Vacation Ventures, Inc. v. Holiday Promotions, Inc.

687 So. 2d 286, 1997 Fla. App. LEXIS 147, 1997 WL 14133
CourtDistrict Court of Appeal of Florida
DecidedJanuary 17, 1997
Docket96-1084
StatusPublished
Cited by10 cases

This text of 687 So. 2d 286 (Vacation Ventures, Inc. v. Holiday Promotions, Inc.) is published on Counsel Stack Legal Research, covering District Court of Appeal of Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vacation Ventures, Inc. v. Holiday Promotions, Inc., 687 So. 2d 286, 1997 Fla. App. LEXIS 147, 1997 WL 14133 (Fla. Ct. App. 1997).

Opinion

687 So.2d 286 (1997)

VACATION VENTURES, INC., Appellant,
v.
HOLIDAY PROMOTIONS, INC., Appellee.

No. 96-1084.

District Court of Appeal of Florida, Fifth District.

January 17, 1997.

*287 Lilburn R. Railey, III and Mary M. Wills of Mathews Railey DeCubellis & Goodwin, P.A., Orlando, for Appellant.

Thomas R. Harbert, Michael A. Paasch and John C. Alvarez of Mateer & Harbert, P.A., Orlando, for Appellee.

COBB, Judge.

Vacation Ventures, Inc. (VVI), appeals from a final order dismissing its complaint against Holiday Promotions, Inc. (Holiday) due to lack of in personam jurisdiction.

VVI is a Florida corporation with its principal offices in Orange County, Florida. Holiday is a Canadian corporation located in Ontario, Canada. VVI is a registered seller of travel services and provides travel packages to businesses for use in consumer promotions and employee incentive programs. In 1992, the parties executed a purchase agreement for the sale of travel vouchers by VVI to Holiday. Holiday from time to time placed orders with VVI pursuant to the purchase agreement for travel certificates. Holiday made payments to VVI for the travel certificates by mailing its corporate check to VVI's Florida office.

VVI filed suit against Holiday in Orange County circuit court seeking to recover $27,565.76 allegedly owed by Holiday pursuant to the purchase agreement. Causes of action for breach of contract, account stated and open account were asserted. Attached to the complaint as exhibits are a copy of the purchase agreement as well as copies of ten allegedly unpaid invoices. VVI alleged that payment was payable in Orange County, Florida. Holiday filed an answer and affirmative defenses and denied, inter alia, that payment was due in Orange County, Florida.

With respect to payment, the purchase agreement provides at paragraph 3(a):

Manner and Payment of Shipments. All shipments will be made directly to purchaser with payment to be made either (1) based upon prepayment in full for all certificates ordered, including shipping charges, in the form of a cashier's check or money order; or (ii) on a C.O.D. basis with payment made to the shipper, and payable to VVI, in the form of a cashier's check or money order. Any variance from this procedure must be approved in writing by an authorized officer of VVI.

The only payment terms appearing on the invoices provide that payment is due on receipt of the invoice. The invoices do not specify where payment is to be made.

Paragraph 5(b) of the purchase agreement contains the following "consent to jurisdiction" provision:

Purchaser consents, agrees and stipulates that (i) this Agreement shall be deemed fully executed and performed in the State of Florida and shall be governed by and construed in accordance with the laws thereof; (ii) in any action, proceeding, or appeal of any matter related to or arising out of this Agreement, Purchaser shall be subject to the personal jurisdiction of the State of Florida or any state selected by VVI or its assignee; (iii) Purchaser shall accept venue in any federal or state court selected by VVI; and (iv) Purchaser expressly waives any right to a trial by jury.

Holiday additionally asserted in its answer and affirmative defenses that the trial court lacked in personam jurisdiction over it under the Florida long-arm statute and that Holiday lacked sufficient minimum contacts with Florida to satisfy constitutional due process requirements. Finally, Holiday denied that any amounts were owed to VVI. VVI replied to the affirmative defenses by asserting that by way of the forum selection clause contained in the purchase agreement, Holiday had waived any right to object to personal jurisdiction over it by the Florida court and *288 had submitted itself to the state's jurisdiction.

Holiday moved to dismiss on the basis of lack of in personam jurisdiction. Holiday asserted that a forum selection clause alone does not satisfy Florida's long arm statute and claimed that it lacked sufficient minimum contacts with Florida. Holiday attached to its motion the affidavits of two of its employees, Shouldice and Cubitt. According to these affidavits, the purchase agreement was executed by Holiday at its Ontario office, which was its only place of business. At no time did any agent of Holiday ever travel to Florida for the purpose of negotiating or executing the agreement. Shouldice averred that:

5. HOLIDAY marketed its products and services exclusively in Canada and never transacted business in Florida or in the United States of America. HOLIDAY has never maintained an office in Florida nor owned any real property in Florida.
6. HOLIDAY has never maintained a bank account in Florida, a post office box in Florida, a telephone number in Florida or a mail drop in Florida.
7. At all times during the term of the above-referenced agreement, all of the travel vouchers at issue in this litigation were delivered to HOLIDAY in Canada. HOLIDAY never traveled to Florida to pick up such vouchers.

No counter-affidavit was filed by VVI.

Following a hearing on the motion to dismiss, the trial court entered an order dismissing the action, giving rise to this appeal.

In determining whether jurisdiction over an out of state defendant is appropriate in a given case, the court must first determine whether the complaint alleges sufficient jurisdictional facts to bring the action within the Florida long-arm statute. If so, the court must next determine whether Florida can constitutionally exercise jurisdiction over the defendant. This constitutional inquiry itself involves a two prong analysis: first, whether the defendant has sufficient minimum contacts with Florida to allow Florida, consistent with due process, to assert jurisdiction over the defendant and second, whether such assertion of jurisdiction would offend traditional notions of fair play and substantial justice. Magic Pan International, Inc. v. Colonial Promenade, 605 So.2d 563 (Fla. 5th DCA 1992). See also Venetian Salami Co.v. Parthenais, 554 So.2d 499 (Fla. 1989).

(A) DOES VVI'S COMPLAINT SATISFY THE REQUIREMENTS OF FLORIDA'S LONG-ARM STATUTE?

This case involves a forum selection clause whereby Holiday consented to the personal jurisdiction of the Florida courts or any state selected by VVI concerning any action arising out of the purchase agreement. In McRae v. J.D./M.D., Inc., 511 So.2d 540 (Fla.1987), the supreme court held that a forum selection clause alone cannot operate as the sole basis to exercise personal jurisdiction over a non-resident defendant. The clause in question provided that suit on the contract would be brought in Florida. The court explained that the legislature has set forth in the long-arm statute the policy of this state concerning when Florida courts can exercise in personam jurisdiction over non-resident defendants and that "conspicuously absent from the long-arm statute is any provision for submission to in personam jurisdiction merely by contractual agreement." 511 So.2d at 543. Rather, a forum selection provision can be enforced only after an independent basis is established for the Florida court to exercise in personam jurisdiction over the objecting, non-resident defendant. In McRae, the defendant had engaged in none of the acts set forth in section 48.193 so its motion to quash service should have been granted.

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Cite This Page — Counsel Stack

Bluebook (online)
687 So. 2d 286, 1997 Fla. App. LEXIS 147, 1997 WL 14133, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vacation-ventures-inc-v-holiday-promotions-inc-fladistctapp-1997.