Mann Utilities, Inc. v. WLM Contracting, Inc.
5:24-cv-00267
| M.D. Fla. | Nov 22, 2024Background
- Mann Utilities, a Florida corporation, sued WLM Contracting (Georgia corp.) and Great Midwest Insurance (Texas corp.) in the Middle District of Florida.
- The suit centers on a contract containing a mandatory forum selection clause requiring any litigation to occur in Georgia.
- Defendants moved to transfer venue to the Northern District of Georgia, citing the forum selection clause; Mann opposed, invoking a Florida statute and arguing public policy and inconvenience.
- The controlling issue was whether the forum selection clause is enforceable under federal law, despite Florida's public policy to the contrary.
- Mann also briefly objected to alleged procedural non-compliance by Defendants, but the court dismissed this as non-dispositive.
- The court granted the transfer motion and ordered the case moved to federal court in Georgia.
Issues
| Issue | Mann's Argument | WLM's Argument | Held |
|---|---|---|---|
| Enforceability of forum selection clause | Clause is invalid under FL law and contrary to FL public policy | Clause is valid and binding; federal law controls | Clause is enforceable under federal law |
| Public policy exception | Florida statute makes such clauses void for local projects | Federal law preempts; FL public policy does not apply | No FL policy override; federal law controls |
| Inconvenience/unfairness | Litigating in GA is inconvenient & more expensive (local counsel, travel, burden) | Inconvenience/cost not sufficient; both parties agreed to clause | Not unfair or unreasonable obstacles |
| Court congestion | Slightly longer time to trial in GA district should weigh against transfer | Difference is minimal and not outcome-determinative | Not material; does not bar transfer |
Key Cases Cited
- Stewart Org., Inc. v. Ricoh Corp., 487 U.S. 22 (federal law governs enforcement of forum selection clauses in diversity cases)
- P & S Bus. Mach., Inc. v. Canon USA, Inc., 331 F.3d 804 (forum selection clauses are presumptively valid and enforced unless unfair/unreasonable)
- Atlantic Marine Constr. Co. v. U.S. Dist. Ct. for the W. Dist. of Texas, 571 U.S. 49 (forum selection clauses should be given controlling weight barring exceptional circumstances)
- Aquate II LLC v. Myers, 100 F.4th 1316 (enumerates factors for when forum selection clauses may be invalidated as unfair or unreasonable)