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Laibe Corp. v. General Pump & Well, Inc.
317 Ga. App. 827
Ga. Ct. App.
2012
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Background

  • General is a Georgia corporation; Laibe is an Indiana corporation.
  • General sued in Georgia for breach of implied warranties of merchantability and fitness for a particular purpose related to a March 2005 water-well drilling unit.
  • Laibe removed to federal court, then case was remanded to state court.
  • Laibe moved to dismiss under OCGA 9-11-12(b)(2), (3), (6) asserting contract terms barred claims, including forum-selection, warranty disclaimer, and limitations.
  • Trial court denied the motion; Laibe appealed interlocutorily; the appellate court vacated and remanded to dismiss based on contract and forum-selection analysis.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the sales contract applies to General’s warranty claims General: contract is unrelated to claims; cannot be used. Laibe: contract governs and disclaims warranties and governs venue. Contract applicable; warrants arising from contract.
Whether the forum-selection clause is enforceable General: clause unenforceable; forum not proper. Laibe: clause is enforceable absent fraud or overreach. Forum-selection clause enforceable; trial court erred in denying dismissal.

Key Cases Cited

  • Bookholt v. General Motors Corp., 215 Ga. 391 ((1959)) (implied warranties arise from contract; warranties can be disclaimed by agreement)
  • Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 ((1991)) (forum-selection clauses should be enforced absent compelling reasons)
  • M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 ((1972)) (freely negotiated agreement should be given full effect)
  • Bennett Motor Express, Inc., 308 Ga. App. 69 ((2011)) (forum-selection clauses prima facie valid; enforceability turns on evidence of bargaining power, notice)
  • Ocwen Orlando Holdings Corp. v. Harvard Prop. Trust, LLC, 526 F.3d 1379 ((11th Cir. 2008)) (permissive vs. mandatory forum clauses; interpretive guidance)
  • Int’l Greetings USA, Inc. v. Cammack, 306 Ga. App. 786 ((2010)) (forum-selection clause enforceability in Georgia)
Read the full case

Case Details

Case Name: Laibe Corp. v. General Pump & Well, Inc.
Court Name: Court of Appeals of Georgia
Date Published: Oct 9, 2012
Citation: 317 Ga. App. 827
Docket Number: A12A1002
Court Abbreviation: Ga. Ct. App.