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Supreme Court of the United States - 499 U.S. 585
Tags: Personal Jurisdiction
See also: The Bremen
This admiralty dispute involves the enforceability of a forum-selection clause in tickets issued by Carnival Cruise Lines. The clause requires any disputes arising from the contract to be litigated in a court located in Florida. The Supreme Court granted certiorari to determine whether the District Court should hear the tort claim against the petitioner. The Court did not address whether respondents had sufficient notice of the forum clause before entering the contract for passage. The Court of Appeals erred in automatically deciding that the forum-selection clause was unenforceable because respondents were not business persons and did not negotiate the terms of the clause with petitioner. A non-negotiated forum-selection clause in a form ticket contract may be enforceable if it is reasonable.
Justice Stevens dissents from the Court's decision to enforce a forum-selection clause in a passenger ticket issued by Carnival Cruise Lines. He argues that such clauses are unjust, unreasonable, and against public policy, and that they weaken the passenger's right to claim damages resulting from the carrier's negligence. Contracts of adhesion, such as passenger tickets, are subject to scrutiny for reasonableness under traditional contract law. Even if passengers were given clear notice of the forum-selection clause before purchasing their tickets, Justice Stevens believes that the clause is unenforceable under federal admiralty law and the Limitation of Vessel Owner's Liability Act.
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