America Online, Inc. v. Booker, 3D00-2020.
| Decision Date | 07 February 2001 |
| Docket Number | No. 3D00-2020.,3D00-2020. |
| Citation | 781 So.2d 423 |
| Parties | AMERICA ONLINE, INC., Appellant, v. Hampton G. BOOKER, and Arthur E. Sweeney, Jr., individually and on behalf of all others similarly situated, Appellees. |
| Court | Florida District Court of Appeals |
Gerald J. Houlihan, and Julie A. Zahniser, Miami; Mayer, Brown & Platt, and Robert J. Kriss, and Michael Scodro, and Kenneth J. Merlino, for appellant.
Kluger, Peretz, Kaplan & Berlin, and Abbey L. Kaplan; Andrew V. Tramont, Miami; Honey L. Kober, for appellees.
Before COPE, GERSTEN, and GREEN, JJ.
Clarification/Rehearing En Banc Denied April 18, 2001.
America Online, Inc. ["AOL"], appeals an adverse order in a breach of contract action brought by member subscribers, which certified a class action and denied AOL's motion to dismiss for improper forum. We reverse, finding the trial court erred in refusing to enforce the forum selection clause.
Appellees Hampton G. Booker and Arthur E. Sweeney (hereafter collectively referred to as "plaintiffs") filed a putative class action on behalf of themselves and other current and former member/subscribers of appellant America Online, Inc. ("AOL"). The amended complaint alleged AOL breached its "Terms of Service" ("TOS") contract with member subscribers by charging members for time spent reading "pop up" advertisements.
After the plaintiffs moved for class certification, AOL filed a motion to dismiss for improper forum. The TOS contained a forum selection clause which required plaintiffs to bring claims in Virginia.1 The plaintiffs opposed the motion to dismiss arguing they would effectively be denied a remedy if the forum selection clause were to be enforced. Since there is no mechanism for class actions in Virginia state courts, the plaintiffs contended they would have to litigate individual cases in Virginia small claims court, and that to do so would be economically impractical.
The trial court decided it could not determine the dismissal issue until after it determined whether the case should be certified as a class action. It subsequently heard further arguments and granted the plaintiffs' motion to certify. AOL's motion to dismiss was denied on the basis the forum selection clause was unenforceable because it would prevent the plaintiffs from utilizing their class action remedy. AOL appeals the adverse order.
Contractual forum selection provisions are presumptively valid and generally enforceable. M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972); Manrique v. Fabbri, 493 So.2d 437 (Fla.1986). Courts have recognized that forum selection clauses enhance contractual and economic predictability, while conserving judicial resources and benefitting commercial entities as well as consumers. Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585, 594, 111 S.Ct. 1522, 113 L.Ed.2d 622 (1991).2
To promote these policy goals, Florida courts are directed to give effect to agreements on forum selection in order to "recognize the legitimate expectations of contracting parties." Manrique v. Fabbri, 493 So.2d at 440; see Prestige Rent-A-Car, Inc. v. Advantage Car Rental and Sales, Inc., 656 So.2d 541 (Fla. 5th DCA 1995); Tuttle's Design-Build, Inc. v. Florida Fancy, Inc., 604 So.2d 873 (Fla. 2d DCA 1992). The only exception to this general rule is narrowly drawn where there is a showing that enforcement would be unreasonable or unjust; the exception is not triggered by mere inconvenience or additional expense. Manrique v. Fabbri, 493 So.2d at 440.
Here, the forum selection provision was obtained through a freely negotiated agreement which has not been shown by the plaintiffs to be either unreasonable or unjust. The unavailability of a class action procedure in the...
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