority, . . . may retain ‘cases’
    filed in an improper district ‘for the convenience of the parties’ or ‘in the interest of justice’ even
    if a timely motion is filed to contest venue . . . .” In re Jordan, 
    313 B.R. 242
    , 264 (Bankr. W.D.
    Tenn. 2004). In contrast, in the case of the Thompsons, Bankruptcy Judge Jennie D. Latta, relying
    on the reasoning of her prior decision in In re McDonald, 
    219 B.R. 804
    (Bankr. W.D. Tenn. 1998),
    found that venue was not proper in the Western District of Tennessee and ordered the case
    transferred to Mississippi. Both cases were appealed to the District Court for the Western District
    of Tennessee, which thoroughly analyzed the applicable venue statutes and determined that the
    Trustee’s position was “the most coherent reading of the statute as a whole in conformity with
    accepted norms of statutory construction.” In re MacDonald, 
    356 B.R. 416
    , 428 (W.D. Tenn. 2006).
    The court therefore affirmed Judge Latta’s ruling in In re Thompson and reversed Chief Judge
    Kennedy’s ruling in In re Jordan. 
    Id. at 429.
    The debtors then appealed to this court.
    This issue has divided the lower courts, with a decided majority siding with the Trustee’s
    interpretation. See, e.g., U.S. Trustee v. Sorrells (In re Sorrells), 
    218 B.R. 580
    (B.A.P. 10th Cir.
    1998); Swinney v. Turner, 
    309 B.R. 638
    (M.D. Ga. 2004); Peachtree Lane Assocs. v. Granader (In
    re Peachtree Lane Assocs.), 
    188 B.R. 815
    (N.D. Ill. 1995); Micci v. Bank of New Haven (In re
    Micci), 
    188 B.R. 697
    (S.D. Fla. 1995); EDP Med. Computer Sys. v. United States (In re EDP Med.
    Computer Sys.), 
    178 B.R. 57
    (M.D. Pa. 1995); In re Great Lakes Hotel Assocs., 
    154 B.R. 667
    (E.D.
    Va. 1992); ICMR, Inc. v. Tri-City Foods, 
    100 B.R. 51
    (D. Kan. 1989); In re Ross, 
    312 B.R. 879
    (Bankr. W.D. Tenn. 2004) (Judge William H. Brown); In re Pannell, 
    243 B.R. 23
    (Bankr. S.D. Ohio
    1999); In re 
    McDonald, 219 B.R. at 806
    (Judge Jennie D. Latta); In re Columbia Western, Inc., 
    183 B.R. 660
    (Bankr. D. Mass. 1995); In re Petrie, 
    142 B.R. 404
    (Bankr. D. Nev. 1992); In re Sporting
    Club at Ill. Ctr., 
    132 B.R. 792
    (Bankr. N.D. Ga. 1991); In re Pick, 
    95 B.R. 712
    (Bankr. D.S.D.
    1989); In re Townsend, 
    84 B.R. 764
    (Bankr. N.D. Fla. 1988). A minority of courts, however, favors
    the debtors’ interpretation. See, e.g., U.S. Aviex Co. v. Aviex Int’l, Inc. (In re U.S. Aviex Co.), 
    96 B.R. 874
    (N.D. Ind. 1989); In re Brazzle, 
    321 B.R. 893
    (Bankr. W.D. Tenn. 2005) (Judge G. Harvey
    Boswell); In re 
    Jordan, 313 B.R. at 264
    (Chief Judge David S. Kennedy); In re Capital Hotel
    Group, 
    206 B.R. 190
    (Bankr. E.D. Mo. 1997); In re Lazaro, 
    128 B.R. 168
    (Bankr. W.D. Tex.
    Nos. 06-6430/6519                       Thompson, et al. v. Greenwood, et al.                                  Page 3
    1991).1 No other circuit court of appeals appears to have addressed this issue. We agree with the
    majority interpretation for the reasons that follow, and adopt it as the rule in this circuit. We
    therefore affirm.
    II
    “In a case which comes to us from bankruptcy court by way of an appeal from a decision of
    a district court, we review directly the decision of the bankruptcy court.” Brady-Morris v. Schilling
    (In re Kenneth Allen Knight Trust), 
    303 F.3d 671
    , 676 (6th Cir. 2002). “[W]e apply the clearly
    erroneous standard to the bankruptcy court’s findings of fact, and we review de novo the bankruptcy
    court’s conclusions of law.” 
    Ibid. In the present
    case, the facts are undisputed and the question is
    purely one of the proper interpretation of the applicable venue statutes.
    A
    As this court has recognized, a fundamental canon of statutory construction is that “when
    interpreting statutes, the language of the statute is the starting point for interpretation, and it should
    also be the ending point if the plain meaning of that language is clear.” United States v. Boucha, 
    236 F.3d 768
    , 774 (6th Cir. 2001) (internal quotation omitted). Venue in a Title 11 case is governed by
    28 U.S.C. § 1408, which reads, in pertinent part:
    [A] case under title 11 may be commenced in the district court for the district . . . in
    which the domicile, residence, principal place of business in the United States, or
    principal assets in the United States, of the person or entity that is the subject of such
    case have been located for the one hundred and eighty days immediately preceding
    such commencement . . . .
    28 U.S.C. § 1408 (2006). Under this standard, the debtors concede that venue is not proper in the
    Western District of Tennessee, or, at least, not “technically” proper. Appellants’ Br. at 9.
    Improperly venued cases are governed by 28 U.S.C. § 1406, which is headed “Cure or waiver of
    defects” and instructs:
    (a) The district court of a district in which is filed a case laying venue in the wrong
    division or district shall dismiss, or if it be in the interest of justice, transfer such case
    to any district or division in which it could have been brought.
    (b) Nothing in this chapter shall impair the jurisdiction of a district court of any
    matter involving a party who does not interpose timely and sufficient objection to
    venue.
    28 U.S.C. § 1406(a)-(b) (2006). Although this section does not specifically mention Title 11
    bankruptcy cases, its broad language plainly encompasses all improperly venued cases of whatever
    variety. Presumably, since bankruptcy judges “constitute a unit of the district court,” 28 U.S.C.
    1
    There are also a number of pre-1987 cases supporting the debtors’ view. See, e.g., In re Baltimore Food Sys.,
    
    71 B.R. 795
    (Bankr. D.S.C. 1986); In re Boeckman, 
    54 B.R. 110
    (Bankr. D.S.D. 1985); In re Leonard, 
    55 B.R. 106
    (Bankr. D.D.C. 1985); see also In re 
    Jordan, 313 B.R. at 261
    (citing these cases in support of the minority position).
    These older authorities are less persuasive because, as will be explained infra, they were all decided prior to the 1987
    Advisory Committee Note to Federal Rule of Bankruptcy Procedure 1014, which clearly favors the majority
    interpretation. Indeed, the same judge who decided In re Boeckman in 1985 later decided In re Pick, 
    95 B.R. 712
    (Bankr. D.S.D. 1989) (adopting the majority interpretation), and cited the 1987 note in support. 
    Id. at 715.
    Nos. 06-6430/6519                       Thompson, et al. v. Greenwood, et al.                                   Page 4
    2
    § 151 (2006), this includes Title 11 cases. 3
    Therefore, under § 1406, if a case is brought in an
    improper venue and an interested party timely objects, a district court has only two options:
    (1) dismiss the case, or (2) transfer the case to a jurisdiction of proper venue, if it be in the interest
    of justice.
    The debtors, however, argue that § 1406 is inapplicable to bankruptcy cases because another,
    more specific provision applies—§ 1412, which is headed “Change of venue”and reads: “A district
    court may transfer a case or proceeding under title 11 to a district court for another district, in the
    interest of justice or for the convenience of the parties.” 28 U.S.C. § 1412 (2006). The debtors
    argue that the use of the term “may” implies that the court is not required to transfer a case, but may
    also retain it. See In re 
    Jordan, 313 B.R. at 256
    (quoting In re 
    Lazaro, 128 B.R. at 168
    , 172-74,
    which in turn quotes In re 
    Boeckman, 54 B.R. at 111
    : “[T]he permissive language used in Section
    1412 . . . merely says that a district court ‘may’ transfer a case to another district; it does not say it
    must transfer the case . . . .”). While at first glance this might appear to be a plausible interpretation,
    it erroneously assumes that § 1412 applies to both properly and improperly venued cases. If this
    assumption were accurate, and the debtors’ interpretation adopted, it would render § 1408 a nullity,
    or at least significantly diminish its importance. Under such an interpretation, parties would be free
    to disregard the venue strictures of § 1408 and file their Title 11 cases in any court in the country,
    so long as the bankruptcy judge thought the choice of venue just or convenient—factors nowhere
    mentioned in § 1408. Because courts must “give effect, if possible, to every clause and word of a
    statute rather than . . . emasculate an entire section,” Bennett v. Spear, 
    520 U.S. 154
    , 173 (1997)
    (internal quotation omitted), the better interpretation is that § 1412 applies only to bankruptcy cases
    that are properly venued in the first instance; § 1406 applies to improperly venued cases. This
    makes sense given that § 1406 governs “[c]ure or waiver of [venue] defects,” whereas § 1412 merely
    governs “[c]hange of venue.” Thus, § 1412 is no “more specific” in application to this case than
    is § 1406.
    Federal Rule of Bankruptcy Procedure 1014, though not carrying the weight of a statute, also
    supports this interpretation. The rule implements the provisions of both § 1406 and § 1412 under
    the heading “Dismissal and Change of Venue,” and divides cases into two groups:
    (1) Cases filed in proper district
    If a petition is filed in a proper district, on timely motion of a party in interest, and
    after hearing on notice to the petitioners, the United States trustee, and other entities
    as directed by the court, the case may be transferred to any other district if the court
    determines that the transfer is in the interest of justice or for the convenience of the
    parties.
    (2) Cases filed in improper district
    2
    The debtors attempt to parse the word “case” to show that a bankruptcy “case” is not the same thing as a
    district court “case” as that term is used in § 1406, and thus § 1406 does not apply. Appellants’ Br. at 16-17; see also
    In re 
    Jordan, 313 B.R. at 249-50
    , 255 (making a similar argument and concluding that the “provisions of . . . § 1406 that
    are applicable in the United States district court do not apply to bankruptcy ‘cases’ under the Bankruptcy Code”). While
    we recognize that there are differences between bankruptcy cases and civil cases more generally, this alone is hardly a
    compelling reason to conclude that the word “case” in § 1406 has a different meaning from the word “case” used just
    two sections later in § 1408 (“[A] case under title 11 may be commenced in the district court . . . .”). Rather, we
    conclude that bankruptcy cases, like other cases, are encompassed by the plain language of § 1406.
    3
    The United States Trustee is an interested party by statute. See 11 U.S.C. § 307 (2006) (“The United States
    Trustee may raise and may appear and be heard on any issue in any case or proceeding under this title . . . .”); see also
    In re Miles, 
    330 B.R. 848
    , 849-51 (Bankr. M.D. Ga. 2004) (holding that the Trustee has standing to bring a motion to
    dismiss or transfer a Title 11 case due to improper venue).
    Nos. 06-6430/6519                        Thompson, et al. v. Greenwood, et al.                                    Page 5
    If a petition is filed in an improper district, on timely motion of a party in interest and
    after hearing on notice to the petitioners, the United States trustee, and other entities
    as directed by the court, the case may be dismissed or transferred to any other district
    if the court determines that transfer is in the interest of justice or for the convenience
    of the parties.
    Fed. R. Bankr. P. 1014(a). Thus, part (a)(1) of the rule provides that if a case is properly venued,
    it may be transferred (in accord with § 1412). Part (a)(2) states that if, on the other hand, the case
    is improperly venued, it may be dismissed or transferred (in accord with § 1406). As in § 1412, the
    use of seemingly permissive language (“may be transferred,” rather than “must be transferred”)
    could be interpreted as granting the court authority to also retain the case. It could, that is, if such
    an interpretation were not explicitly foreclosed by the rule’s accompanying advisory note:
    Formerly, 28 U.S.C. § 1477 authorized a court either to transfer or retain a case
    which had been commenced in a district where venue was improper. However, 28
    U.S.C. § 1412, which supersedes 28 U.S.C. § 1477, authorizes only the transfer of
    a case. The rule is amended to delete the reference to retention of a case commenced
    in the improper district. Dismissal of a case commenced in the improper district as
    authorized by 28 U.S.C. § 1406 has been added to the rule.
    Fed. R. Bankr. P. 1014 advisory    committee’s note. The advisory note makes clear that, since the
    repeal of 28 U.S.C. § 1477,4 which explicitly permitted retention of an improperly venued case,
    there is no longer any authority for such retention, and only dismissal or transfer of the case is
    authorized. While we acknowledge that this note (and, indeed, the entire rule) must give way to
    conflicting statutory authority under some circumstances, see 28 U.S.C. § 2075 (2006) (stating that
    the “rules shall not abridge, enlarge, or modify any substantive right”), there is no conflict between
    the rule and any applicable statute on the specific question at issue in this case—whether a
    bankruptcy court has authority to retain an improperly venued case over the timely objection of an
    interested party. Both Rule 1014(a)(2) and § 1406 answer that question in the negative.
    To be sure, as the district court recognized, there is some conflict between Rule 1014(a)(2)
    and § 1406 vis-à-vis the transfer of an improperly venued case. See In re 
    MacDonald, 356 B.R. at 427-28
    . Specifically, the statute permits transfer only to a district where venue would have been
    proper in the first instance, and only in the interest of justice. In contrast, Rule 1014(a)(2) appears
    to permit transfer to “any other district,” whether the case could have been brought there originally
    or not, and includes the “convenience of the parties” as an additional consideration. Compare 28
    U.S.C. § 1406 with Fed. R. Bankr. P. 1014(a)(2). Although resolving these apparent discrepancies
    is not strictly necessary to render a decision in the case before us, in the interest of providing
    guidance to the lower courts in future bankruptcy cases, we note that the statute trumps the rule. See
    Fed. R. Bankr. P. 9030 (“These rules shall not be construed to extend or limit the jurisdiction of the
    courts or the venue of any matters therein.”). Thus, where a bankruptcy case is brought in an
    improper venue, and an interested party timely objects, the court must either dismiss it or transfer
    4
    28 U.S.C. § 1477 formerly governed venue in bankruptcy cases. It clearly authorized bankruptcy courts to
    retain improperly venued case in the interest of justice or for the convenience of the parties. See 28 U.S.C. § 1477 (1982)
    (repealed). Unfortunately for the debtors, it was repealed as part of the Bankruptcy Amendments and Federal Judgeship
    Act of 1984, which restructured the bankruptcy courts following the Supreme Court’s decision in Northern Pipeline
    Const. Co. v. Marathon Pipeline Co., 
    458 U.S. 50
    (1982) (holding that the bankruptcy courts constituted an
    impermissible delegation of Article III judicial powers to non-Article III courts). It is unclear precisely why § 1477 was
    repealed. Compare In re 
    Jordan, 313 B.R. at 253
    n.11, 255 (noting that the legislative history is “sparse” but suggesting
    that the repeal may have been a drafting oversight caused by Congress’s rush to resolve the jurisdictional problems
    caused by Northern Pipeline) with In re 
    MacDonald, 356 B.R. at 425
    (adopting “a presumption of fundamental
    legislative competence on the part of Congress” and concluding that the repeal was purposeful). Whatever the reason
    for its repeal, however, the simple fact is that § 1477 no longer exists, and we cannot pretend otherwise.
    Nos. 06-6430/6519                       Thompson, et al. v. Greenwood, et al.                                    Page 6
    it to a jurisdiction of proper venue in accordance with § 1406, notwithstanding any differing
    language in Rule 1014(a)(2). Note, however, that no such conflict arises with regard to cases that
    are properly venued in the first instance. Compare 28 U.S.C. § 1412 with Fed. R. Bankr. P.
    1014(a)(1) (both authorizing transfer to another district, without limitation, in the interest of justice
    or for the convenience of the parties). Thus, a case that is properly venued in the first instance could
    be transferred to another district (even one where the case could not originally have been brought)
    in accordance with § 1412 and Rule 1014(a)(1).
    Those courts adhering to the minority view take issue with this interpretation because of the
    seeming illogic of this rule—that a case that is filed in an improper venue must be dismissed or
    transferred to a proper venue, but one that is first filed in a proper venue can be transferred to a
    district where venue is improper. See, e.g., In re 
    Lazaro, 128 B.R. at 172
    (“It is an odd construction
    indeed to maintain that New Mexico would be free to transfer this case to the Western District of
    Texas . . . , but that the Western District of Texas is not free to retain the self-same case.”). We,
    however, are inclined to agree that “[t]he statutory scheme . . . merely recognizes that it is the role
    of the ‘home’ court to make [the] determination [whether to transfer a case to another district].” In
    re 
    Petrie, 142 B.R. at 407
    . Whether this framework is the best way to manage venue in bankruptcy
    cases is not for us to decide; it is enough that the textual authority inescapably leads to our
    conclusion. Thus, we agree “that fixing any perceived problem is a job for Congress and not the
    courts.” 
    Swinney, 309 B.R. at 641
    .
    B
    Those courts adhering to the majority view, including the district court here, have found
    interpretive guidance in Connecticut National Bank v. Germain, 
    503 U.S. 249
    (1992), in which the
    Supreme Court faced a similar problem of statutory construction. See, e.g., In re 
    MacDonald, 356 B.R. at 426-27
    ; In re 
    Sorrells, 218 B.R. at 586-87
    ; U.S. Trustee v. Swinney (In re Swinney), 
    300 B.R. 388
    , 392 (Bankr. M.D. Ga. 2003). We, too, find the case instructive.
    In Connecticut National Bank, also a bankruptcy case, the Court examined two allegedly
    contradictory statutory provisions that governed interlocutory 
    appeals. 503 U.S. at 250-51
    . One
    provision was generally applicable to all cases (rather than specific to only bankruptcy cases) but
    directly answered the disputed question (analogous to § 1406 here). 
    Id. at 251.
    The other provision
    was specific to bankruptcy cases but was textually silent on the disputed question, although the
    legislative history purportedly supported the view that the bankruptcy-specific statute superseded
    the more general statute (analogous to § 1412 here). 
    Id. at 253.
    The Court began with the
    presumption that “a legislature says in a statute what it means and means in a statute what it says,”
    
    id. at 253-54,
    and observed that “so long as there is no positive repugnancy between two laws, . .
    . a court must give effect to both.” 
    Id. at 253.
    The Court held that, even though the two sections
    overlapped to some extent, there was no “positive repugnancy” between them because each applied
    to some cases that the other did not. 
    Id. Thus, the
    plain language of the more general statute
    governed the case, and the Court refused to even consider the legislative history: “When the words
    of a statute are unambiguous . . . judicial inquiry is complete.” 
    Id. at 254.
            Connecticut National Bank is analogous to the case before us. Even more so than the statutes
    at issue in that case, there is no “positive repugnancy” between §§ 1406 and 1412—the5 former
    applies only to improperly venued cases, and the latter applies only to properly venued ones. Those
    5
    Indeed, the cases are similar enough that one could substitute “§ 1406” and “§ 1412” for the two provisions
    at issue in Connecticut National Bank:
    [J]udicial inquiry into the applicability of § [1406] begins and ends with what § [1406] does say and
    with what § [1412] does not. . . . [N]owhere else, whether in [§ 1412] or any other statute, has
    Nos. 06-6430/6519                        Thompson, et al. v. Greenwood, et al.                                   Page 7
    courts that have examined Connecticut National Bank agree that its interpretive methodology
    supports the Trustee’s view. See In re 
    Swinney, 300 B.R. at 392
    (“As in Connecticut National Bank,
    there is one bankruptcy specific code section that is silent [§ 1412] and one section, while not
    bankruptcy specific, that addresses the issue before the Court [§ 1406]. Therefore, 28 U.S.C. § 1406
    applies . . . .”); 
    Sorrells, 218 B.R. at 587
    (“Since there is no bankruptcy-specific statute applicable
    to improperly venued cases, section 1406(a) must apply in bankruptcy . . . .”). It does not appear
    that any of those courts endorsing the opposing view have attempted to grapple with Connecticut
    National Bank. See In re 
    Swinney, 300 B.R. at 392
    (noting that only one case favoring the debtors’
    interpretation has been    decided post-Connecticut National Bank and that that case did not address
    the Court’s analysis).6
    In sum, textual analysis—especially in light of Connecticut National Bank—simply does not
    support the debtors’ interpretation.
    C
    Because we find that the plain text of § 1406 governs this case, it is not necessary—indeed,
    it would be inappropriate—to explore the legislative history surrounding the repeal of former
    § 1477. See Conn. Nat. 
    Bank, 503 U.S. at 254
    . Suffice it to say, the legislative history (as is so
    often the case) is hardly definitive one way or the other. Compare In re 
    Jordan, 313 B.R. at 257
    (concluding that the legislative history supports the view that Congress did not intend to change
    bankruptcy venue by repealing § 1477) with In re 
    MacDonald, 356 B.R. at 425
    (concluding that the
    “statutory history simply does not support the proposition that Congress intended to maintain the
    status quo”). Similarly, the equitable considerations cited by the debtors and those courts adhering
    to their viewpoint cannot trump the plain meaning of the statutory authority, even if the
    consequences of requiring a debtor to file his case in a proper venue were as dire as the debtors make
    them out to be. See Reno v. Bossier Parish Sch. Bd., 
    520 U.S. 471
    , 485 (1997) (“[I]t is well
    established that courts of equity can no more disregard statutory and constitutional requirements and
    provisions than can courts of law.”) (internal quotation omitted).
    III
    For the reasons set forth above, we hold that (1) the venue requirements of 28 U.S.C. § 1408
    are mandatory, not optional; (2) 28 U.S.C. § 1412 applies only to bankruptcy cases filed in a proper
    venue; (3) 28 U.S.C. § 1406 applies to cases, including bankruptcy cases, filed in an improper
    venue; and (4) Federal Rule of Bankruptcy Procedure 1014(a)(2) must be interpreted as authorizing
    the transfer of an improperly venued case only to a district in which the case could have originally
    been brought, and only in the interest of justice, in accordance with the plain language of § 1406.
    See In re 
    MacDonald, 356 B.R. at 428
    . The decision of the district court is therefore AFFIRMED.
    Congress indicated that the unadorned words of [§ 1406] are in some way limited by implication. “It
    would be dangerous in the extreme to infer . . . that a case for which the words of an instrument
    expressly provide, shall be exempted from its operation.” Sturges v. Crowninshield, 
    4 Wheat. 122
    ,
    202, 
    4 L. Ed. 529
    (1819) . . . 
    . 503 U.S. at 254
    .
    6
    The debtors address the case only on the penultimate page of their reply brief, where they appear to argue that
    the “positive repugnancy” spoken of in Connecticut National Bank in fact exists in this case. Appellants’ Reply Br. at
    24. As 
    explained supra
    , however, § 1406 and § 1412 each apply to cases that the other does not, and therefore there is
    no repugnancy between them, as the Court defined the term.