Shelter Mutual Insurance Company v. Rimkus Consulting Group, Inc. of Louisiana

148 So. 3d 871, 2014 WL 2937113, 2014 La. LEXIS 1568
CourtSupreme Court of Louisiana
DecidedJuly 1, 2014
Docket2013-CC-1977
StatusPublished
Cited by39 cases

This text of 148 So. 3d 871 (Shelter Mutual Insurance Company v. Rimkus Consulting Group, Inc. of Louisiana) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shelter Mutual Insurance Company v. Rimkus Consulting Group, Inc. of Louisiana, 148 So. 3d 871, 2014 WL 2937113, 2014 La. LEXIS 1568 (La. 2014).

Opinions

JOHNSON, Chief Justice.

hWe granted this writ application to resolve a split in the circuit courts of appeal regarding whether forum selection clauses are per se violative of public policy in Louisiana. Answering that question in the [872]*872negative, we reverse the rulings of the lower courts.

FACTS AND PROCEDURAL HISTORY

Shelter Mutual Property Insurance Company (“Shelter”) retained Rimkus Consulting Group, Inc. (“Rimkus”) to provide an engineering evaluation and expert witness services in connection with its defense of litigation resulting from a claim for hurricane damages brought by a corporation insured by Shelter. Rimkus sent Shelter a letter confirming the engagement and indicating Rimkus’ services were subject to its “Terms and Conditions” attached to the letter. The “Terms and Conditions” included a forum selection clause which required venue for any suits arising out of the contract to be in Harris County, Texas.

When a dispute arose, Shelter filed suit against Rimkus in the 15th Judicial District Court for the Parish of Lafayette. Shelter essentially asserted Rimkus issued an erroneous opinion relative to the cause of the property damage and failed to Improperly estimate the underlying repair costs, causing Shelter to incur liability for bad faith damages and additional costs relative to further litigation.1 Rimkus filed an exception of improper venue, arguing the forum selection clause included in its “Terms and Conditions” required suit to be brought in Texas. Shelter opposed the exception, arguing it never agreed to the unilateral “Terms and Conditions” and thus they were not part of the agreement between the parties. Further, Shelter asserted even if the “Terms and Conditions” formed part of the agreement, the forum selection clause should not be enforced because enforcement would be unreasonable, unjust, and contravene a strong public policy of Louisiana.

The trial court found the parties had tacitly agreed to be bound by the “Terms and Conditions.” Recognizing a split in the circuit courts of appeal regarding whether forum selection clauses violate the public policy of this state, and being bound by the Third Circuit, the trial court overruled Rimkus’ exception of improper venue citing Thompson Tree & Spraying Serv., Inc. v. White-Spunner Const., Inc2 which held forum selection clauses are against the public policy of Louisiana. Rimkus applied for supervisory writs and the court of appeal denied the writ, finding no error in the trial court’s ruling.3 Rimkus filed the instant writ application in this court, which we granted.4

DISCUSSION

While we granted this writ application solely to resolve the split in the circuits regarding whether forum selection clauses violate public policy in Louisiana, as a ^preliminary matter we first briefly address Shelter’s assertion that the “Terms and Conditions” containing the forum selection clause were not negotiated terms between the parties and therefore not part of its agreement with Rimkus.

Contrary to Shelter’s contentions, we find the trial court clearly ruled the “Terms and Conditions” applied to the [873]*873parties. Although the trial judge denied the exception of venue based on Thompson Tree, a reading of the transcript demonstrates that he also determined the “Terms and Conditions” applied. Specific to the parties’ arguments relative to whether the “Terms and Conditions” were applicable, the trial judge stated “[wjell, frankly, I’m prepared to make some decisions relative to the merits of that argument so that when it goes forward, a Court of Appeal or the Supreme Court has an opportunity to look at it.” The court went on to rule:

All right. The issue with respect to venue is denied based on the Thompson Tree Service case. I believe I am obligated to follow the recent dictates of the Third Circuit relative to a forum selection clause. Absent Thompson Tree Service, I was inclined to grant the motion. While there is no written contract in this particular case, in looking at the details associated with the “terms and conditions” provided and without objection, and considering the prior contractual agreement between the parties, I believe that the forum selection clause would prevail.
Of specific note is the detail of how billing would be done in the terms and conditions. And I cannot imagine that all those terms and conditions relative to billing would have been discussed by a telephone call which did no more than employ Rimkus and do expert work for this case.
Under those circumstances, it is clearly more probable than not that the parties had agreed tacitly to return to the terms and conditions of allotment. Nevertheless, because of the Thompson Tree Service ease, the matter stays before me, much to my chagrin. (Emphasis added).

After reviewing the record, we agree with the trial court’s ruling and hold the course of conduct between the parties supports a finding that the parties tacitly agreed the “Terms and Conditions” would be applicable to Shelter’s engagement of Rimkus. The “Terms and Conditions” were sent to Shelter as part of Rimkus’ confirmation letter ^accepting the job assignment and agreeing to provide services to Shelter. Shelter had previously retained Rimkus for consulting services numerous times and the same “Terms and Conditions” were routinely provided as part of its job acceptance.5 Further, on three prior occasions, the same counsel for Shelter expressly accepted these “Terms and Conditions.” There is nothing in the record to indicate Shelter disputed or objected to the “Terms and Conditions” prior to opposing the exception of venue. And, as noted by the trial court, the parties acted in accordance with the “Terms and Conditions” relative to billing and payments during the job assignment. Notably, the “Terms and Conditions” is the only agreement or contract in the record which sets forth particular provisions and obligations of the parties relative to this job assignment. Finding the “Terms and Conditions” applicable, we now examine jurisprudence relative to the enforceability of forum selection clauses in Louisiana.

“A forum selection clause is a provision in a contract that mandates a particular state, county, parish, or court as the proper venue in which the parties to an action must litigate any future disputes regarding their contractual relationship.”6

[874]*874Historically, many American courts had found such clauses to be invalid as against public policy. However, that began to change in 1972 with the United States Supreme Court’s decision in Bremen v. Zapata Off-Shore Co,7 In Bremen, the Court noted that forum selection clauses had not been historically favored by American courts and that “many courts, federal and state, have declined to enforce such clauses on the ground that they were ‘contrary to public policy,’ or that their effect was to ‘oust the jurisdiction’ of the court.”8 The Bremen Court rejected that viewpoint. The Court 15described the traditional view that forum selection clauses imper-missibly oust courts of jurisdiction as a “vestigial legal fiction.”9

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Akili Johari Senior v. Overlog Inc.
Louisiana Court of Appeal, 2025

Cite This Page — Counsel Stack

Bluebook (online)
148 So. 3d 871, 2014 WL 2937113, 2014 La. LEXIS 1568, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shelter-mutual-insurance-company-v-rimkus-consulting-group-inc-of-la-2014.