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Issue: was the District court of Florida correct to refuse to enforce the forum-
selection clause created between a US company and a German Corporation?
Holding: The court held that the forum-selection clause was valid and the case
was remanded for a determination of whether enforcement was unreasonable.
Rule: "It is settled … that parties to a contract may agree in advance to submit
to the jurisdiction of a given court , to permit notice to be served by the
opposing party, or even to waive notice altogether."
Reasoning: The rig would have traveled over many jurisdictions, and it would be
very inconvenient for both parties if a suit could have jurisdiction wherever an
accident occurs. That is why the forum-selection clause was established in this
contract. It eliminates those uncertainties, and helps international trade,
commerce and contracting.
Notes:
It will facilitate commerce. It would be a burden to use the jurisdiction of any
place between the 2 transportation points if the accident happens there. Reducing
the uncertainty reduces costs and facilitates commerce.
2nd holding: what connection does london have with this dispute? Nothing. Why
does US Supreme court think London has jurisdiction. (london courts were willing
to do this).. Parties can by private agreement create jurisdiction where it
otherwise would not exist., creates a mutual forum (helps international commerce).
Courts have self-defense mechanisms if they don’t like it.
Class Notes