Melissa Wylie v. Island Hotel Company Limited
706 F. App'x 577
| 11th Cir. | 2017Background
- While vacationing at the Atlantis resort in the Bahamas, Mrs. Wylie slipped and injured herself during the Sea Squirts Experience.
- Attendance required signing a release containing a forum-selection clause designating the Bahamas as the exclusive forum; Mr. Wylie signed the release and listed his wife and daughter as members of his group.
- Mrs. Wylie sued Island Hotel Co. Ltd., Atlantis Holdings (Bahamas) Ltd., and Bref Bahamas Ltd. in the Southern District of Florida.
- Defendants moved to dismiss under forum non conveniens, invoking the forum-selection clause; the district court granted dismissal.
- On appeal, Mrs. Wylie argued she never agreed to the release (she did not sign) so the forum-selection clause cannot bind her; the district court treated the clause as presumptively valid and enforceable.
- The Eleventh Circuit reversed and remanded for the district court to consider whether state contract-formation principles govern whether a non-signatory like Mrs. Wylie is bound before applying federal forum-selection enforceability rules.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Mrs. Wylie is bound by a forum-selection clause in a release she did not sign | Wylie: She never entered the contract; husband signed for family, so the clause cannot bind her | Defendants: The release (and clause) is presumptively valid and Mr. Wylie’s signature was foreseeable to bind family members | Reversed and remanded: district court must address whether contract-formation rules (state law) determine if a non-signatory is bound before applying federal forum-selection enforceability principles |
| Which substantive law governs validity vs enforceability of a forum-selection clause in diversity cases | Wylie: Formation/validity is a state-law issue (contract formation) distinct from federal enforceability | Defendants: District court applied federal presumption of enforceability without resolving formation under state law | Court: Unresolved nationally; district court should consider whether validity (formation) is distinct and governed by state law before applying Atlantic Marine enforcement framework |
| Proper standard for evaluating a forum-selection clause’s applicability to non-signatories | Wylie: Use state-law principles on third-party binding/agency/ratification | Defendants: Apply federal forum non conveniens analysis treating clause as presumptively enforceable | Court: District court failed to analyze these nuances; remand for reasoned consideration including state-law formation questions |
| Whether the district court abused discretion in dismissing on forum non conveniens without resolving formation issues | Wylie: Dismissal premature without ruling on whether she agreed to the release | Defendants: Dismissal proper given presumptive validity of clause | Court: District court abused discretion by not addressing potentially dispositive contract-formation questions; reversal and remand required |
Key Cases Cited
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (1972) (established enforceability principles for forum-selection clauses)
- Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (1991) (refined reasonableness analysis for forum-selection clauses)
- Atl. Marine Const. Co. v. U.S. Dist. Court for W. Dist. of Texas, 134 S. Ct. 568 (2013) (forum-selection clauses control forum non conveniens analysis; presupposed a valid clause)
- Krenkel v. Kerzner Int’l Hotels Ltd., 579 F.3d 1279 (11th Cir. 2009) (applied presumption of enforceability and Bremen/Carnival framework)
- Lipcon v. Underwriters at Lloyd’s, London, 148 F.3d 1285 (11th Cir. 1998) (considered foreseeability that one signature may bind others under forum clauses)
- Barnett v. DynCorp Int’l, L.L.C., 831 F.3d 296 (5th Cir. 2016) (recognized circuit split/uncertainty whether validity is distinct from enforceability in diversity cases)
- Bazemore v. Jefferson Capital Sys., LLC, 827 F.3d 1325 (11th Cir. 2016) (noting state law governs contract formation in diversity cases)
- Aldana v. Del Monte Fresh Produce N.A., 578 F.3d 1283 (11th Cir. 2009) (standard of review for forum non conveniens dismissal)
- Clay v. Equifax, Inc., 762 F.2d 952 (11th Cir. 1985) (appellate remand appropriate where district court did not adequately develop record)