292 P.3d 165
Wyo.2013Background
- Venard sustained severe injuries during a paragliding training session at Palisades Reservoir, Wyoming, where he was towed by a boat and fell 35 feet.
- Venard was a USHPA member and sought a Flight Proficiency Rating; both required signing a Release, Waiver and Assumption of Risk Agreement.
- The USHPA agreement includes a forum selection clause designating California law and California courts for disputes.
- Appellees filed a motion to dismiss in Wyoming based on the forum clause, arguing they were third-party beneficiaries and California is proper.
- The district court granted dismissal, concluding the forum clause was enforceable against Venard; Venard appealed.
- The Wyoming Supreme Court reverses, concluding the forum clause is not enforceable against non-parties in this dispute.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the district court abused its discretion enforcing the forum clause. | Venard: third-party beneficiaries cannot be bound; no advance consent. | Appellees: are bound as third-party beneficiaries or via consent. | Yes; the district court abused discretion; clause not enforceable against non-parties. |
| Whether Venard and Appellees consented in advance to California forum. | Venard: no advance consent by Appellees. | Appellees: consent through their USHPA agreements suffices. | No; no advance consent by Appellees to California jurisdiction. |
| Whether prior California-consent by non-signatories binds them to the clause. | Not applicable; not signatories to contract. | Non-signatories bound as third-party beneficiaries. | Not applicable; not bound. |
Key Cases Cited
- Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (U.S. 1991) (forum clauses aid predictability and efficiency, but must be fair)
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (U.S. 1972) (forum clauses are prima facie valid in international contracts)
- Durdahl v. Nat'l Safety Assocs., Inc., 988 P.2d 525 (Wyo. 1999) (enforceability depends on freedom of contract and predictability)
- TAAG Linhas Aereas de Angola v. Transamerica Airlines, Inc., 915 F.2d 1351 (9th Cir. 1990) (nonparty beneficiary related to contract may be bound)
- Ly v. Dryclean U.S.A. of California, 11 Cal.App.4th 1490 (Cal. App. 1992) (non-signatories bound when closely related to contract)
- Frietsch v. Refco, Inc., 56 F.3d 825 (7th Cir. 1995) (mutuality principle; non-signatories may be bound)
- Manetti-Farrow, Inc. v. Gucci America, Inc., 858 F.2d 509 (9th Cir. 1988) (closely related parties may invoke forum clause)
