930 F. Supp. 2d 261
D. Mass.2013Background
- OsComp and Bakken entered two purchase order contracts to supply compressors and related services for Bakken's North Dakota Williston Basin project.
- OsComp filed suit in Middlesex Superior Court; Bakken removed to federal court based on diversity.
- Contracts include a forum/venue clause: Bakken agrees to venue in Middlesex County, MA.
- OsComp alleges damages for breach of contract, 93A, equipment return, and confidentiality; seeks injunctive relief.
- Bakken filed a Texas state-court suit against OsComp for related claims; OsComp moved to remand; Bakken moved to transfer to Texas under 28 U.S.C. § 1404(a).
- Court holds forum clause does not waive removal and denies remand; transfers analysis favors keeping suit in Massachusetts and denies transfer to Texas.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the forum selection clause waived Bakken's removal right | OsComp: clause mandates Middlesex venue, implying waiver of removal | Bakken: clause is permissive, not a waiver of removal | No waiver; clause is permissive, not exclusive; removal permitted. |
| Whether § 1404(a) transfer to Texas is appropriate | OsComp: Massachusetts forum weighs in; transfer not justified | Bakken: Texas forum convenient; forum clause favors Texas | Transfer denied; Massachusetts forum remains proper and convenient. |
Key Cases Cited
- M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (U.S. 1972) (forum selection clauses enforceable unless unreasonable)
- Autoridad de Energia Electrica de P.R. v. Ericsson Inc., 201 F.3d 15 (1st Cir. 2000) (waiver question depends on contract language; implicit standard varies by circuit)
- Rivera v. Centro Medico de Turabo, Inc., 575 F.3d 10 (1st Cir. 2009) (permissive vs mandatory forum selection clause analysis)
- Snapper, Inc. v. Redan, 171 F.3d 1249 (11th Cir. 1999) (contract language may waive removal under ordinary contract principles)
- Global Satellite Commc’n Co. v. Starmill U.K. Ltd., 378 F.3d 1269 (11th Cir. 2004) (courtson the relevance of forum clauses and removal rights)