263 So. 3d 1035
Ala.2018Background
- Caterpillar sued JRD Contracting, Inc. and John R. Dailey in Wilcox County for breach of loan/guaranty obligations; JRD (an Alabama corporation) later filed third-party claims against International Paper Company (IPC) and three IPC employees.
- JRD C & L had a waste‑services agreement with IPC containing an outbound forum‑selection clause naming Tennessee courts as having exclusive jurisdiction for disputes under the agreement.
- IPC moved to dismiss the third‑party complaint under Rule 12(b)(3) for improper venue based on that forum‑selection clause and moved to stay proceedings pending the venue ruling.
- The trial court denied a continuance, kept IPC’s motion "under advisement," and nonetheless set discovery, summary‑judgment deadlines, and a trial date.
- IPC petitioned this Court for a writ of mandamus to compel the circuit court to rule on the motion to dismiss; this Court stayed the lower proceedings and granted the petition.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether mandamus may compel the trial court to rule on a pending motion to dismiss for improper venue (outbound forum‑selection clause) | IPC: trial court must promptly rule; venue is threshold; failure forces waiver or undue litigation expense | JRD: venue is proper in Wilcox County; litigation may proceed while court considers venue | Writ granted — trial court exceeded discretion by leaving motion "under advisement" while allowing merits discovery and setting trial dates; court must rule on the motion |
| Whether setting merits deadlines and continuing litigation while venue motion pending constitutes waiver of the forum clause | IPC: proceeding with discovery/trial dates forces waiver or substantial invocation of litigation process | JRD: continued litigation appropriate; no waiver shown | Court did not decide waiver on merits but held the trial court erred in sequencing (must rule on venue motion before advancing merits) |
| Standard for enforcing outbound forum‑selection clauses | IPC: forum clause should be enforced unless challenging party shows unfairness or unreasonable inconvenience | JRD: challenges to clause (fraud, undue influence, inconvenience) justify refusing enforcement | Court recited the governing rule (majority rule): clauses upheld unless clearly shown unfair or unreasonable; but did not resolve clause’s enforceability — ordered trial court to rule |
Key Cases Cited
- Ex parte Rymer, 860 So.2d 339 (Ala. 2003) (outbound forum‑selection clause implicates venue)
- Ex parte Ford Motor Credit Co., 607 So.2d 169 (Ala. 1992) (mandamus may compel trial court to rule on pending motion when judge unreasonably delays)
- Ex parte Monsanto Co., 794 So.2d 350 (Ala. 2001) (court directed trial court to decide change‑of‑venue motion promptly before other matters)
- Ex parte D.M. White Constr. Co., 806 So.2d 370 (Ala. 2001) (mandamus appropriate vehicle to review refusal to enforce an outbound forum‑selection clause)
- Ex parte CTB, Inc., 782 So.2d 188 (Ala. 2000) (forum‑selection clause enforcement review is for abuse of discretion)
- Ex parte Leasecomm Corp., 886 So.2d 58 (Ala. 2003) (extraordinary‑writ standards and forum‑selection clause principles)
- Professional Ins. Corp. v. Sutherland, 700 So.2d 347 (Ala. 1997) (adopting majority rule: outbound clause enforced unless unfair or unreasonable)
- Ex parte Spencer, 111 So.3d 713 (Ala. 2012) (party may waive a forum‑selection clause by substantially invoking litigation process)
