Caribbean Wholesales & Service Corp. v. U.S. JVC Corp.

24 F. App'x 16
Court of Appeals for the Second Circuit·Decided October 11, 2001·No. Docket No. 00-9383·Published·Cited by 1 cases

Opinion

SUMMARY ORDER

AFTER ARGUMENT AND UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED AND DECREED that the judgment of the District Court is hereby AFFIRMED.

Plaintiff-Appellant Caribbean Wholesales and Service Corporation (“Caribbean”) appeals from a final judgment of the United States District Court for the Southern District of New York (Peter K. Leisure, Judge) granting Defendant-Appellee U.S. JVC Corporation’s (“JVC”) renewed motion for summary judgment and dismissing its complaint. Familiarity with the factual background of this case and the rulings of the District Court, see Caribbean Wholesales & Serv. Corp. v. U.S. JVC Corp., 101 F.Supp.2d 236 (S.D.N.Y.2000); Caribbean Wholesales & Serv. Corp. v. U.S. JVC Corp., 963 F.Supp. 1342 (S.D.N.Y.1997), is presumed.

On appeal, Caribbean argues (1) that the District Court exceeded its discretion in denying Caribbean’s motion for retransfer of this action back to the United States District Court for the District of Puerto Rico, and (2) that the District Court committed reversible error in granting JVC’s renewed summary judgment motion. We address each contention in turn.

I. Denial of Caribbean’s Retransfer Motion

In essence, Caribbean argues that the District Court exceeded its allowable discretion in applying the law of the case doctrine to the Puerto Rican District Court’s transfer order when, in Caribbean’s view, that order was clearly erroneous [18] because it relied on the forum selection clause in the parties’ agreement even though such clause would be declared null and void under Puerto Rican law, see P.R. Laws Ann. tit. 10, § 278b-2 (“any stipulation that obligates a dealer to ... litigate any controversy that comes up regarding his dealer’s contract outside of Puerto Rico, or under foreign law or rule of law, shall be ... considered as violating ... public policy ... and is therefore null and void”).

The doctrine of forum non conveniens in a diversity case (and, thus, the enforceability of a forum-selection clause), however, is an issue of federal procedural law, not of state substantive law. See, e.g., Stewart Org. v. Ricoh Corp., 487 U.S. 22, 32, 108 S.Ct. 2239, 101 L.Ed.2d 22 (1988); Royal Bed & Spring Co. v. Famossul Industria, 906 F.2d 45, 50 (1st Cir.1990); Jones v. Weibrecht, 901 F.2d 17, 19 (2d Cir.1990) (per curiam) (“Questions of venue and the enforcement of forum selection clauses are essentially procedural, rather than substantive, in nature.”). Therefore, under Erie R. Co. v. Tompkins, 304 U.S. 64, 58 S.Ct. 817, 82 L.Ed. 1188 (1938), and its progeny, federal law, and not Puerto Rican law, controls the enforceability of a forum selection clause, and the weight, if any, to which it is entitled. The Supreme Court has clearly held that such clauses are enforceable and may be dispositive unless some compelling and countervailing reason regarding the agreement, such as fraud, undue influence or overwhelming bargaining power, or factor in the balancing the district court must undertake under 28 U.S.C. § 1404(a) is presented. Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 12, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972), as limited by Stewart Org., 487 U.S. at 29 (“[A] forum selection clause [is] ... a significant factor that figures centrally” in a district court’s determination of whether to transfer or retransfer a case). We find that the District Court did not exceed its allowable discretion in denying Caribbean’s motion to retransfer the case in light of the parties’ express preference for New York as a forum and Caribbean’s failure to overcome the presumption in favor of enforcing the forum selection clause.

II. Grant of Renewed Summary Judgment Motion

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Caribbean Wholesales & Service Corp. v. U.S. JVC Corp., 24 F. App'x 16 (2d Cir. 2001).

24 F. App'x 16 (Caribbean Wholesales & Service Corp. v. U.S. JVC Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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