Crane Construction Co. v. JKC Construction, Inc.

793 F. Supp. 2d 1104, 2010 U.S. Dist. LEXIS 143460, 2010 WL 6815823
CourtDistrict Court, W.D. Missouri
DecidedNovember 22, 2010
Docket10-6103-CV-SJ-DW
StatusPublished
Cited by1 cases

This text of 793 F. Supp. 2d 1104 (Crane Construction Co. v. JKC Construction, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crane Construction Co. v. JKC Construction, Inc., 793 F. Supp. 2d 1104, 2010 U.S. Dist. LEXIS 143460, 2010 WL 6815823 (W.D. Mo. 2010).

Opinion

ORDER

DEAN WHIPPLE, District Judge.

Before the Court is Plaintiff Crane Construction Co.’s Motion to Remand (Doc. 8) and Brief in Support (Doc. 9). For the reasons stated herein, Plaintiffs motion is GRANTED.

Plaintiff initially filed its Petition for Breach of Contract and Declaratory Judgment in the Circuit Court of Andrew County, Missouri, against Defendant JKC Construction, Inc. In its petition, Plaintiff states that it entered into two subcontract agreements with Defendant to perform renovations at separate Kohl’s department stores. Plaintiff alleges that Defendant has breached the subcontract agreements by failing to comply with the contract requirements. Defendant has counterclaimed that it has complied with the requirements and Plaintiff is in material breach of the contracts by withholding payment. Defendant timely removed the action pursuant to 28 U.S.C. §§ 1332, 1441 and 1446 based upon diversity jurisdiction. Plaintiff then filed this motion to remand.

As the basis for its motion to remand, Plaintiff claims that the contracts entered into between the parties contain valid forum selection clauses, which state that the only court to have jurisdiction over a disagreement under these contracts is the Circuit Court of Andrew County, Missouri. Defendant argues that the forum selection clauses do not prohibit removal to federal court on two grounds. First, Defendant argues that the clauses are invalid because the parties did not discuss or bargain for them. Second, Defendant argues that the clauses do not preclude removal because they do not contain a sufficiently clear waiver of Defendant’s removal rights as required by law.

First, the Court finds that the forum selection provision is not invalid because it appears in “boilerplate language” which the parties never specifically discussed or bargained for. A party challenging a forum selection clause bears a heavy burden in proving that it should not be held to its bargain because courts give considerable deference to the plaintiffs choice of forum. Pub. Sch. Ret. Sys. of Mo. v. State St. Bank & Trust Co., No. 09-4214, 2010 WL 318538, at *2 (W.D.Mo. Jan. 21, 2010); Midwest Mech. Contractors, Inc. v. Tampa Constructors, Inc., 659 F.Supp. 526, 530 (W.D.Mo.1987). “Forum selection clauses are prima facie valid and are enforced unless they are unjust or unreasonable or invalid.” Pub. Sch. Ret. Sys. of Mo., 2010 WL 318538, at *2 (quoting Servewell Plumbing, LLC v. Fed. Ins. Co., 439 F.3d 786, 789 (8th Cir.2006)). This Court has held that the use of preprinted contract forms alone does not render a forum selection clause fraudulent or oppressive such that it is invalid. Midwest Mech. Contractors, Inc., 659 F.Supp. at 531. Similarly, the Court has held that *1106 failure of the parties to carefully read the contents of a subcontract before signing it does not void the forum selection clause. Id. (rejecting the defendant’s argument that the forum selection clause was invalid because the defendant “did not bargain for or otherwise take notice of the [forum selection provision]” of the contract).

Here, Defendant’s argument that enforcement of the forum selection clauses is invalid because the parties did not specifically bargain for the clauses has no merit. These parties are sophisticated business entities and Defendant has offered no indication that they did not possess equal bargaining power when entering into their contracts. The mere use of boilerplate language does not give Defendant the right to void these provisions of the contracts. This is especially true in light of the fact that the parties entered into two separate contracts with identical forum selection clauses, once in 2009 and again in 2010. Defendant was thus on notice of the forum selection clause and therefore had an opportunity to either contest it or decline to enter into an additional contract with Plaintiff under its terms. Defendant did neither and cannot now argue that the provision is invalid because it failed to contract for a different provision. Defendant has not satisfied its heavy burden to prove to the Court that it should not be held to its bargain, and therefore the forum selection clause is valid.

Next the Court finds that removal is precluded based on the language of the forum selection clause. The clause at issue reads:

Should either [party] institute any suit, action or legal proceeding involving and/or against the other party ...; jurisdiction and venue of such suit, action or legal proceeding shall be solely, only and exclusively in a court located in Andrew County, Missouri and no other .... The parties hereby consent to the in personam jurisdiction of a court located in Andrew County, Missouri.... Any reference to any other venue or jurisdiction in the Prime Contract between the Owner and Contractor or otherwise shall be unenforceable and non-binding upon Contractor, it being the specific intent to resolve all matters, disputes, claims, demands, or legal action in a court located in Andrew County, Missouri, and no other. Subcontractor further agrees to include similar forum selection language in all agreements, sub-subcontracts or purchase orders which Subcontractor may enter in connection with the performance of its Work under this Subcontract,

(emphasis added). “A forum selection clause can act as a waiver of a defendant’s right to remove an action to federal court, but such a waiver must be ‘clear and unequivocal.’ ” Xgel Tech., LLC v. C.I. Kasei Co., Ltd., No. 09-540, 2009 WL 1576837, at *1 (E.D.Mo. June 3, 2009) (citations omitted); see also Weltman v. Silna, 879 F.2d 425, 427 (8th Cir.1989). The parties’ mere agreement that venue is proper in a particular court or jurisdiction is not a clear and unequivocal waiver of removal rights. Mihlfeld & Assoc., Inc. v. Glock, Inc., No. 05-3085, 2005 WL 1009579, at *2 (W.D.Mo. Apr. 27, 2005). However, language that indicates a waiver of the right to object to venue constitutes a waiver of removal rights. Id. Whether a clear and unequivocal waiver of removal rights exists depends on the language of the specific clause at issue.

In iNet Directories, LLC v. Developershed, Inc., the Eighth Circuit Court of Appeals found the following language to contain a clear and unequivocal waiver of removal rights:

The parties hereby irrevocably waive any and all objections which any Party may now or hereafter have to the exer *1107 cise of personal and subject matter jurisdiction by the federal or state courts in the State of Missouri and to the laying of venue to any such suit, action or proceeding brought in any such federal or state court in the State of Missouri.

394 F.3d 1081

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Bluebook (online)
793 F. Supp. 2d 1104, 2010 U.S. Dist. LEXIS 143460, 2010 WL 6815823, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crane-construction-co-v-jkc-construction-inc-mowd-2010.