Diamond Offshore (Bermuda), Ltd. v. Haaksman
355 S.W.3d 842
Tex. App.2011Background
- Quinn and McCartney, Dutch employees of Diamond Offshore (Bermuda), sued in the Netherlands for damages; Dutch judgments were entered in their favor under Dutch law.
- Diamond Bermuda faced recognition proceedings in Texas to have the Dutch judgments recognized under the UFCMJRA.
- The Dutch proceedings involved forum-selection and choice-of-law clauses in the employees' employment agreements designating Bermuda as the forum and Bermuda law.
- Diamond Bermuda had raised special appearances and nonrecognition motions in Texas; the trial court denied nonrecognition and recognized the Dutch judgments.
- On appeal, Diamond Bermuda argued the Dutch suits violated the forum-selection clauses, and thus the Dutch judgments should not be recognized under UFCMJRA § 36.005(b)(5).
- Texas appellate authority since AIU/Automated Collection Technologies adopts the Bremen framework; the issue here focuses on whether enforcement of forum-selection clauses justifies nonrecognition or whether discretionary factors permit recognition nonetheless.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Dutch proceedings violated forum-selection clauses | Quinn/McCartney argue Dutch actions contravene Bermuda forum | Diamond Bermuda asserts nonrecognition under §36.005(b)(5) due to contrary forum agreement | Nonrecognition not required; discretionary factors allow recognition |
Key Cases Cited
- Courage Co., L.L.C. v. Chemshare Corp., 93 S.W.3d 323 (Tex.App.-Houston [14th Dist.] 2002) (de novo review of recognition; discretionary grounds exist)
- Beluga Chartering, B.V. v. Timber S.A., 294 S.W.3d 300 (Tex.App.-Houston [14th Dist.] 2009) (mandatory vs discretionary grounds; limits on relitigation)
- In re AIU Ins. Co., 148 S.W.3d 109 (Tex. 2004) (adoption of Bremen framework for forum-selection clauses)
- In re Automated Collection Techs., Inc., 156 S.W.3d 557 (Tex.2004) (per curiam; Bremen approach applied to forum clauses)
- Deep Water Slender Wells, Ltd. v. Shell Int'l Exploration & Prod., Inc., 234 S.W.3d 679 (Tex.App.-Houston [14th Dist.] 2007) (forum-selection clause enforceability under Bremen analysis; discretionary nonrecognition)
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (U.S. Supreme Court, 1972) (prescribes Bremen framework for enforceability of forum-selection clauses)