Lambert v. Kysar
This text of Lambert v. Kysar (Lambert v. Kysar) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Bluebook
Lambert v. Kysar, (1st Cir. 1993).
Opinion
USCA1 Opinion
March 12, 1993 UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
No. 91-2244
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
Plaintiff, Appellant,
v.
SAM KYSAR AND JOAN KYSAR,
d/b/a LEWIS RIVER TREE FARM,
Defendants, Appellees.
_____________________
No. 92-1029
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
Plaintiff, Appellant,
v.
SAM KYSAR AND JOAN KYSAR,
d/b/a LEWIS RIVER TREE FARM,
Defendants, Appellees.
_____________________
ERRATA SHEET
The opinion of this Court issued on January 13, 1993, is
amended as follows:
Cover sheet: Spelling of last name of appellant's counsel
should be "Gillis";
Page 9, line 7: change "1988" to "1989";
Page 14, line 4: change "1988" to "1989." January 13, 1993
January 13, 1993 UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
____________________
____________________
No. 91-2244
No. 91-2244
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
Plaintiff, Appellant,
Plaintiff, Appellant,
v.
v.
SAM KYSAR AND JOAN KYSAR,
SAM KYSAR AND JOAN KYSAR,
d/b/a LEWIS RIVER TREE FARM,
d/b/a LEWIS RIVER TREE FARM,
Defendants, Appellees.
Defendants, Appellees.
_____________________
_____________________
No. 92-1029
No. 92-1029
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
Plaintiff, Appellant,
Plaintiff, Appellant,
v.
v.
SAM KYSAR AND JOAN KYSAR,
SAM KYSAR AND JOAN KYSAR,
d/b/a LEWIS RIVER TREE FARM,
d/b/a LEWIS RIVER TREE FARM,
Defendants, Appellees.
Defendants, Appellees.
_____________________
_____________________
APPEALS FROM THE UNITED STATES DISTRICT COURT
APPEALS FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MASSACHUSETTS
FOR THE DISTRICT OF MASSACHUSETTS
[Hon. Edward F. Harrington, U.S. District Judge]
[Hon. Edward F. Harrington, U.S. District Judge]
___________________
____________________
____________________
Before
Before
Cyr, Circuit Judge,
Cyr, Circuit Judge,
_____________
Campbell, Senior Circuit Judge,
Campbell, Senior Circuit Judge,
____________________
and Fust ,* District Judge.
and Fust ,* District Judge.
______________
____________________
____________________
Brian A. Gillis with whom Parker, Coulter, Daley & White was on
Brian A. Gillis with whom Parker, Coulter, Daley & White was on
_______________ _______________________________
brief for appellant.
brief for appellant.
James A. G. Hamilton with whom Perkins, Smith & Cohen was on
James A. G. Hamilton with whom Perkins, Smith & Cohen was on
_____________________ _______________________
brief for appellees.
brief for appellees.
____________________
____________________
____________________
____________________
*Of the District of Puerto Rico, sitting by designation.
*Of the District of Puerto Rico, sitting by designation.
CYR, Circuit Judge. George Lambert appeals a district court
CYR, Circuit Judge.
_____________
order dismissing his lawsuit for improper venue. We affirm.
I
I
BACKGROUND
BACKGROUND
__________
Appellant Lambert owns and operates the Rainbow Fruit
Company in Boston, Massachusetts, which sells Christmas trees and
wreaths at retail during the holiday season. Appellees Sam and Joan
Kysar operate a Christmas tree farm in Woodland, Washington. From
1987 through 1989, Lambert purchased Christmas trees at wholesale from
the Kysars pursuant to a written form contract signed by both parties.
The front of the order form contained spaces in which the size, grade,
quantity, and price of each Christmas tree order could be filled in;
a small space at the bottom of the page, denominated "other", was used
by the parties to note additional terms and conditions. The back of
the order form stated the fixed terms of the contract and provided,
inter alia, that
_____ ____
"[t]he terms and conditions of the order documents
applicable to this transaction shall be interpret-
ed under the case and statutory law of the State
of Washington. In the event any action is brought
to enforce such terms and conditions, venue shall
lie exclusively in Clark County, Washington."
In July 1989, the Kysars visited Boston to discuss Lambert's
needs for the upcoming Christmas season. On their return to Washing-
ton, they sent Lambert an order form, filled out and signed by Joan
3
Kysar. The numbers handwritten on the form by Joan Kysar provided for
an order of 2600 Christmas trees at $11.60 apiece. At the bottom of
Free access — add to your briefcase to read the full text and ask questions with AI
USCA1 Opinion
March 12, 1993 UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
No. 91-2244
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
Plaintiff, Appellant,
v.
SAM KYSAR AND JOAN KYSAR,
d/b/a LEWIS RIVER TREE FARM,
Defendants, Appellees.
_____________________
No. 92-1029
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
Plaintiff, Appellant,
v.
SAM KYSAR AND JOAN KYSAR,
d/b/a LEWIS RIVER TREE FARM,
Defendants, Appellees.
_____________________
ERRATA SHEET
The opinion of this Court issued on January 13, 1993, is
amended as follows:
Cover sheet: Spelling of last name of appellant's counsel
should be "Gillis";
Page 9, line 7: change "1988" to "1989";
Page 14, line 4: change "1988" to "1989." January 13, 1993
January 13, 1993 UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
____________________
____________________
No. 91-2244
No. 91-2244
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
Plaintiff, Appellant,
Plaintiff, Appellant,
v.
v.
SAM KYSAR AND JOAN KYSAR,
SAM KYSAR AND JOAN KYSAR,
d/b/a LEWIS RIVER TREE FARM,
d/b/a LEWIS RIVER TREE FARM,
Defendants, Appellees.
Defendants, Appellees.
_____________________
_____________________
No. 92-1029
No. 92-1029
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
GEORGE LAMBERT, d/b/a RAINBOW FRUIT,
Plaintiff, Appellant,
Plaintiff, Appellant,
v.
v.
SAM KYSAR AND JOAN KYSAR,
SAM KYSAR AND JOAN KYSAR,
d/b/a LEWIS RIVER TREE FARM,
d/b/a LEWIS RIVER TREE FARM,
Defendants, Appellees.
Defendants, Appellees.
_____________________
_____________________
APPEALS FROM THE UNITED STATES DISTRICT COURT
APPEALS FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MASSACHUSETTS
FOR THE DISTRICT OF MASSACHUSETTS
[Hon. Edward F. Harrington, U.S. District Judge]
[Hon. Edward F. Harrington, U.S. District Judge]
___________________
____________________
____________________
Before
Before
Cyr, Circuit Judge,
Cyr, Circuit Judge,
_____________
Campbell, Senior Circuit Judge,
Campbell, Senior Circuit Judge,
____________________
and Fust ,* District Judge.
and Fust ,* District Judge.
______________
____________________
____________________
Brian A. Gillis with whom Parker, Coulter, Daley & White was on
Brian A. Gillis with whom Parker, Coulter, Daley & White was on
_______________ _______________________________
brief for appellant.
brief for appellant.
James A. G. Hamilton with whom Perkins, Smith & Cohen was on
James A. G. Hamilton with whom Perkins, Smith & Cohen was on
_____________________ _______________________
brief for appellees.
brief for appellees.
____________________
____________________
____________________
____________________
*Of the District of Puerto Rico, sitting by designation.
*Of the District of Puerto Rico, sitting by designation.
CYR, Circuit Judge. George Lambert appeals a district court
CYR, Circuit Judge.
_____________
order dismissing his lawsuit for improper venue. We affirm.
I
I
BACKGROUND
BACKGROUND
__________
Appellant Lambert owns and operates the Rainbow Fruit
Company in Boston, Massachusetts, which sells Christmas trees and
wreaths at retail during the holiday season. Appellees Sam and Joan
Kysar operate a Christmas tree farm in Woodland, Washington. From
1987 through 1989, Lambert purchased Christmas trees at wholesale from
the Kysars pursuant to a written form contract signed by both parties.
The front of the order form contained spaces in which the size, grade,
quantity, and price of each Christmas tree order could be filled in;
a small space at the bottom of the page, denominated "other", was used
by the parties to note additional terms and conditions. The back of
the order form stated the fixed terms of the contract and provided,
inter alia, that
_____ ____
"[t]he terms and conditions of the order documents
applicable to this transaction shall be interpret-
ed under the case and statutory law of the State
of Washington. In the event any action is brought
to enforce such terms and conditions, venue shall
lie exclusively in Clark County, Washington."
In July 1989, the Kysars visited Boston to discuss Lambert's
needs for the upcoming Christmas season. On their return to Washing-
ton, they sent Lambert an order form, filled out and signed by Joan
3
Kysar. The numbers handwritten on the form by Joan Kysar provided for
an order of 2600 Christmas trees at $11.60 apiece. At the bottom of
the form, in the space marked "other", Kysar wrote that the order was
"[b]ased on 4 loads of 650 trees each. All trucks will be loaded to
capacity. 25% deposit . . . balance due on or before 12/10/89."
Lambert received the order form in late July, but apparently
thought that it overstated the quantity of trees needed for the next
season. Writing on the same order form submitted by the Kysars, he
changed the notation "4 loads of 650 trees each," to read "3 loads of
550 trees", and changed the total number ordered from "2600" to
"1650." Lambert also recomputed the total amount due and the amount
of the required 25% deposit. He inserted the new figures over Joan
Kysar's handwritten figures at the bottom of the form, and returned
the form to the Kysars. He made no change to the $11.60 unit price or
to any other contract provision.
On August 21, 1989, in a letter to Sam and Jean Kysar,
Lambert enclosed a $4785 check "for payment of the deposit on our tree
order", and stated his understanding "that shipping will be the same
as last year. There will be three loads of 1,650 trees at $11.60 for
a total cost of $19,140." The record on appeal does not indicate
whether the Kysars received Lambert's letter, cashed his deposit
check, or issued any written response, but on November 20, 25 and 29,
in accordance with the instructions on the altered order form, the
Kysars sent Lambert the requested 1,650 trees, in three loads, by
overland truck. Following delivery of the trees on November 25, 29,
4
and December 1, Lambert's inspection allegedly revealed that the trees
"were dry, not fresh, and appeared old." Citing the allegedly defec-
tive condition of the trees, Lambert refused to pay the balance
claimed by the Kysars.
In June, 1991, the Kysars filed suit in Clark County,
Washington, to recover the balance claimed due. In September, 1991,
Lambert filed the present countersuit against the Kysars in Massa-
chusetts Superior Court, alleging misrepresentation, breach of con-
tract, breach of implied warranty, and unfair business practices under
Mass. Gen. L. ch. 93A. The Kysars removed Lambert's suit to federal
district court and moved to dismiss under Federal Rules 12(b)(3) and
12(b)(6), alleging improper venue and failure to state a claim on
which relief could be granted.1
On November 18, 1991, the motion to dismiss was granted
without hearing, by margin order: "[The defendants'] motion to
dismiss is allowed. According to the terms of contract[,] suit must
be filed in State Court in Washington." We review the district court
dismissal order de novo. See Edwards v. John Hancock Mut. Life Ins.
__ ____ ___ _______ ____________________________
Co., 973 F.2d 1027, 1028 (1st Cir. 1992); see also Instrumentation
___ ___ ____ _______________
Assocs., Inc. v. Madsen Electronics (Canada) Ltd., 859 F.2d 4, 5 (3d
_____________ ________________________________
____________________
1The Kysars invoked Rule 12(b)(3) as the procedural vehicle for urging
dismissal under the forum selection clause in the order form. We have
held that such dismissals are founded on Rule 12(b)(6), see LFC
___ ___
Lessors, Inc. v. Pacific Sewer Maintenance Corp., 739 F.2d 4, 7 (1st
_____________ _______________________________
Cir. 1984). No matter, however, since "we are not bound by the label
employed below, and we agree that the case should have been dis-
missed." See id. (quoting Carr v. Learner, 547 F.2d 135, 137 (1st
___ ___ ____ _______
Cir. 1976)).
5
Cir. 1988) (de novo review of forum selection clause dismissal under
__ ____
Rule 12(b)(6)); compare, e.g., Pelleport Investors, Inc. v. Budco
_______ ____ __________________________ _____
Quality Theatres, 741 F.2d 273, 280 n.4 (9th Cir. 1984) ("abuse of
________________
discretion" review of forum selection clause dismissal under Rule
12(b)(3)).
II
II
DISCUSSION
DISCUSSION
__________
The order form filled out by Joan Kysar, and amended by
Lambert in July 1989, provided, inter alia, that "[i]n the event any
_____ ____
action is brought to enforce [the] terms and conditions [of the order
documents], venue shall lie exclusively in Clark County, Washington."
The Kysars assert, and the district court impliedly found, that the
order form expressed the terms and conditions of the agreement between
the parties and that Lambert is bound by the choice of forum made in
the order form. Lambert vigorously disagrees. According to Lambert,
the changes he made to the quantity term on the Kysars' order form
amounted to a material alteration (and therefore a rejection) of the
Kysar offer, paving the way for a counteroffer in the form of Lam-
bert's August 21 letter. Since the August 21 letter contained neither
a forum selection clause nor an express choice-of-law provision,
Lambert asserts that venue and choice-of-law rules are to be deter-
mined under general common-law and statutory principles. In particu-
lar, Lambert asserts, the Massachusetts venue remains proper under the
6
general rules applicable to removed cases in federal courts, i.e., 28
____
U.S.C. 1441.2
We agree with the first part of Lambert's argument. The
changes Lambert made to the quantity term amounted to a rejection
____________________
2Lambert's opposition to the Kysars' motion to dismiss also seems to
assert: (1) that the Kysars waived their right to plead improper
venue by filing the removal petition, thereby implicitly acknowledging
the district court's authority to hear the case; and (2) that even if
the removal petition did not constitute a per se waiver of their right
___ __
to plead improper venue, in the present case waiver can be implied
from the representation made in the removal petition that "[v]enue in
[Massachusetts federal] Court [was] proper under 28 U.S.C. 1391."
Neither assertion is sound. Although it is axiomatic that a defendant
must mount any challenge to venue at the earliest possible opportuni-
ty, see Graver Tank & Mfg. Corp. v. New England Terminal Co., 125 F.2d
___ ________________________ ________________________
71, 74 (1st Cir. 1942), the Kysars properly preserved their right to
challenge venue by raising it in the state court action and renewing
it in their first pleading following removal. It is well settled that
the filing of a removal petition in a diversity action, without more,
does not waive the right to object in federal court to the state court
venue. In order to obtain the benefits of a federal forum in diversi-
ty cases, "[the] removal must be 'into the district where such suit is
____ __
pending'[; n]o choice is possible and for that reason nothing in
respect to venue can be waived." Moss v. Atlantic Coast Line R. Co.,
____ __________________________
157 F.2d 1005 (2d Cir. 1946), cert. denied, 330 U.S. 839 (1947)
____ ______
(emphasis added).
This analysis is not altered by the Kysars' assertion, in their
removal petition, that venue in Massachusetts federal district court
was proper under 28 U.S.C. 1391. Even if their assertion could be
construed as a waiver of any objection to venue under 28 U.S.C.
1391, the venue of a removed action is not governed by 1391, but by
28 U.S.C. 1441(a). Indeed, removal of an action to a proper forum
under 1441(a) frequently has been considered a waiver or cure of any
defect in the original venue of the removed action under 28 U.S.C.
1391. See Polizzi v. Cowles Magazines, Inc., 345 U.S. 663, 665
___ _______ ________________________
(1953); Seaboard Rice Milling Co. v. Chicago, R.I. & P.R. Co., 270
__________________________ __________________________
U.S. 363 (1926); Minnesota Mining & Mfg. Co. v. Kirkevold, 87 F.R.D.
____________________________ _________
317, 321-22 (D. Minn. 1980); Tanglewood Mall, Inc. v. Chase Manhattan
_____________________ _______________
Bank, 371 F. Supp. 722, 725 (W.D. Va.), aff'd, 508 F.2d 838 (4th Cir.
____ _____
1974), cert. denied, 421 U.S. 965 (1975). Here, of course, a differ-
____ ______
ent issue is presented, since a valid forum selection clause operates
to render the venue improper, not only under 1391, but also under
___ ____ ___ ____
1441(a).
7
under Article 2 of the Uniform Commercial Code, and the Kysars'
performance of the new contract amounted to an acceptance of the new
terms proposed by Lambert. We disagree with the second part of
Lambert's argument, however. Lambert's counteroffer was made in July,
when he amended the order form containing the Kysars' original offer,
not in Lambert's August 21 letter. Accordingly, the counteroffer
___
incorporated the unamended terms and conditions contained in the
original offer, including its venue and choice-of-law clauses. Since
the venue clause impliedly mandating a Washington forum is
enforceable under both state and federal common law, the district
court properly dismissed the action.
A. The Contract
A. The Contract
____________
The parties disagree on whether a Massachusetts court would
apply Massachusetts or Washington law to the formation of their
contract. See Klaxon v. Stentor Elec. Mfg. Co., 313 U.S. 487 (1941)
___ ______ _______________________
(federal court sitting in diversity must apply forum state's choice-
of-law rules). We need not resolve the issue, however, as the outcome
is the same under the substantive law of either jurisdiction. See
___
Cohen v. McDonnell Douglas Corp., 389 Mass. 327, 332, 450 N.E.2d 581,
_____ _______________________
584 (1983) ("the usual first step in applying conflict of laws prin-
ciples is to determine whether there is a conflict among the laws of
the various states involved").
Christmas trees are "goods" within the meaning of Uniform
Commercial Code, Article II, as adopted in both Massachusetts and
8
Washington.3 Moreover, the common law of both jurisdictions, which
remains in force under the U.C.C. except as displaced, see U.C.C. 1-
___
103, Mass. Gen. L. ch. 106 1-103, Wash. Rev. Code 62A.2-103, sup-
ports the validity and enforceability of the subject contract, includ-
ing its forum selection clause.
Under the law of both Massachusetts and Washington, the
order form (signed and forwarded to Lambert in July 1989) comprised an
offer to contract in accordance with its terms.4 It set forth in
detail all the material terms essential to the proposed transaction,
including the price, quantity and quality of the goods. It provided a
____________________
3Christmas trees have been described as "growing crops or other things
attached to realty and capable of severance without material harm
thereto," U.C.C. 2-107, Mass. Gen. L. ch. 106 2-107(2) (1979);
Wash. Rev. Code 62A.2-107(2). See Groth v. Stillson, 174 N.W.2d 596,
___ _____ ________
598 (Mich. App. 1969); cf. Rainier Nat'l Bank v. Security State Bank,
___ __________________ ___________________
59 Wash. App. 161, 796 P.2d 443 (1990), rev. denied, 117 Wash. 2d
____ ______
1004, 815 P.2d 166 (1991) (Christmas trees are "growing crops" for
purposes of Article 9). Alternatively, though somewhat less plausi-
bly, the parties' July arrangement for delivery of Christmas trees
might be viewed as a contract for sale of "timber to be cut." U.C.C.
2-107, Mass. Gen. L. ch. 106, 2-107(2) (1979); Wash. Rev. Code
62A.2-107(2). In either event, a sale of Christmas trees is a "trans-
action in goods" governed by the Uniform Commercial Code. See U.C.C.
___
2-105, Mass. Gen. L. ch. 106 2-105(1); Wash. Rev. Code 62A.2-105;
see also Traynor v. Walters, 342 F.Supp. 455, 459 (M.D. Pa. 1972);
___ ____ _______ _______
Kirk Co. v. Ashcraft, 684 P.2d 1127 (N.M. 1984); Whewell v. Dobson,
_________ ________ _______ ______
227 N.W.2d 115, 117 (Iowa 1975).
4As the evidentiary foundation for determining the formation of the
parties' contract was either undisputed or consisted of writings,
Lambert's present challenge raises issues of law for the court.
Ismert & Associates, Inc. v. New England Mut. Life Ins. Co., 801 F.2d
_________________________ _______________________________
536 (1st Cir. 1986) (citing David J. Tierney, Jr., Inc. v. T. Welling-
___________________________ ___________
ton Carpets, Inc., 8 Mass. App. Ct. 237, 239, 392 N.E.2d 1066, 1068
__________________
(1979)); Bresky v. Rosenberg, 256 Mass. 66, 75, 152 N.E. 347, 351
______ _________
(1926); R.J. Menz Lumber Co. v. E.J. McNeeley & Co., 58 Wash. 223,
_____________________ ____________________
229, 108 P. 621, 624 (1910). Lambert adverts to no other evidence
which would alter the result reached here.
9
space for Lambert's signature, to indicate that he had "read and
accept[ed] the Terms of Sale on the reverse side of th[e] document."
It included the signature of Joan Kysar, an officer of Lewis River
Tree Farm, indicating assent to be bound. See Restatement (Second) of
___
Contracts 24 (offer is "manifestation of willingness to enter into a
bargain, so made as to justify another person in understanding that
his assent to that bargain is invited and will conclude it"); Gilbert
_______
& Bennett Mfg. Co. v. Westinghouse Elec. Corp., 445 F. Supp. 537, 544
___________________ ________________________
(D. Mass. 1977) ("an offer is made when the offeror leads the offeree
to reasonably believe that an offer has been made"). Although the
back of the form included a provision for "approval" by the Lewis
River Tree Farm's "main office", Joan Kysar's status as an officer of
the company and her signature on the front of the form reasonably
denoted such approval. Compare Kuzmeskus v. Pickup Motor Co., 330
_______ _________ _________________
Mass. 490, 493, 115 N.E.2d 461, 464 (1953) (contract proffered by
company's general manager, which contained clause requiring authoriza-
tion by seller's corporate officer, and blank space for officer's
_____ _____
signature, held to be "no more than an invitation or request to give
orders on the terms and conditions therein stated"; "[i]f the general
manager was an officer of the company with power to authorize the
sales, he said or did nothing to inform the plaintiff that he was
taking favorable action").
Under the law of both Washington and Massachusetts, Lam-
bert's substitution of a substantially lower quantity term amounted to
a rejection of the Kysars' offer to sell, and a counteroffer to
10
purchase the lesser quantity of trees.5 See Minneapolis & St. L.R.
___ _______________________
v. Columbus Rolling-Mill Co., 119 U.S. 149 (1886) (order for 1200 tons
_________________________
of steel rails indicated rejection of offer to sell 2000-5000 tons of
rails); see generally Restatement (Second) of Contracts 59 ("a
___ _________
reply to an offer which purports to accept it but is conditional on
the offeror's assent to terms additional to or different from those
offered is not an acceptance but is a counteroffer"); Banks v. Cres-
_____ _____
cent Lumber & Shingle Co., 61 Wash.2d 528, 530-31, 379 P.2d 203
____________________________
(1963); Owens-Corning Fiberglas Corp. v. Fox Smith Sheet Metal Co., 56
_____________________________ _________________________
Wash.2d 167, 170, 351 P.2d 516, 518 (1960); Champlin v. Jackson, 317
________ _______
Mass. 461, 463-64, 58 N.E.2d 757 (1945); Kehlor Flour Mills v. Linden,
__________________ ______
230 Mass. 119, 123, 119 N.E. 698 (1918). Lambert's counteroffer to
purchase, made on the same form as the Kysars' offer to sell, and
containing Lambert's signature indicating that he had "read and
accept[ed] the Terms of Sale on the reverse side," incorporated all
the unamended terms in the original offer form; that is, all its terms
except the quantity of trees.6 See Construction Aggregates Corp. v.
___ ______________________________
Hewitt-Robins Inc., 404 F.2d 505 (7th Cir. 1968), cert. denied, 395
___________________ ____ ______
____________________
5Our analysis makes it unnecessary to address Lambert's argument that
the same result might be reached by crediting the printed condition on
the reverse side of the order form: "No modifications of the terms of
this agreement shall be effective unless reduced to writing and
executed in writing by both parties hereto."
6Lambert's August 21, 1989 letter of confirmation ratified and
reconfirmed the terms of his counteroffer. The letter referred to
"our tree order" and enclosed a deposit for the quantity of trees
Lambert ordered. Nowhere did it indicate that the counteroffer was
being revoked or made conditional on an assent to any additional term.
11
U.S. 921 (1969) (seller's stated objection to one term of counteroffer
may be treated as acquiescence in remaining terms); cf. Romala Corp.
___ ____________
v. United States, 927 F.2d 1219, 1221 (Fed. Cir. 1991) (seller's
______________
submission of purchaser's bid form, altering some paragraphs but not
others, amounted to acquiescence in unaltered terms).
Since Lambert's alteration of the quantity term amounted to
a rejection of the original offer, rather than a mere modification or
_________ ____________
supplementation of the boilerplate language in the original offer
_______________
form, this is not an appropriate case for the application of U.C.C.
2-207(2), Mass. Gen. L. ch. 106 2-207(2), Wash. Rev. Code 62A.2-
207(2). See, e.g., Duval & Co. v. Malcom, 233 Ga. 784, 787, 214
___ ____ ____________ ______
S.E.2d 356, 358 (1975) (holding 2-207 inapplicable where offer and
purported acceptance differed on quantity of goods to be sold); see
___
generally James J. White & Robert S. Summers, Uniform Commercial Code,
_________ _______________________
1-3, p. 33 (3d ed. 1980) [hereinafter: White & Summers] (suggesting
_______________
inapplicability of U.C.C. 2-207 in cases of substantial divergence,
e.g., where forms "diverge as to price, quality, quantity, or delivery
____ ________
terms") (emphasis added). Since U.C.C. 2-207 is inapplicable to the
facts of this case, we need not consider the apparent conflict between
our interpretation of 2-207 in Roto-Lith, Ltd. v. F.P. Bartlett &
_______________ _______________
Co., 297 F.2d 497 (1st Cir. 1962), and the interpretation adopted by
___
the courts of Washington and other jurisdictions.7
____________________
7Roto-Lith holds, as a matter of Massachusetts law, that a purported
_________
acceptance "which states a condition materially altering the obliga-
tion solely to the disadvantage of the offeror" operates as a counter-
offer expressly conditioned on the offeror's assent to the additional
12
Whether the Kysars accepted Lambert's counteroffer in
August, by accepting his deposit check, see Rockwood Mfg. Corp. v.
___ ____________________
AMP, Inc., 806 F.2d 142, 144-145 (7th Cir. 1986) ("the act of cashing
_________
a check can function as an acceptance of an offer in certain circum-
stances") (collecting cases); cf. Hobbs v. Massasoit Whip Co., 158
___ _____ ___________________
Mass. 194, 197, 33 N.E. 495, 495 (1893) ("conduct which imports
acceptance or assent is acceptance or assent in the view of the law"),
or by seasonably shipping the number of Christmas trees requested in
Lambert's counteroffer, see U.C.C. 2-206(1) ("an offer to make a
___
contract shall be construed as inviting acceptance in any manner and
by any medium reasonable under the circumstances"); see also U.C.C.
___ ____
2-206(2) ("an offer to buy goods for prompt or current shipment
shall be construed as inviting acceptance . . . by the prompt or
____________________
term. 297 F.2d at 500; see also Teradyne, Inc. v. Mostek Corp., 797
___ ____ ______________ ____________
F.2d 43, 55 (1st Cir. 1986) (citing Roto-Lith); Gilbert & Bennett
_________ __________________
Mfg., 445 F. Supp. at 546 (same). The Roto-Lith rule has never been
____ _________
repudiated by the Massachusetts Supreme Judicial Court ("SJC"), though
it has been received critically by commentators, see, e.g., White &
___ ____ _______
Summers at 33, and its precedential value has been questioned. See
_______ ___
Polyclad Laminates, Inc. v. Vits Maschinenbau GmBH, 749 F. Supp. 342,
_________________________ ______________________
344 (D. N.H. 1990); St. Charles Cable TV, Inc. v. Eagle Comtronics,
___________________________ _________________
Inc., 687 F. Supp. 820, 828 n.19 (S.D.N.Y. 1988).
____
The Washington Supreme Court appears not to have ruled on the
issue, but in Hartwig Farms, Inc. v. Pacific Gamble Robinson Co., 28
___________________ ___________________________
Wash. App. 539, 543-44, 625 P.2d 171, 174 (1981), the Washington Court
of Appeals expressly declined to follow Roto-Lith, holding that the
_________
addition of a material term in the buyer's acceptance did not amount
to a rejection. Rather, the terms on which parties do not expressly
agree "dropped out" of the contract and were replaced (where possible)
by the U.C.C.'s "gap-filler" provisions. See, e.g., U.C.C. 2-306(1),
___ ____
Wash. Rev. Code 62A.2-306(1) (implying quantity term in output and
requirements contracts; measuring quantity in these cases by "such
actual output or requirements as may occur in good faith"). See
___
generally White & Summers, at 38-40 (3d ed. 1988) (collecting cases,
_________ _______________
and discussing proper interpretation of UCC 2-207).
13
current shipment of conforming or non-conforming goods"), under the
law of both Washington and Massachusetts the Kysars accepted Lambert's
counteroffer by November 1989 at the latest. The Kysars' acceptance,
whenever it is deemed to have occurred, operated under the law of both
jurisdictions to bind the contracting parties to all terms printed on
the reverse side of the original order form, including the forum
selection clause.8
B. The Forum Selection Clause
B. The Forum Selection Clause
__________________________
We turn to the forum selection clause. Federal courts have
long enforced forum selection clauses as a matter of federal common
law. See The Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 10 (1972)
___ __________ _____________________
(forum clauses "are prima facie valid and should be enforced unless
enforcement is shown by the resisting party to be 'unreasonable' under
the circumstances"); Docksider, Ltd. v. Sea Technology, Ltd., 875 F.2d
_______________ ____________________
762, 764 (9th Cir. 1989) ("The prevailing rule is clear... that where
venue is specified with mandatory language the clause will be en-
forced"). Washington state law on the validity and enforcement of
forum selection clauses is drawn from the Restatement (Second) of
Conflict of Laws, see Exum v. Vantage Press, Inc., 17 Wash. App. 477,
___ ____ ___________________
478, 563 P.2d 1314, 1315 (1977), which appears generally to accord
with federal common law. See Zapata, 407 U.S. at 11 and n.13 (citing
___ ______
____________________
8Lambert makes no claim that the forum selection clause was
insufficiently conspicuous.
14
Restatement (Second) of Conflict of Laws 80); see also Willis
___ ____
Reese,9 Supreme Court Supports Enforcement of Choice of Forum Claus-
______________________________________________________________
es, 7 Intl. L. 530 (1972) ["Supreme Court Supports Enforcement"]
__ ____________________________________
(expressing view that Zapata analysis should be persuasive in state
______
law context). Thus, as we discern no material discrepancy between
Washington state law and federal law, we need confront neither the
choice-of-law issue nor the daunting question whether forum selection
clauses are to be treated as substantive or procedural for Erie
____
purposes.10 See Coastal Steel Corp. v. Tilghman Wheelabrator Ltd.,
___ ____________________ ___________________________
____________________
9Professor Reese served as Reporter for the Restatement (Second).
10The Supreme Court has yet to provide a definitive resolution of the
Erie issue, see Stewart Organization, Inc. v. Ricoh Corp., 487 U.S.
____ ___ ___________________________ ____________
22, 28-29 (1987) (declining to reach Erie issue), which has divided
____
the commentators and split the circuits. The Second, Ninth and
Eleventh Circuits essentially treat forum clauses as procedural, and
apply federal common law to determine their validity in diversity
cases. See Jones v. Weibrecht, 901 F.2d 17, 19 (2d Cir. 1990);
___ _____ _________
Manetti-Farrow, Inc. v. Gucci America, Inc., 858 F.2d 509 (9th Cir.
_____________________ ____________________
1988); Stewart Organization v. Ricoh Corp., 810 F.2d 1066 (11th Cir.
____________________ ___________
1986) (en banc), aff'd on other grounds, 487 U.S. 22 (1988); see also
_____ __ _____ _______ ___ ____
Taylor v. Titan Midwest Constr. Corp., 474 F.Supp. 145 (N.D. Tex.
______ _____________________________
1979) (applying federal common law on policy grounds, without consid-
ering Erie issue); cf. Northwestern Nat'l. Ins. Co. v. Donovan, 916
____ ___ _____________________________ _______
F.2d 372, 374 (7th Cir. 1990) (Posner, J.) (suggesting that the
application of federal common law is "probably correct"). The Third
and Eighth Circuits, and Justice Scalia (who sought to reach the Erie
____
issue in Stewart), seem to view forum selection clauses as substan-
_______
tive, and would apply state law to determine their validity in the
diversity context. See Stewart Organization, 487 U.S. at 38-41
___ ____________________
(Scalia, J., dissenting); General Eng'g Corp. v. Martin Marietta
_____________________ ________________
Alumina, Inc., 783 F.2d 352, 356 (3rd Cir. 1986); Farmland Indus. v.
_____________ _______________
Frazier-Parrott Commodities, Inc., 806 F.2d 848 (8th Cir. 1986); but
__________________________________ ___
see Sun World Lines, Ltd. v. March Shipping Corp., 801 F.2d 1066, 1069
___ _____________________ ____________________
(8th Cir. 1986) (applying federal common law) (alternate holding).
This court has yet to take a position on the issue, although district
courts within the circuit have endorsed the Ninth and Eleventh Circuit
approach, see, e.g., Northeast Theatre Corp. v. Edie & Ely Landau,
___ ____ ________________________ ____________________
Inc., 563 F. Supp. 833 (D. Mass. 1983), and on one occasion we tenta-
____
15
709 F.2d 190 (3rd Cir. 1983) (declining to reach Erie issue because
____
state law and federal law did not conflict).
Relying on early Massachusetts decisions, however, Lambert
argues that forum selection clauses which oust the jurisdiction of
Massachusetts courts are unenforceable under Massachusetts law. See
___
Nashua River Paper Co. v. Hammermill Paper Co., 223 Mass. 8, 111 N.E.
______________________ _____________________
678 (1916); see also Nute v. Hamilton Mut. Ins. Co., 72 Mass. (1
___ ____ ____ _______________________
Gray) 174 (1856) (intrastate forum clause); cf. Cadillac Auto. Co. v.
___ __________________
Engeian, 339 Mass. 26, 29, 157 N.E.2d 657, 659 (1959) (holding forum
_______
selection clauses "generally" unenforceable under Massachusetts law,
but noting conflicting caselaw authority, and declining to reach the
issue). It is true that these decisions are still cited and followed,
at least in circumstances where the defendant invokes a forum selec-
tion clause in an attempt to deprive the Massachusetts forum of
jurisdiction. See J.S.B. Industries v. Bakery Machinery Distrib.,
___ _________________ __________________________
1991 Mass. App. Div. 1, 1-2 (1991) (holding contractual selection of
New York forum unenforceable under Massachusetts law); see also
___ ____
Northeast Theatre Corp. 563 F. Supp. at 834 (D. Mass. 1983) (stating,
_______________________
____________________
tively treated a forum selection clause as procedural for the limited
purposes of the factor analysis required under the forum non conveni-
ens doctrine articulated in Gulf Oil v. Gilbert, 330 U.S. 501 (1947).
________ _______
See Royal Bed & Spring Co. v. Famossul Industria e Comercio de Moveis
___ _______________________ _______________________________________
Ltda., 906 F.2d 45, 49 (1st Cir. 1990). The complexities of the issue
_____
have been well documented in several student notes. See, e.g., Robert
___ ____
A. de By, Note, Forum Selection Clauses: Substantive or Procedural for
______________________________________________________
Erie Purposes, 89 Colum. L. Rev. 1068 (1989); Julia L. Erickson,
______________
Forum Selection Clauses in Light of the Erie Doctrine and Federal
______________________________________________________________________
Common Law: Stewart Organization v. Ricoh Corporation, 72 Minn. L.
_______________________________________________________
Rev. 1090 (1988).
16
in dictum, that contractual selection of California forum would be
unenforceable under Massachusetts law); compare Graphics Leasing Corp.
_______ ______________________
v. The Y Weekly, 1991 Mass. App. Div. 110 (1991) (holding forum
_____________
selection clause enforceable where parties sought to designate Massa-
chusetts forum); Diversified Mortg. Investors v. Viking Gen. Corp., 16
____________________________ _________________
Mass. App. Ct. 142, 450 N.E.2d 176, 179 (1983) (suggesting enforce-
ability of forum clause designating Massachusetts forum). Recently,
however, the SJC has indicated (in dictum) a more receptive view
toward forum selection clauses, see W.R. Grace & Co. v. Hartford
___ __________________ ________
Accident & Indem. Co., 407 Mass. 572, 582 n.13, 555 N.E.2d 214, 219
______________________
n.13 (1990) ("we see nothing inherently inappropriate in a forum
selection clause"), which appears to accord with the view adopted by
most other state courts, see Francis M. Dougherty, Annotation, Validi-
___ _______
ty of Contractual Provision Limiting Place or Court in Which Action
______________________________________________________________________
May Be Brought, 31 A.L.R. 4th 404 (1992), and with the prevailing
______________
federal court view that forum clauses foster policy interests impor-
tant to the parties and the courts. Zapata, 407 U.S. at 8; Stewart
______ _______
Organization, 487 U.S. at 33 (Kennedy and O'Connor, JJ, concurring);
____________
see Fireman's Fund Am. Ins. Cos. v. Puerto Rican Forwarding Co., 492
___ _____________________________ ____________________________
F.2d 1294, 1297 (1st Cir. 1974); Northeast Theatre Corp., 563 F. Supp.
_______________________
at 834; see also Ernest & Norman Hart Bros., Inc. v. Town Contrac-
___ ____ _________________________________ _____________
tors, Inc., 18 Mass. App. Ct. 60, 64, 463 N.E.2d 355, 358-59 (1984),
___________
rev. den., 392 Mass. 1103, 465 N.E.2d 262 (1984) (surveying caselaw,
____ ____
noting that "the general attitude of courts towards contractual forum
selection provisions obviously has changed in the direction of recog-
17
nizing them", and suggesting that Nashua River and Nute, see supra at
_____________ ____ ___ _____
p. 16, no longer express viable policy in light of evolving federal
doctrine). The current status of Massachusetts law on this issue has
been termed "unclear," Geiger v. Keilani, 270 F. Supp. 761, 766 (E.D.
______ _______
Mich. 1967), and the vitality of the Nute and Nashua River precedents
____ ____________
clouded. "Attorneys advising clients probably would be unwise to rely
on the persistence of the Nute principle in future Massachusetts cases
____
. . . . [although] counsel . . . even now cannot be certain . . . that
Massachusetts will follow [the] newer view [expressed in Zapata]. If
______
the Supreme Judicial Court should now decide to do so, it well may
adopt the modern view prospectively only and in very flexible form
. . .," Ernest & Norman Hart Bros., 18 Mass. App. Ct. at 64, 463
____________________________
N.E.2d at 359; but see Scheck v. Burger King Corp., 756 F. Supp. 543,
___ ___ ______ __________________
546 (S.D. Fla. 1991) (assuming, without discussion, that Massachusetts
courts now would follow federal law, as enunciated by the First
Circuit, and uphold prima facie validity of forum selection clauses).
The viability of Nute and Nashua River is not determinative
____ ____________
in the present case, however, as we think the Massachusetts courts,
consistent with the contracting parties' intention, would apply
Washington law to determine the enforceability of the forum selection
clause.11 See Michael Gruson, Forum-Selection Clauses in Internation-
___ _______________________________________
____________________
11This approach, which relies on the contracting parties' choice of
law as a basis for determining the enforceability of their forum
selection, has been criticized on the ground that "jurisdiction and
venue are concerns separate from choice of law, and . . . determining
the former usually precedes determination of the latter." See Linda
___
S. Mullenix, Another Choice of Forum, Another Choice of Law: Consensu-
_________________________________________________________
18
al and Interstate Commercial Agreements, 1982 U. Ill. L. Rev. 133, 156
_______________________________________
& n.228 [Forum Selection Clauses] ("most states determine the
_____ _________ _______
enforceability of forum-selection clauses under the law governing the
contract"). The present contract provides that the interpretation of
the "terms and conditions of the order documents," including the forum
selection clause, must be governed by Washington law; and even though
Massachusetts law on the enforcement of forum clauses is unsettled,
its courts routinely enforce choice-of-law provisions unless the law
chosen violates established public policy or bears no reasonable
relationship to the contractual transaction between the parties. See
___
Mass. Gen. L. 1-105(1); Morris v. Watsco, Inc., 385 Mass. 672, 674-
______ ____________
75, 433 N.E.2d 886, 887 (1982); Comdisco Disaster Recovery Servs. v.
_________________________________
____________________
al Adjudicatory Procedure in Federal Court, 57 Fordham L. Rev. 291,
____________________________________________
347 (1988); see also Instrumentation Assocs., 859 F.2d at 5 (holding
___ ____ ________________________
that "[lower] court erred by deciding the validity of the contract's
choice of law before considering the threshold question of whether the
parties' contractual choice of a Canadian forum was enforceable under
the conflict of laws principles embodied in Erie"). We do not agree.
____
It is well established that a forum selection clause does not
divest a court of jurisdiction or proper venue over a contractual
______
dispute. Rather, a court addressing the enforceability of a forum
selection clause is to consider whether it must, in its discretion,
__ ___ __________
decline jurisdiction and defer to the selected forum. See Zapata, 407
_______ ___ ______
U.S. at 12; LFC Lessors, 739 F.2d at 6-7. Thus, the constitutional
___________
concerns which prompt the rule that determination of jurisdictional
issues should "usually precede" determination of substantive law apply
only weakly, if at all, in forum selection cases following Zapata.
______
Moreover, following Norton v. Mathews, 427 U.S. 524, 528-33 (1976), we
______ _______
repeatedly have held that complex jurisdictional issues may be by-
passed in circumstances where it is clear that the party challenging
jurisdiction will prevail on substantive grounds in any event. See,
___
e.g., Howard v. Rhode Island Hospital Trust, slip op. at 13 (December
____ ______ ___________________________
2, 1992). Thus, we may bypass the Erie analysis, where state law
____
provides a straightforward substantive basis for resolving the present
controversy.
19
Money Management Systems, Inc., 789
______________________________
F. Supp. 48, 52 (D. Mass. 1992). The Nute and Nashua River cases did
____ ____________
invoke public policy justifications for resisting forum selection
clauses, viz., the dangers of overreaching and the difficulties of
____
applying foreign law in a chosen forum. But even these earlier
decisions "place[d] no great reliance upon" these public policy con-
siderations, Nute, 72 Mass. (1 Gray) at 184, which have been undercut
____
in any event by more recent legal and historical developments.12 We
____________________
12The Nute court expressed the view that "the greatest inconvenience
____
[of contractual forum transfers] would be in requiring courts and
juries to apply different rules of law in different cases, in the
conduct of suits," 72 Mass. (1 Gray) at 184. It also noted that
"contracts [including forum clauses] might be induced by consider-
ations tending to bring the administration of justice into disrepute,
such as the greater or less intelligence and impartiality of judges,
the greater or less integrity and capacity of juries, [and] the
influence, more or less, arising from the personal, social or politi-
cal standing of parties in one or another [jurisdiction]." Id.
___
We think that modern caselaw developments, including the Massa-
chusetts courts' willingness to entertain motions to dismiss based on
the doctrine of forum non conveniens, see Universal Adjustment Corp.
___ ___________________________
v. Midland Bank, Ltd., 281 Mass. 303, 184 N.E. 152 (1933) (Rugg, J.),
__________________
to permit forum selection clauses in contracts principally involving
nonresidents, Mittenthal v. Moscagni, 183 Mass. 19, 23 (1903), and to
__________ ________
enforce forum selection clauses which vest jurisdiction in Massachu-
setts courts, see Graphics Leasing, 1991 Mass. App. Div. at 111,
___ _________________
suggest that Commonwealth courts have largely abandoned any policy
concern that the contracting parties' mutual selection of a non-
Massachusetts forum will impugn "the dignity or convenience of the
[Massachusetts] courts." Id. Furthermore, the Commonwealth courts'
___
more recent acceptance of contracting parties' choice-of-law provi-
sions, Morris, 385 Mass. at 674, and of "flexible" choice-of-law
______
rules, Bushkin Assoc. v. Raytheon Co., 393 Mass. 622, 473 N.E.2d 662
______________ ____________
(1985), would appear to erode Nute's earlier endorsement of the view
____
that the application of "different rules of law in different cases"
would lead to "great[] inconvenience" for courts or juries.
Nashua River, decided after Nute, noted that the rule against
____________ ____
enforcement of forum selection clauses "related to a matter as to
which uniformity of decision and harmony of law among the several
jurisdictions of this country is desirable." 223 Mass. at 16. The
20
think the diminishing importance of the policies cited in these
earlier cases, their waning support in more recent Massachusetts
decisions, and the increasing role and vigor of federal doctrine,
would leave a Massachusetts court unconstrained by the same policy
considerations in applying the parties' chosen law to the choice-of-
forum determination in the present case. See Restatement (Second) of
___
Contracts 178(3) ("in weighing a public policy against enforcement
of a term, account is taken of (a) the strength of that policy as
________________________
manifested by legislation or judicial decisions . . . .") (emphasis
added). As we discern no significant public policy militating against
the application of Washington law in the present circumstances, and
Washington law obviously bore a reasonable relationship to the con-
tract between the parties, we think the Massachusetts courts would
enforce the parties' choice of Washington law.
____________________
SJC noted in Nashua River that virtually all state and federal courts
____________
at that time refused to enforce forum selection clauses. Thus, a
fundamental policy consideration, which underlay the Nute and Nashua
____ ______
River decisions, has undergone an about-face in recent years, as forum
_____
selection clauses are now favored by the majority of state courts and
_______
by the federal courts. See supra p. 17.
___ _____
These historical changes may well explain why the only other
rationale for the Nute and Nashua River precedents the presumed
____ ____________
invalidity of contractual attempts to "oust appropriate courts of
their jurisdiction," Nashua River, 223 Mass. at 19 has been reject-
____________
ed by the Supreme Court as "hardly more than a vestigial legal fic-
tion," predicated on "a provincial attitude regarding the fairness of
other tribunals." Zapata, 407 U.S. at 12. As noted, however, the SJC
______
is not bound by the view expressed in Zapata, and its adoption cannot
______
be presumed. See also Ernest & Norman Hart Bros., 18 Mass. App. at
___ ____ ___________________________
64, 463 N.E.2d at 358-59 ("[i]f the Supreme Judicial Court should now
decide to [follow Zapata], it may well adopt the modern view prospec-
______
tively only and in very flexible form"); see also White-Spunner
___ ____ _____________
Constr., Inc. v. Cliff, 588 So.2d 865, 866 (Ala. 1991) (reaffirming
______________ _____
invalidity of forum clauses under Alabama law).
21
22
C. Reasonableness of Washington Forum
C. Reasonableness of Washington Forum
__________________________________
Under federal law and Washington state law, the contracting
parties' forum selection is to be respected unless the challenging
party "clearly show[s] that enforcement would be unreasonable and
unjust, or that the clause was invalid for such reasons as fraud or
overreaching." Zapata, 407 U.S. at 15; see also Exum, 17 Wash. App.
______ ___ ____ ____
at 478-79, 563 P.2d at 1315; cf. Mangham v. Gold Seal Chinchillas,
___ _______ _______________________
Inc., 69 Wash.2d 37, 45, 416 P.2d 680, 686 (1966) (intrastate agree-
____
ment); Bechtel Civil & Minerals, Inc. v. South Columbia Basin Irrig.
_______________________________ ____________________________
Dist., 51 Wash. App. 143, 146, 752 P.2d 395, 396 (1988) (same). Any
_____
alleged overreaching must be based on something more than the mere
fact that the clause was a "boilerplate" provision printed on the back
of a form contract. See Donovan, 916 F.2d at 377. "It is not the law
___ _______
that one must bargain for each and every written term of a contract,"
Lyall v. DeYoung, 42 Wash. App. 252, 256, 711 P.2d 356, 359 (1985);
_____ _______
"simply because the provision was part of what is called the 'boiler-
plate' section of the contract does not in itself make it unfair."
Reynolds Indus., Inc. v. Mobil Oil Corp., 618 F. Supp. 419, 423 (D.
______________________ ________________
Mass. 1985).
Lambert does not base the present claim on the ground that
the forum selection clause is a "boilerplate" provision. The princi-
pal contention is that the forum selection clause should be overturned
because it would be "seriously inconvenient" for Lambert. Lambert
cites Exum, 17 Wash. App. at 478-79, 563 P.2d at 1315, in which the
____
23
Washington Court of Appeals upheld a trial judge's discretionary
refusal to dismiss an action under a forum clause which required the
suit to be brought in New York. The Exum court noted that "all
____
contacts were made in Washington, partial performance was to be within
the state, all the plaintiff's witnesses reside within the State of
Washington, Defendant's Vice President who solicited Plaintiff resides
in [a state other than New York, and] it would be unjust, inequitable,
and unreasonable to require Plaintiff and all the witnesses to travel
to New York State to litigate the case." Id. See also Gold Seal
___ ___ ____ __________
Chinchillas, 69 Wash.2d at 46-47, 416 P.2d at 686 (refusing to trans-
___________
fer case to contractually selected out-of-state forum, on ground that
chosen forum was "totally unreasonable": all parties and witnesses
resided in Washington, contracts were made and to be performed entire-
ly in Washington, and the dispute was governed by Washington law).
We think Lambert misinterprets Exum. The "serious inconven-
____
ience" test applied in Exum was discussed in detail by the Supreme
____
Court in Zapata, which also cited the rule of Restatement (Second) of
______
Conflicts of Laws 80, see 407 U.S. at 11, and which has been cited
___
with approval by the Washington courts. See Bechtel Civil, 51 Wash.
___ ______________
App. at 146, 752 P.2d at 397 (citing Zapata); see also Supreme Court
______ ___ ____ _____________
Supports Enforcement, supra, at 530 (advocating Zapata's application
____________________ _____ ______
to state laws which are based on the Restatement (Second)); see
___
generally American Mobile Homes of Washington, Inc. v. Sea-First Nat'l
_________ _________________________________________ _______________
Bank, 115 Wash.2d 307, 313, 796 P.2d 1276, 1279 (1990) ("when a state
____
rule is similar to a parallel federal rule we sometimes look to
24
analysis of the federal rule for guidance"). Zapata held (as a matter
______
of federal law) that:
[W]here it can be said with reasonable assurance
that at the time they entered the contract, the
parties to a freely negotiated private interna-
tional commercial agreement contemplated the
claimed inconvenience, it is difficult to see why
any such claim of inconvenience should be heard to
render the forum clause unenforceable. We are not
__ ___ ___
here dealing with an agreement between two Ameri-
____ _______ ____ __ _________ _______ ___ ______
cans to resolve their essentially local disputes
____ __ _______ _____ ___________ _____ ________
in a remote alien forum. In such a case, the
__ _ ______ _____ _____ __ ____ _ ____ ___
serious inconvenience of the contractual forum to
_______ _____________ __ ___ ___________ _____ __
one or both of the parties . . . might suggest
___ __ ____ __ ___ _______ _____ _______
that the agreement was an adhesive one, or that
____ ___ _________ ___ __ ________ ___ __ ____
the parties did not have the particular contro-
___ _______ ___ ___ ____ ___ __________ _______
versy in mind when they made their agreement; yet
_____ __ ____ ____ ____ ____ _____ _________ ___
even there the party claiming should bear a heavy
____ _____ ___ _____ ________ ______ ____ _ _____
burden of proof.
______ __ _____
407 U.S. at 16-17 (emphasis added).13 We think Exum and, more
____
importantly, Gold Seal Chinchillas, fall within the exception Zapata
______________________ ______
articulated to forum selection clause enforceability: in each case,
the defendant sought transfer of an "essentially local dispute" to a
selected forum which was alien to all parties (so far as the record
___ _______
shows), and largely unconnected with the contractual relations at
issue in the case. See Gold Seal Chinchillas, 69 Wash.2d at 46-47,
___ _____________________
416 P.2d at 686; Exum, 17 Wash. App. at 479, 563 P.2d at 1316-16.
____
____________________
13Later federal cases, in this and other circuits, have sometimes
applied an even stricter standard, requiring sophisticated commercial
defendants to show that they would suffer such serious inconvenience
in litigation in the foreign forum that they would be effectively
deprived of their day in court. See Fireman's Fund, 492 F.2d at 1297;
___ ______________
see also, e.g., Pelleport Investors, 741 F.2d at 279; LFC Lessors,
___ ____ ____ ___________________ _____________
Inc. v. Pearson, 585 F. Supp. 1362, 1365 (D. Mass. 1984).
____ _______
25
The bases for the parties' selection of the Washington forum
in the present case are quite dissimilar. The Kysars reside and
operate their business in Washington. Their interest in selecting a
forum the consolidation of litigation involving far-flung opera-
tions was eminently reasonable. The contract in litigation has
strong links to Washington, where it was accepted and largely per-
formed. Moreover, Washington is no more "remote" from Lambert's place
of business than when he executed the order form, either on the
occasion of the present agreement or prior agreements between these
parties. The forum selection clause was printed clearly on the
reverse side of the form, in plain language, and the contract was not
so long as to make it difficult or impossible to read. See D'Antuono
___ _________
v. CCH Computax Sys., Inc., 570 F. Supp. 708, 714 (D.R.I. 1983)
_________________________
(Selya, J.) (interpreting buyer's signature in similar circumstances
as indicative of awareness of forum selection clause and its signifi-
cance); Lyall v. DeYoung, 42 Wash. App. 252, 256, 711 P.2d 356, 358-59
_____ _______
(1985), rev. den., 105 Wash.2d 1009 (1986) ("[i]n the absence of fraud
____ ____
the signator is deemed to have had ample opportunity to study the
contract and its provisions including recitations which are properly
referenced on the back side of the instrument"); H.D. Fowler Co. v.
________________
Warren, 17 Wash. App. 178, 180-81, 562 P.2d 646 (1977) (enforcing
______
attorney fee provision on back of contract despite signatory's claimed
ignorance of its presence). There is no indication that Lambert's
assent resulted from "overreaching or the unfair use of equal bargain-
ing power": Lambert is an experienced merchant who had purchased
26
Christmas trees from the Kysars since 1987 and whose family had sold
Christmas trees in Boston since 1953, see Lambert Affidavit at 3.
___
There is nothing to suggest that he was coerced by the Kysars, or that
the agreement was anything but an arms-length transaction between
parties of roughly equivalent bargaining power. Under these circum-
stances, the contracting parties are bound to the forum selected in
their contract.
D. Application of Forum Selection Clause
D. Application of Forum Selection Clause
_____________________________________
Lambert asserts, finally, that even if the district court
properly dismissed the contract claims under Rule 12(b)(6), the
________
contract-related tort claims were not directly covered by the forum
selection clause, and issues of material fact remain in genuine
dispute, precluding their summary dismissal under Rule 12(b)(6).
Lambert argues, in effect, that he should be permitted to escape the
consequences of the parties' forum selection merely by alleging
tortious conduct relating to the formation (rather than the perfor-
_________
mance) of their contract. We cannot accept the invitation to reward
attempts to evade enforcement of forum selection agreements through
"artful pleading of [tort] claims" in the context of a contract
dispute. Pascalides v. Irwin Yacht Sale North, Inc., 118 F.R.D. 298,
__________ ____________________________
301 (D.R.I. 1988) (quoting Coastal Steel, 709 F.2d at 197); D'Antuono,
_____________ _________
570 F. Supp. at 715. Although the Zapata Court did indicate that a
______
forum selection clause should not be given effect if it was the
product of fraud, see 407 U.S. at 12, the Supreme Court subsequently
___
27
interpreted this exception, in Scherk v. Alberto-Culver Co., 417 U.S.
______ __________________
506 (1974), to exclude the sorts of claims raised by Lambert. The
Court in Scherk stated that
______
[the Zapata fraud exception] does not mean that
______
any time a dispute arising out of a transaction is
based upon an allegation of fraud . . . the clause
is unenforceable. Rather, it means that [a] . . .
forum-selection clause in a contract is not en-
forceable if the inclusion of that clause in the
_________ __ ____ ______ __ ___
contract was the product of fraud or coercion.
________
Id. at 519 n.14 (emphasis in original); see also Gruson, Forum-Selec-
___ ___ ____ ____________
tion Clauses, 1982 U. Ill. L. Rev. at 165 ("a party should not be
____________
permitted to escape a forum-selection provision by merely calling the
validity of the entire contract into question").
The better general rule, we think, is that contract-related
tort claims involving the same operative facts as a parallel claim for
breach of contract should be heard in the forum selected by the
contracting parties. Compare General Environmental Science Corp. v.
_______ ____________________________________
Horsfall, 753 F. Supp. 664, 668 (N.D. Ohio 1990) (refusing transfer of
________
contract-related tort claims where plaintiff asserted no breach of
contract, and cause of action did not directly concern formation or
enforcement of contract containing forum selection clause).
III
III
CONCLUSION
CONCLUSION
__________
As the forum selection clause is valid, exclusive and
28
enforceable, the present action was properly dismissed.
Affirmed.
________
29
Related
Minneapolis & St. Louis Railway v. Columbus Rolling Mill
119 U.S. 149 (Supreme Court, 1886)
Klaxon Co. v. Stentor Electric Manufacturing Co.
313 U.S. 487 (Supreme Court, 1941)
Gulf Oil Corp. v. Gilbert
330 U.S. 501 (Supreme Court, 1947)
Polizzi v. Cowles Magazines, Inc.
345 U.S. 663 (Supreme Court, 1953)
The Bremen v. Zapata Off-Shore Co.
407 U.S. 1 (Supreme Court, 1972)
Norton Ex Rel. Chiles v. Mathews
427 U.S. 524 (Supreme Court, 1976)
Stewart Organization, Inc. v. Ricoh Corp.
487 U.S. 22 (Supreme Court, 1988)
Roto-Lith, Ltd. v. F. P. Bartlett & Co., Inc.
297 F.2d 497 (First Circuit, 1962)
Construction Aggregates Corporation v. Hewitt-Robins, Incorporated
404 F.2d 505 (Seventh Circuit, 1969)
Henry P. Carr v. Israel Learner
547 F.2d 135 (First Circuit, 1976)
Coastal Steel Corp. v. Tilghman Wheelabrator Ltd.
709 F.2d 190 (Third Circuit, 1983)
Lfc Lessors, Inc. v. Pacific Sewer Maintenance Corp.
739 F.2d 4 (First Circuit, 1984)
General Engineering Corporation v. Martin Marietta Alumina, Inc.
783 F.2d 352 (Third Circuit, 1986)
Sun World Lines, Ltd. And Double Cee Investments, Ltd. v. March Shipping Corporation and March Shipping Passenger Services, Peter Deilmann
801 F.2d 1066 (Eighth Circuit, 1986)
Rockwood Manufacturing Corp. v. Amp, Inc.
806 F.2d 142 (Seventh Circuit, 1986)
Nettie Marie Jones v. Edwin H. Weibrecht, Jr., Edwin H. Weibrecht, Jr. v. Nettie Marie Jones
901 F.2d 17 (Second Circuit, 1990)
Royal Bed and Spring Co., Inc. v. Famossul Industria E Comercio De Moveis Ltda.
906 F.2d 45 (First Circuit, 1990)
Romala Corporation, a Delaware Corporation v. The United States
927 F.2d 1219 (Federal Circuit, 1991)
A. Greer Edwards, Jr. v. John Hancock Mutual Life Insurance Company
973 F.2d 1027 (First Circuit, 1992)
Hartwig Farms, Inc. v. Pacific Gamble Robinson Co.
625 P.2d 171 (Court of Appeals of Washington, 1981)
§ 62A.2-103
Washington § 62A.2-103
§ 62A.2-107
Washington § 62A.2-107
§ 62A.2-105
Washington § 62A.2-105
§ 62A.2-
Washington § 62A.2-
§ 62A.2-306
Washington § 62A.2-306
Cite This Page — Counsel Stack
Bluebook (online)
Lambert v. Kysar, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lambert-v-kysar-ca1-1993.