FORUM SELECTION CLAUSE ENFORCED BY MANDAMUS: In re International Profit Assoc. Inc. (Tex. 2009)

TEXAS SUPREME COURT GRANTS PETITION FOR MANDAMUS TO ENFORCE CONTRACTUAL FORUM-SELECTION CLAUSE

In re Int'l Profit Associates, Inc. (Tex. 2009)
No. 08-0531 (Tex. Jun. 12, 2009) (per curiam) (mandamus granted to enforce forum selection and choice-of-law clause) (methods to challenge forum selection clauses) (enforceability of forum selection clause) (sufficiency of disclosure of contractual terms)

FROM THE PER CURIAM OPINION:

In a recent case also involving IPA and the enforceability of a forum-selection clause, we explained that, as a general rule, forum-selection clauses are enforceable, and the party challenging the forum-selection clause bears a heavy burden of proof. In re Int’l Profit Assocs., Inc., 274 S.W.3d 672, 675 (Tex. 2009) (citing In re Lyon, 257 S.W.3d at 231–32).

A trial court abuses its discretion in refusing to enforce the forum-selection clause, unless the party opposing enforcement of the clause can clearly show that: (1) enforcement would be unreasonable or unjust, (2) the clause is invalid for reasons of fraud or overreaching, (3) enforcement would contravene a strong public policy of the forum where the suit was brought, or (4) the selected forum would be seriously inconvenient for trial. Id. Applying this standard to the present case, we conclude that the trial court clearly abused its discretion by placing the burden of proof on IPA to demonstrate that it showed the forum-selection clause to Riddell.
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[T]he party challenging a forum-selection clause has the burden of proving the clause is invalid, and the party seeking to enforce the forum-selection clause is not obligated to prove that it specifically showed the clause to the opposing party as a condition of enforcement. Because the trial court placed the burden of proof on IPA and required the company to prove that it showed the forum-selection clause to Riddell, it clearly abused its discretion in denying IPA’s motion to dismiss. Accordingly, we conditionally grant mandamus relief and direct the trial court to vacate its order denying IPA’s motion to dismiss and enter an order granting the motion.

IN RE INTERNATIONAL PROFIT ASSOCIATES, INC., INTEGRATED BUSINESS ANALYSIS, INC., ACCOUNTANCY ASSOCIATES, LLC., INTERNATIONAL TAX ADVISORS, INC., AND HUEY MITCHELL, JR.; from Dallas County; 5th district (05-08-00809-CV, ___ SW3d ___, 06-30-08)stay order issued March 11, 2009, lifted
Pursuant to Texas Rule of Appellate Procedure 52.8(c), without hearing oral argument, the Court conditionally grants the petition for writ of mandamus.Per Curiam Opinion
Per Curiam Opinion [pdf version of opinion on Supreme Court's website]

RELATED CONCEPTS: ENFORCEABILITY OF CONTRACTS, WAIVERS: conspicuousness requirement, knowing waiver of right to jury trial Jury waiver enforceability of arbitration agreement CONTRACT FORMATION AND ENFORCEABILITY: party has duty to read what he signs

2008-06-20 Texas Supreme Court Issues Mandamus in Two Cases

Forum Selection Clause enforced by Mandamus

In re Lyon Financial Services, Inc. (Tex. 2008)
No. 07-0486 (Tex. June 20, 2008)(per curiam) (orig. proc.) (mandamus, forum selection clause, motion to dismiss improperly denied)

Finding no evidence in the record to overcome the presumption that the forum-selection clause included in the documents executed by the parties is valid, the Texas Supreme Court, in a per curiam opinion, concludes that the trial court abused its discretion in denying Lyon’s motion to dismiss. The Court grants the petition for writ of mandamus and orders the trial court to vacate its order denying Lyon’s motion to dismiss MNI’s suit. As is the custom, the writ is issued conditionally, pending compliance by the lower court.

IN RE LYON FINANCIAL SERVICES, INC.; from Hidalgo County; 13th district (13-07-00269-CV, ___ SW3d ___, 05-31-07) Pursuant to Texas Rule of Appellate Procedure 52.8(c), without hearing oral argument, the Court conditionally grants the petition for writ of mandamus. Per Curiam Opinion

No Waiver of Right to Enforce Arbitration Agreement Here

In Re Fleetwood Homes of Texas, LP (Tex. 2008)
No. 06-0943 (Tex. June 20, 2008)(per curiam) (original proceeding) (motion to compel arbitration, no waiver found, mandamus granted)

Finding that Gulf has failed to show that Fleetwood waived its contractual right to arbitrate, the Texas Supreme Court conditionally grants Fleetwood’s petition for writ of mandamus in a per curiam opinion and orders the trial court to send the parties to arbitration.

IN RE FLEETWOOD HOMES OF TEXAS, L.P. AND FLEETWOOD ENTERPRISES, INC.; from Walker County; 10th district (10-06-00312-CV, ___ SW3d ___, 10-25-06) Pursuant to Texas Rule of Appellate Procedure 52.8(c), without hearing oral argument, the Court conditionally grants the petition for writ of mandamus.