stating that a forum-selection clause may be held invalid upon a showing of fraud, undue influence, or overweening bargaining power, and that a valid forum-selection clause is still unenforceable upon a showing that (1) enforcement of the clause would contravene a strong public policy of the forum in which suit was filed or (2) the balance of convenience is strongly in favor of litigation in the forum in which suit was filed, and litigation in the forum identified in the clause would be so manifestly and gravely inconvenient to the resisting party that the resisting party effectively would be deprived of a meaningful day in court
How later courts described this case
- stating that a forum-selection clause may be held invalid upon a showing of fraud, undue influence, or overweening bargaining power, and that a valid forum-selection clause is still unenforceable upon a showing that (1) enforcement of the clause would contravene a strong public policy of the forum in which suit was filed or (2) the balance of convenience is strongly in favor of litigation in the forum in which suit was filed, and litigation in the forum identified in the clause would be so manifestly and gravely inconvenient to the resisting party that the resisting party effectively would be deprived of a meaningful day in court
- holding that forum and law selection clauses are prima facie valid if (1) the parties’ choice is not a product of “fraud, undue influence, or overweening bargaining power;” (2) the choice is not “unreasonable and unenforceable if the chosen forum is seriously inconvenient for the trial of the action;” and (3) enforcement would not “contravene a strong public policy of the forum in which suit is brought”
- holding that courts must give “full effect” to “the legitimate expectations of the parties, manifested in their freely negotiated agreement, by specifically enforcing the forum clause” absent a showing that “enforcement would be unreasonable and unjust, or that the clause was invalid for such reasons as fraud or overreaching”
- holding that forum-selection clauses, although not “historically ... favored,” are “prima facie valid,” and declaring that “the serious inconvenience of the contractual forum to one or both of the parties might carry greater weight in determining the reasonableness of the forum clause”
Written by the judges who cited it.
Later courts went against this
Reported overruled in part, on other grounds by Powerex Corp. v. Reliant Energy Services, Inc., 551 U.S. 224 (2007) — not on the Supreme Court's list
407 U.S. 1, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972), overruled in part on other grounds by Powerex Corp. v. Reliant Energy Services, Inc., 551 U.S. 224, 127 S.Ct. 2411, 168 L.Ed.2d 112 (2007).
Supreme Court of the United StatesJun 18, 20072 citing opinionsother groundsin partunconfirmed confidenceRead itReported overruled on other grounds by Lauro Lines S.R.L. v. Chasser, 490 U.S. 495 (1989) — not on the Supreme Court's list
407 U.S. 1, 15, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972), overruled on other grounds by Lines v. Chasser, 490 U.S. 495, 109 S.Ct. 1976, 104 L.Ed.2d 548 (1989);
Reported superseded by statute, as recognized in Outokumpu Engineering Enterprises, Inc. v. Kvaerner EnviroPower, Inc. — not on the Supreme Court's list
See The Bremen, 407 U.S. 1, 12 (1972), superseded by statute as stated in Outokumpu Engineering Enterprises v. KEPI, 685 A.2d 724, 733 n.6 (Del. Super.
Disagreed with by Pamela Maslowski v. Prospect Funding Partners LLC, Prospect Funding Holdings LLC, 2017 Minn. App. LEXIS 26 (2017)
407 U.S. at 17, 92 S.Ct. at 1917, we disagree with the federal court’s conclusion that the only relevant public policy is the forum’s policy regarding forum-selection clauses.
Limited by McDonnell Douglas Corp. v. Islamic Republic of Iran, 758 F.2d 341 (1985)
Moreover, we are persuaded that The Bremen and Scherk are also distinguishable because the forum clauses at issue in both cases used mandatory language unlike the preferential word “should” used in the BOA.
The opinion
Mr. Justice .White,
concurring.
I concur in the opinion and judgment of the Court except insofar as the opinion comments on the issues which are remanded to the District Court. In my view these issues are best left for consideration by the District Court in the first instance.