Enrique Martinez v. Affordable Seating, Inc.
13-16-00103-CV
| Tex. App. | Oct 20, 2016Background
- Martinez ordered and paid for 110 wooden chairs from Affordable Seating via its website and signed a printed invoice that stated: "I have read all the information related to my transactions with Affordable Seating, LLC and agree to the policy stated on affordableseating.net."
- After delivery, Martinez complained the chairs were wrong color/design and damaged; Affordable refused refund/remedy.
- Martinez sued in Hidalgo County, Texas. Affordable moved to dismiss based on a forum-selection clause in the website policy (Illinois courts only), which the invoice incorporated by reference.
- Affordable submitted an affidavit authenticating the invoice and website policy and explaining the clause was critical to its business.
- The trial court dismissed without prejudice, permitting refiling in the agreed forum; Martinez appealed challenging incorporation and public-policy grounds.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the forum-selection clause in the website policy is part of the contract | Martinez: invoice only contained a small reference to the website; no meeting of minds because he did not know the website terms | Affordable: invoice expressly referred to and incorporated the website policy; signing the invoice binds Martinez to those terms | Court: Clause was incorporated by reference; signing the invoice charged Martinez with notice and binding acceptance |
| Whether the forum-selection clause is unenforceable on public-policy or unfairness grounds | Martinez: enforcement of fine-print/boilerplate terms (on a separate website) would be manifestly unjust and violate public policy | Affordable: clause is presumptively valid and necessary for its business; challenger bears heavy burden to show unenforceability | Court: Martinez failed to meet heavy burden; clause presumptively valid and enforceable |
| Whether dismissal was an abuse of discretion | Martinez: enforcement deprives him of his chosen forum and was improper | Affordable: dismissal allows suit to be brought in the contractual forum; dismissal without prejudice appropriate | Court: No abuse of discretion; dismissal to permit refiling in agreed forum was proper |
Key Cases Cited
- Owen v. Hendricks, 433 S.W.2d 164 (Texas 1968) (unsigned document may be incorporated by reference in a signed contract)
- In re C & H News Co., 133 S.W.3d 642 (Tex. App.—Corpus Christi 2003) (signed document must plainly refer to incorporated document)
- In re Laibe Corp., 307 S.W.3d 314 (Tex. 2010) (forum-selection clauses presumptively valid; challenger bears heavy burden)
- In re Int’l Profit Assocs., Inc., 274 S.W.3d 672 (Tex. 2009) (scope of heavy burden to avoid enforcement of forum-selection clauses)
- In re 24R, Inc., 324 S.W.3d 564 (Tex. 2010) (documents incorporated by reference become part of the contract)
- In re Bank One, N.A., 216 S.W.3d 825 (Tex. 2007) (same)
- D. Wilson Constr. Co. v. McAllen Indep. Sch. Dist., 848 S.W.2d 226 (Tex. App.—Corpus Christi 1992) (party who signs contract is charged with notice of its contents)
- Plains Expl. & Prod. Co. v. Torch Energy Advisors Inc., 473 S.W.3d 296 (Tex. 2015) (primary goal of contract interpretation is to determine parties’ intent as expressed in the contract)
