Haskel v. FPR Registry, Inc.

862 F. Supp. 909, 1994 U.S. Dist. LEXIS 13437, 1994 WL 518993
CourtDistrict Court, E.D. New York
DecidedSeptember 19, 1994
DocketCV-93-4719 (CPS)
StatusPublished
Cited by41 cases

This text of 862 F. Supp. 909 (Haskel v. FPR Registry, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Haskel v. FPR Registry, Inc., 862 F. Supp. 909, 1994 U.S. Dist. LEXIS 13437, 1994 WL 518993 (E.D.N.Y. 1994).

Opinion

*911 MEMORANDUM AND ORDER

SIFTON, District Judge.

In this action for breach of an employment contract, defendant, The FPR Registry, Inc. (“The Registry”), moves to dismiss for improper venue pursuant to Federal Rule of Civil Procedure 12(b)(3) on the basis of a forum selection clause in the contract. Plaintiff opposes the motion, contending that the forum selection clause should not be enforced or, in the alternative, that defendant’s motion should be considered as a motion to transfer venue rather than as a motion to dismiss and accordingly denied. Plaintiff also seeks the costs of opposing defendant’s motion. For the reasons discussed below, defendant’s motion for dismissal is denied, but the action will be transferred to the United States District Court for the District of Maryland.

BACKGROUND

Plaintiff Carol Haskel, a/k/a Carol Haskel Solomon (“Haskel”) is a resident of New York State. The Registry is a Delaware corporation with offices in Maryland and Florida. Defendant • states that it does not currently maintain an office in this state, but plaintiff disputes that assertion. Def.’s Brief at 5; PL’s Aff. in Opp. at ¶ 1.

The Registry is in the business of providing on-line computer services to landlords who seek credit and other information about prospective tenants. In 1989, defendant began efforts to solicit sales agents to sell its services to landlords in the New York area. In October 1989, plaintiff attended a recruiting meeting in New York City at which she was offered a position. Plaintiff then signed an employment contract provided by The Registry. Under the terms of the contract, plaintiff was to be paid a base salary of $21,500 per year in addition to commissions for sales made. According to plaintiff, the terms of the contract and the commission provisions were explained by llene Ingber, then a vice president of The Registry.

The subject of this action is the following provision which Haskel alleges is in her contract: “It is understood that if Haskel leaves under good terms the Registry will continue to pay his [sic] commissions on his [sic] accounts.” The Registry contends that this “continuation clause” was added by Haskel in her own copy of the employment contract and was not accepted by The Registry.

The parties agree that the contract also contained the following choice of law and forum selection clause provision:

(a) This Agreement shall be governed by the laws of the State of Maryland.
(b) Any lawsuit arising in connection with this Agreement shall be brought only in either the Ünited States District Court for the District of Maryland or the Circuit Court for Montgomery County in Maryland; except that suit ancillary to those brought in any court of competent jurisdiction.

Contract at ¶6.

Plaintiff worked for defendant for approximately four years during which time, she alleges, she fulfilled the requirements of her employment contract. According to plaintiff, on August 6,1993, she orally informed defendant that she would be resigning her position. At the request of defendant she delayed her resignation for two weeks, until August 20, 1993. In a letter confirming her resignation and the new date on which she would leave defendant’s employ, plaintiff informed defendant that she expected to receive payments for her continuing commissions under the provision quoted above. In response, defendant notified Haskel that she would be terminated a week earlier than agreed. She was also told that she would not be paid for the last week of work or for any commissions based on business generated after her departure by the accounts she had obtained for defendant. Haskel further alleges that The Registry failed to pay certain commissions due for business placed by her accounts prior to her departure.

As a result of the failure to pay commissions, Haskel commenced this action in the Supreme Court for Nassau County, New York. Her complaint asserts claims for breach of contract and for liquidated damages based on alleged violations of the New York State labor laws. The summons and complaint were served in New York upon an officer of defendant who was at a Manhattan *912 trade show soliciting customers for the defendant.

The Registry removed the action on the basis of diversity jurisdiction, 28 U.S.C. § 1332, and then made the instant motion to dismiss for improper venue on the grounds that the forum selection clause in the contract precluded suit here. Defendant contends that the forum selection clause of the contract should be enforced since The Registry is subject to service of process in Maryland and the plaintiff could have brought the suit in either the United States District Court for Maryland or in the Circuit Court for Montgomery County, Maryland. As further support for its motion, The Registry also alleges that it does not maintain an office in New York and that defendant’s witnesses and most of the records necessary for the defense of the action are located in Maryland and Florida.

Haskel has filed papers opposing the motion to dismiss, arguing that her suit involves events which took place solely in New York and that the forum selection clause is unjust and unreasonable and should not be enforced. Haskel argues in the alternative that, if the forum selection clause is deemed enforceable, defendant’s motion should be construed as a motion to transfer venue to the Federal District Court in Maryland, pursuant to 28 U.S.C. § 1404(a) and, under the standards applicable to such a motion, denied.

In response, defendant filed papers seeking Rule 11 sanctions, contending that Haskel’s refusal to acknowledge the merits of defendant’s position is unreasonable. Defendant’s papers, however, did not comply with the Federal Rules of Civil Procedure in that they did not provide sufficient notice to the plaintiff. Plaintiff and defendant therefore agreed that defendant would withdraw the motion for sanctions and that defendant’s papers would be considered merely as a reply to plaintiff’s opposition. In those papers, defendant contends that this motion cannot be considered as a motion to transfer under section 1404(a) since defendant did not request transfer under that section but merely sought dismissal of the action pursuant to Federal Rule of Civil Procedure 12(b)(3).

In a sur-reply affidavit, Haskel contends that her employment contract was merely a “contract of adhesion” since it was presented to potential employees on a “take it or leave it” basis and that the forum selection clause “on its face is an egregious form of overreaching.” Sur-reply Aff. at ¶4. Haskel also states that she and other employees worked in the New York apartments rented by defendant on a day-to-day basis over several years, making and receiving telephone calls and fax transmittals.

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Bluebook (online)
862 F. Supp. 909, 1994 U.S. Dist. LEXIS 13437, 1994 WL 518993, Counsel Stack Legal Research, https://law.counselstack.com/opinion/haskel-v-fpr-registry-inc-nyed-1994.