Carroll v. United Airlines, Inc.

739 A.2d 442, 325 N.J. Super. 353
CourtNew Jersey Superior Court Appellate Division
DecidedNovember 3, 1999
StatusPublished
Cited by16 cases

This text of 739 A.2d 442 (Carroll v. United Airlines, Inc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Carroll v. United Airlines, Inc., 739 A.2d 442, 325 N.J. Super. 353 (N.J. Ct. App. 1999).

Opinion

739 A.2d 442 (1999)
325 N.J. Super. 353

John Douglas CARROLL and Sylvia Carroll, Plaintiffs,
v.
UNITED AIRLINES, INC., a corporation doing business in the State of New Jersey, Defendant/Third-Party Plaintiff-Respondent, and
JSS, Inc., Third-Party/Defendant-Appellant.

Superior Court of New Jersey, Appellate Division.

Submitted October 12, 1999.
Decided November 3, 1999.

*444 O'Donnell, Kennedy, Vespole and Piechta, West Orange, for third-party/defendant-appellant (Mark R. Vespole, of counsel; Maureen Le Pochat, on the brief).

Shanley and Fisher, Morristown, for defendant/third-party plaintiff-respondent (Bruce L. Shapiro, of counsel; Mr. Shapiro, Gregory B. Pasquale and Dana J. Scancarella, on the brief).

Before Judges PETRELLA, CONLEY and COBURN.

*443 The opinion of the court was delivered by, CONLEY, J.A.D.

This interlocutory appeal, on leave granted by the Supreme Court, involves the denial of third-party defendant's motion to dismiss the third-party complaint for lack of subject-matter jurisdiction and in personam jurisdiction. We affirm in part and remand in part.

Simply stated, plaintiff, a paraplegic passenger on defendant/third-party-plaintiff United Airline's (United) round-trip flight from Newark, New Jersey to Japan, was injured when he fell or was dropped while being disembarked from the plane in Japan. At the time, third-party defendant JSS, a Japanese corporation, was providing wheelchair services to plaintiff pursuant to a written agreement with United. As far as the present record reveals, JSS has no direct contacts with New Jersey or any other state in the nation. Its wheelchair agreement, however, contains an indemnification clause for injuries caused by its negligence to United's passengers. That was, of course, the basis for the third-party complaint against JSS seeking indemnification.

I.

Subject-Matter Jurisdiction

Subject-matter jurisdiction involves the threshold determination as to whether the court is legally authorized to decide the question presented. Gilbert v. Gladden, 87 N.J. 275, 280-81, 432 A.2d 1351 (1981). It concerns the forum or venue in which such jurisdiction is established by statute or rule. Not infrequently, however, and often in commercial settings, a forum is voluntarily selected and agreed to by the parties. Such forum selection clauses are enforceable, provided there are no countervailing fraud, public policy, or serious inconvenience concerns. Caspi v. Microsoft Network, L.L.C., 323 N.J.Super. 118, 122, 732 A.2d 528 (App. Div.1999); McNeill v. Zoref, 297 N.J.Super. 213, 219, 687 A.2d 1052 (App.Div. 1997); Wilfred MacDonald, Inc. v. Cushman, Inc., 256 N.J.Super. 58, 63-64, 606 A.2d 407 (App.Div.), certif. denied, 130 N.J. 17, 611 A.2d 655 (1992). Compare *445 Kubis & Perszyk Assoc., Inc. v. Sun Microsystems, Inc., 146 N.J. 176, 191-92, 680 A.2d 618 (1996) ("forum-selection clauses in contracts subject to the Franchise Act... are presumptively invalid because they fundamentally conflict with the basic legislative objectives of protecting franchisees from the superior bargaining power of franchisors and providing swift and effective judicial relief against franchisors that violate the act."); Param Petroleum Corp. v. Commerce & Industry Insurance Co., 296 N.J.Super. 164, 167, 686 A.2d 377 (App.Div.1997).

Here, in its initial motion papers JSS argued that the New Jersey court lacked subject-matter jurisdiction over United's indemnification claim based upon a negotiated forum clause under which Japan was the proper forum. Here are the pertinent facts.

At the time of the accident, two separate contracts, negotiated on the same day, governed the relationship between United and JSS. One, entitled "Consigned Baggage Security Inspection Duty Commission Agreement," contained a clause that provided:

United Airlines and JSS agree that this Agreement shall be interpreted entirely according to Japanese law, and all legal actions arising from this agreement shall be under the jurisdiction of the Osaka District Court and the Osaka Summary Court.
[Emphasis added.]

By contrast, the second agreement, entitled "Memorandum" and concerning solely wheelchair services, did not specify a particular resolution of disputes arising thereunder. It is this agreement that contained the critical indemnification clause at issue here.

The only reference in this agreement to the baggage agreement is in the provision that set forth charges and terms of payment and which provided for such payment to be in accordance with the payment provisions of the baggage agreement. There is nothing in either of the documents that required them to be construed as one contract or that incorporated the forum provisions of the baggage agreement into the wheelchair agreement. And, since no discovery has occurred, there is nothing in the record that would suggest that was the parties' intent.

Where the terms of an agreement are clear, we ordinarily will not make a better contract for parties than they have voluntarily made for themselves, nor alter their contract for the benefit or detriment of either, particularly in a commercial, arms-length setting. E.g., Chemical Bank of New Jersey Nat. Ass'n v. Bailey, 296 N.J.Super. 515, 527, 687 A.2d 316 (App.Div.), certif. denied, 150 N.J. 28, 695 A.2d 671 (1997). In denying the defendant's motion to dismiss, the trial judge observed the existence of an express forum clause in the baggage agreement and commented: "[b]ut I don't know why they didn't really be more specific dealing with [forum selection], if they were so concerned, to make that apply to a personal injury." The simple fact is that, for whatever reason, the wheelchair memorandum does not contain a forum selection clause. JSS cannot rely upon the one contained in the other, separate baggage agreement.

It may be that the wheelchair memorandum does not contain a forum selection clause because United and JSS understood that services to be provided under that agreement would involve the embarkment and disembarkment of passengers. As such, claims arising therefrom would be governed by the international treaty commonly known as the Warsaw Convention (Convention).[1] For the signatory countries, the Convention establishes the exclusive remedy for damages arising from claims that fall within its substantive scope and establishes the *446 forum for such claims. El Al Israel Airlines v. Tseng, 525 U.S. 155, ___, 119 S.Ct. 662, 672-73, 142 L.Ed.2d 576, 590-93 (1999). The United States and Japan are signatory countries. Moreover, the injury to plaintiff, occurring as it did during disembarkment, falls within the substantive scope of the treaty.[2]

It is the forum clause of the Warsaw Convention, then, that United argues must be examined to determine whether the New Jersey court has subject-matter jurisdiction. In this respect, Article 28(1) of the Convention provides:

An action for damages must be brought, at the option of the plaintiff, in the territory of one of the High Contracting Parties, either before the court of the domicile of the carrier or of his principal place of business, or where he has a place of business through which the contract has been made, or

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Bluebook (online)
739 A.2d 442, 325 N.J. Super. 353, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carroll-v-united-airlines-inc-njsuperctappdiv-1999.