Liles v. Ginn-La West End, Ltd.
2011 U.S. App. LEXIS 1777
| 11th Cir. | 2011Background
- Plaintiffs bought undeveloped Bahamas land from Ginn-La West End, a Bahamian company with US ties.
- Each contract includes a forum-selection clause mandating Bahamas as exclusive venue and Bahamian governing law.
- Plaintiffs seek ILSA-based rescission and damages, plus common-law remedies for disclosure failures.
- District court dismissed under Rule 12(b)(3) for improper venue, relying on the forum clause.
- Ginn-La and related defendants move to dismiss all claims; venue issue is dispositive, with ILSA rights acknowledged.
- Contracts also incorporate HUD-provided ILSA disclosures and property reports to plaintiffs.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Bahamian forum clause is enforceable under Bremen | Liles contends clause is unreasonable/public-policy violation | Ginn argues Bremen factors support enforceability | Enforceable; Bremen factors not satisfied to invalidate |
| Scope of forum clause applicability to ILSA claims | Clauses should not bar US ILSA rights | Clauses cover disputes arising from contracts and related instruments | Clauses apply to ILSA claims and bind signatories and related defendants under equitable estoppel theory |
| Effect of ILSA anti-waiver/public policy on enforceability | ILSA anti-waiver/public policy prevents waiving venue | Lipcon allows exceptions in international deals; venue may be chosen | Public policy not violated; Lipcon respected; enforceable forum clause |
| Non-signatories invoking forum clause | Non-signatories (Ginn entities) cannot invoke clause | Equitable estoppel/agency allows invocation by non-signatories | Equitable estoppel allows non-signatories to invoke Bahamian forum clause |
Key Cases Cited
- Lipcon v. Underwriters at Lloyd's, London, 148 F.3d 1285 (11th Cir. 1998) (forum-clause enforceability in international agreements; anti-waiver considerations)
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (1983) (forum-selection clauses judged by Bremen factors; orderliness/comity concerns)
- Scherk v. Alberto-Culver Co., 417 U.S. 506 (1974) (forum dispute in international commerce; contract interpretation)
- Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (1991) (negotiated forum-selection clauses; enforceability standard in consumer contexts)
- Cooper v. Meridian Yachts, Ltd., 575 F.3d 1151 (11th Cir. 2009) (non-signatories may invoke forum clauses in certain circumstances)
- MS. Dealer Serv. Corp. v. Franklin, 177 F.3d 942 (11th Cir. 1999) (equitable estoppel in applying arbitration/forum clauses)