James Feggestad v. Kerzner International Bahamas Limited
2016 U.S. App. LEXIS 22105
| 11th Cir. | 2016Background
- James and Karen Feggestad booked a stay at the Atlantis Resort (Bahamas) and received an email reservation confirmation containing a hyperlink to the resort’s Terms and Conditions, which included a Bahamian forum selection clause.
- At check-in Mr. Feggestad signed a registration card whose back contained an "Acknowledgement, Agreement and Release" stating Bahamian law and the Supreme Court of The Bahamas as the exclusive venue.
- Several days later Mr. Feggestad slipped on a wet sidewalk at the resort and was injured; the Feggestads sued in the U.S. District Court for the Southern District of Florida alleging negligence.
- Kerzner moved to dismiss based on the forum selection clause (and forum non conveniens); the district court granted dismissal on the basis the clause was valid and enforceable.
- On appeal the Feggestads argued (1) they were misled by front-desk staff about the purpose of the signature and (2) they were not meaningfully notified of the clause because it was only in a hyperlink in the confirmation email; they also raised physical-characteristics objections for the first time on appeal.
- The Eleventh Circuit affirmed, holding the clause was reasonably communicated (by email hyperlink and signed registration card), not procured by fraud or overreaching, and therefore enforceable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether forum-selection clause was procured by fraud/overreaching | Feggestad: front-desk misrepresented purpose of signature and hurried check-in prevented meaningful review | Kerzner: clause was disclosed twice (email hyperlink and registration card); no evidence staff prevented reading | Held: No fraud/overreaching; signing was binding and clause enforceable |
| Whether forum-selection clause was reasonably communicated | Feggestad: hyperlink in email and terms were not meaningfully brought to their attention; they never accessed link | Kerzner: email confirmation with hyperlink and the written registration form provided sufficient notice and opportunity to reject | Held: Reasonable communicativeness satisfied; clause valid and dismissal affirmed |
Key Cases Cited
- Krenkel v. Kerzner Int’l Hotels Ltd., 579 F.3d 1279 (11th Cir. 2009) (forum-selection clauses presumptively valid; test for reasonable communicativeness)
- Lipcon v. Underwriters at Lloyd’s, London, 148 F.3d 1285 (11th Cir. 1998) (grounds to invalidate forum-selection clauses)
- Aldana v. Del Monte Fresh Produce N.A., 578 F.3d 1283 (11th Cir. 2009) (standard of review for forum non conveniens)
- Piper Aircraft Co. v. Reyno, 454 U.S. 235 (1981) (deference to district court’s forum non conveniens balancing)
- Starkey v. G Adventures, Inc., 796 F.3d 193 (2d Cir. 2015) (email hyperlink to terms can reasonably communicate forum-selection clause)
- Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (1991) (enforceability of forum clauses in consumer contracts)
- Access Now, Inc. v. Sw. Airlines Co., 385 F.3d 1324 (11th Cir. 2004) (issues not raised below are forfeited on appeal)
