Prezocki v. Bullock Garages, Inc.
| Decision Date | 27 February 1997 |
| Docket Number | No. 96-SC-114-DG,96-SC-114-DG |
| Parties | Richard PREZOCKI and Gizella Prezocki, Appellants, v. BULLOCK GARAGES, INC., Appellee. |
| Court | United States State Supreme Court — District of Kentucky |
David S. Sprawls, Louisville, for appellants.
James L. Theiss, LaGrange, for appellee.
We granted discretionary review in this case to determine the enforceability of a forum selection clause contained in a contract for the construction of a garage. Appellants, the Prezockis, filed an action for damages against appellee, Bullock Garages, Inc. in Oldham District Court, which subsequently dismissed appellants' action. On appeal, the Oldham Circuit Court affirmed the district court's decision, while the Court of Appeals denied discretionary review.
On April 3, 1994, the Prezockis and Bullock Garages entered into a construction contract whereby Bullock Garages agreed to build a 24' X 24' garage in return for the Prezockis' payment of $7,970. The contract was pre-printed on a form and the only negotiated terms were written in hand on the front of the contract. Although appellants signed the form at the bottom of the front page, small italicized language immediately above the signatures stated as follows: "Please read both front and back of this contract before signing." Both the front and the back of the form also contained cautionary language stating, "Do not sign this contract before you read it or if it contains any blank spaces ..." The back of the form further cautioned, "ADDITIONAL TERMS OF CONTRACT--PLEASE READ BEFORE SIGNING." Within the ten additional terms on the back of the form was a forum selection clause stating:
ILLINOIS LAW TO GOVERN
This contract shall be governed by the laws of the State of Illinois, both as to interpretation and performance. The place of this contract, its situs and forum, shall at all times be the State of Illinois. All matters relating to the validity, construction, interpretation and enforcement of this contract shall be determined in the appropriate courts in the State of Illinois.
Following the completion of the garage, the Prezockis filed a complaint against Bullock Garages in Oldham District Court alleging breach of contract, negligence, and breach of Kentucky's building codes and Oldham County's building ordinances. Bullock Garages subsequently filed a motion to dismiss asserting that the forum selection clause within the contract required any lawsuit to be filed in Illinois. The Oldham District Court dismissed the case without prejudice, notating by hand in the bottom corner of the order that it was relying upon Creditors Collection Bureau, Inc. v. Access Data, Inc., 820 F.Supp. 311 (W.D.Ky.1993), a case upholding a Tennessee forum selection clause for contract disputes. No additional findings or reasoning is reflected in the record.
Citing Prudential Resources Corp. v. Plunkett, Ky.App., 583 S.W.2d 97 (1979), a case involving a Texas forum selection clause in a contract between nonresidents of Kentucky, the Oldham Circuit Court affirmed the district court's judgment, declining to find the forum selection clause to be "unfair or unreasonable" under the circumstances. The circuit court further determined that no "undue hardship" would result if appellants had to litigate the action in Illinois. The judge based his decision on the Prezockis' failure "to show that the...
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