517 F. App'x 670
11th Cir.2013Background
- Kostelacs sue Allianz Global for breach of contract in Florida after Allianz denied coverage for a Florida crash involving Remos GX manufactured by Remos Germany and distributed by Remos USA.
- Remos Germany and Remos USA are insureds under Allianz Global’s aviation policy; policy formed in Germany, in German.
- Consent judgment: Remos admitted liability and Damages valued at $2,950,000; Kostelacs assign all policy rights to themselves.
- Kostelacs, as assignees for Remos, sue in Florida state court; Allianz Global removes to SD Florida and moves to dismiss.
- District Court dismisses for forum non conveniens without addressing the forum-selection clause; court weighs private/public interests and Germany as alternate forum.
- On appeal, court AFFIRMS the dismissal, but on Bremen forum-selection grounds rather than the district court’s private-interest analysis.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether forum non conveniens dismissal was proper | Kostelacs claim deference to home forum. | Allianz contends balance favors Germany. | Affirmed on Bremen grounds; district court’s FNC dismissal not controlling. |
| Whether forum-selection clause is enforceable | Kostelacs argue clause should not bind assignees. | Clause is valid; Bremen test applied. | Enforceable; assignees bound to German forum. |
| Whether ambiguity renders clause inapplicable | Ambiguity limits scope to covered claims. | Clause should apply to insurable claim. | Clause unambiguous; applies to suit. |
Key Cases Cited
- Lipcon v. Underwriters at Lloyd's, London, 148 F.3d 1285 (11th Cir. 1998) (forum-selection clause enforceable unless strong showing of unreasonableness)
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (U.S. 1972) (test for enforcing international forum-selection clauses)
- Piper Aircraft Co. v. Reyno, 454 U.S. 235 (U.S. 1981) (strong presumption in favor of plaintiff's home forum; Bremen factors apply to public/private interests)
- Wilson v. Island Seas Invs., Ltd., 590 F.3d 1264 (11th Cir. 2009) (abuse-of-discretion review for forum non conveniens)
- SME Racks, Inc. v. Sistemas Mecanicos Para Electronica, S.A., 382 F.3d 1097 (11th Cir. 2004) (strong presumption in favor of plaintiffs' forum when American citizens)