Vitricon, Inc. v. Midwest Elastomers, Inc.

148 F. Supp. 2d 245, 2001 U.S. Dist. LEXIS 9746, 2001 WL 803686
CourtDistrict Court, E.D. New York
DecidedJuly 10, 2001
DocketCV 01-00928
StatusPublished
Cited by3 cases

This text of 148 F. Supp. 2d 245 (Vitricon, Inc. v. Midwest Elastomers, 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
Vitricon, Inc. v. Midwest Elastomers, Inc., 148 F. Supp. 2d 245, 2001 U.S. Dist. LEXIS 9746, 2001 WL 803686 (E.D.N.Y. 2001).

Opinion

WEXLER, District Judge.

This is a breach of contract and breach of warranty action brought pursuant to this court’s diversity jurisdiction. The parties hereto entered into contractual agreements pursuant to which defendant, Midwest Elastomers, Inc., (“Midwest” or “Defendant”) an Ohio corporation, provided plaintiffs Vitricon, Inc., (“Vitricon”) a Delaware corporation and Hanover Specialties, a New York corporation, (collectively “Plaintiffs”) with rubber products. These products were used to manufacture and install rubberized floor surfaces at parks located in Tennessee, Arkansas, Missouri, New York and California.

Presently before the court is the question of the enforceability of a forum-selection clause, which requires that any dispute arising out of the parties’ agreement be commenced in a federal or state court *247 in Ohio. Defendant seeks to dismiss the complaint for lack of personal jurisdiction pursuant to FRCP 12(b)(2) or the failure to state a claim upon which relief may be granted under FRCP 12(b)(6). Plaintiffs seek to retain the action in this court. For the reasons set forth below, motion is denied but the Court will exercise its discretion to transfer this matter to an appropriate forum.

BACKGROUND

I. Facts

In June of 2000, the parties entered into the first of a series of contractual agreements regarding the sale of rubber. On the back of the Midwest order forms, which served as the sales contract, was a list of terms and conditions of sale. Included was the following provision regarding disputes:

Disputes: Any controversy arising in connection between Seller and Buyer shall be governed by the laws of the State of Ohio and a state or federal court within Ohio shall have sole jurisdiction over any litigation resulting therefrom.

(Terms and Conditions of Sale, par. 12) (emphasis added).

II. Plaintiffs’Complaint

Plaintiffs allege that the rubber they purchased from Defendant was defective. Specifically, it is alleged that the rubber discolored when a substance used to prevent the rubber from clumping during shipping mixed with the rubber in its packaging. Plaintiffs seek damages for loss of profits stemming from the costs to repair the floor surfaces. They also seek damages, alleged to be attributable to the loss in their reputations.

III. Defendant’s Motion

Relying on the Terms and Conditions of Sale, as stated in each sales agreement entered into, Defendant seeks dismissal of Plaintiffs’ complaint for lack of personal jurisdiction or for failure to state a claim. Plaintiffs argue that venue in the Eastern District of New York is proper and further, that the forum selection clause does not apply to the claims raised here. Plaintiffs further argue that the clause is and unenforceable because it is boilerplate language contained in a shipping invoice.

DISCUSSION

I. Legal Principles

It is well settled that forum selection clauses that have not been attained through fraud, overreaching or undue influence are fully enforceable. M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 12-13, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972); Jones v. Weibrecht, 901 F.2d 17, 18 (2d Cir.1990). Such clauses control the venue of a controversy unless the moving party bears its heavy burden of showing that enforcement would be so inconvenient as to deprive him of his day in court and would offend public policy. M/S Bremen, 407 U.S. at 18, 92 S.Ct. 1907; Roby v. Corp. of Lloyd’s, 996 F.2d 1353, 1363 (2d Cir.1993). A forum selection clause stated in clear and unambiguous language, although in fine print, is considered reasonably communicated to the plaintiff in determining its enforceability. Effron v. Sun Line Cruises, Inc., 67 F.3d 7, 9 (2d Cir.1995). “Where a company conducts business in many states, a non-negotiatéd forum selection clause included in a sales contract may be enforced even if it was not the subject of bargaining. Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585, 593-595, 111 S.Ct. 1522, 113 L.Ed.2d 622 (1991).

*248 II. Disposition of Motion — The Forum Selection Clause is Valid

Applying the aforementioned principles, the court holds that the forum selection clause here is valid on its face.

In opposition to enforcement of the clause, Plaintiffs raise two arguments. First, Plaintiffs argue the clause cannot be enforced because it constitutes “boilerplate” language that was not subject to negotiation. Second, Plaintiffs argue, even if the clause is valid, it is too narrow to apply to the parties’ present controversy. Neither claim has merit.

A. “B oilerplate Language

Courts have consistently rejected the argument that forum selection clauses contained in pre-printed contracts are unenforceable. See Carnival Cruise Lines, Inc., 499 U.S. 585, 593-594, 111 S.Ct. 1522, 113 L.Ed.2d 622 (1991) (rejecting the determination that a non-negotiated forum selection clause in a form contract is never enforceable merely because it is not the subject of bargaining); see also Effron, 67 F.3d at 9 (2d Cir.1995) (reasonably communicated forum selection clauses in form contracts do not violate notions of fundamental fairness). The terms and conditions of sale, in which the forum selection clause is found, were included on every invoice Vitricon received from Midwest. Each term and condition, including the dispute provision, was stated in clear and unambiguous language. The 'placement of the forum selection clause on the back of the invoice may not be construed as being hidden or buried as not to alert the seller to tbe guidelines of the sale. The forum selection clause is merely a term of the sale of goods, which Vitricon agreed to repeatedly through the numerous agreements it entered into with Midwest. Accordingly, the court must reject the argument that the clause is unenforceable merely because it is part of a pre-printed form.

B. Scope of the Clause

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Cite This Page — Counsel Stack

Bluebook (online)
148 F. Supp. 2d 245, 2001 U.S. Dist. LEXIS 9746, 2001 WL 803686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vitricon-inc-v-midwest-elastomers-inc-nyed-2001.