394 S.W.3d 478
Mo. Ct. App.2013Background
- Hope’s Windows is a New York corporation; McClain resides in Missouri.
- Contract signed March 2007 for Missouri project, with New York choice-of-law and forum-selection clauses
- McClain mailed $66,195 down payment to Hope’s Windows in New York; work performed in Missouri
- New York sued McClain in Chautauqua County; default judgment entered March 29, 2010 against McClain
- Hope’s Windows registered the New York judgment in Missouri; McClain moved to vacate, circuit court denied registration and granted vacatur, appeal followed
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Effect of forum-selection clause on jurisdiction in registration | McClain’s signature/participation intended NY forum | McClain not party to contract; no NY jurisdiction | Forum-selection clause controls; NY court had jurisdiction |
| Treatment of forum-selection vs choice-of-law clause | Forum-selection clause enforceable; NY jurisdiction valid | Only a choice-of-law clause considered; no jurisdiction | Enforceable forum-selection clause mandates NY jurisdiction |
| Burden of proof in registration context | Presumption of validity favors NY judgment; Hope’s Windows bears burden | McClain bears burden to show lack of jurisdiction | Burden on challenger; forum-clause enforcement defeats need to show extra-jurisdictional contacts |
| Necessity of New York long-arm/due process analysis when clause exists | Long-arm/due process analysis required | Clause renders such analysis unnecessary | When a valid forum-selection clause exists, analyze its effect first; otherwise proceeds accordingly |
| Role of contract’s party status in enabling jurisdiction | McClain signed contract; thus NY jurisdiction | McClain contends non-party status precludes jurisdiction | McClain’s forum-access clause confirms jurisdiction despite party-status dispute |
Key Cases Cited
- Peoples Bank v. Frazee, 318 S.W.3d 121 (Mo. banc 2010) (burden on challenger in registration context; deference to circuit findings)
- Phillips v. Fallen, 6 S.W.3d 862 (Mo. banc 1999) (prescribed burdens and standards in registration matters)
- U.S. Bank Nat’l Assoc. v. Abies & Hall Builders, 582 F.Supp.2d 605 (S.D.N.Y.2008) (forum-selection clause may negate jurisdiction analysis when enforceable)
- Bouquette v. Suggs, 928 S.W.2d 412 (Mo.App. E.D.1996) (distinguishes choice-of-law vs forum-selection clauses)
- Koninklijke Philips Elecs. v. Digital Works, Inc., 358 F.Supp.2d 328 (S.D.N.Y.2005) (forum-selection clause enforces venue to avoid jurisdiction disputes)
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (1980) (prima facie validity of forum-selection clause; enforceability standards)
- Nat’l Union FireIns. Co. of Pittsburgh, Pa. v. Worley, 257 A.D.2d 228 (1999) (forum-selection clause effect on jurisdiction in NY)