TLE Marketing Corporation v. WBM, LLC DO NOT DOCKET. CASE HAS BEEN TRANSFERRED OUT.
0:17-cv-03812
D. MinnesotaNov 16, 2017Background
- TLE Marketing (sales rep) and WBM (manufacturer/importer) had a long-term sales representative agreement with a forum-selection clause designating New Jersey courts.
- WBM terminated the contract in June 2017; TLE filed suit in Minnesota state court asserting breach of contract and claims under Minn. Stat. § 325E.37 and § 181.145 for unpaid commissions and wrongful termination.
- WBM answered, counterclaimed, and moved to transfer the case to the U.S. District Court for the District of New Jersey under 28 U.S.C. § 1404(a), relying on the contract’s forum-selection clause.
- TLE opposed transfer, arguing the forum-selection clause is unenforceable as contrary to Minnesota public policy embodied in Minn. Stat. § 325E.37 (which forbids choice-of-law clauses and waivers of the statute).
- The Court applied the Atlantic Marine framework: when a valid forum-selection clause exists, transfer is ordinarily required and plaintiff’s forum choice and private-interest factors are given no weight; only public-interest factors may be considered.
- The Court found TLE failed to show the “extraordinary circumstances” needed to overcome the forum-selection clause and granted transfer to the District of New Jersey.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the forum-selection clause is unenforceable as against Minnesota public policy | Minn. Stat. § 325E.37 protects sales reps and prohibits contractual provisions that circumvent the statute; thus the clause is void | The clause is valid and enforceable; Atlantic Marine requires transfer absent extraordinary public-interest factors | Clause enforceable; transfer ordered under § 1404(a) to New Jersey |
| Whether § 325E.37’s anti-waiver language invalidates forum/venue clauses | Statute’s ban on choice-of-law and waivers reflects a policy protecting sales reps’ forum rights | Statute addresses choice of law and waiver of the statute, not venue; no clear statutory bar to forum clauses | § 325E.37 does not show Minnesota public policy barring forum-selection clauses |
| Whether out-of-state authorities interpreting similar statutes compel a different result | Reliance on Illinois, New Jersey, Wisconsin decisions that refused to enforce forum clauses under similar statutes | Those decisions are not binding, predate Atlantic Marine, and have been questioned or rejected later | Court declined to follow nonbinding out-of-state precedent; Atlantic Marine controls |
| Burden to overcome a valid forum-selection clause | TLE must show extraordinary public-interest circumstances to deny transfer | WBM says plaintiff cannot meet the heavy burden; only public-interest factors permitted and rarely dispositive | TLE failed to meet heavy burden; transfer granted |
Key Cases Cited
- Atl. Marine Constr. Co. v. U.S. Dist. Court, 134 S. Ct. 568 (2013) (forum-selection clauses ordinarily control; plaintiff’s forum choice and private-interest factors largely irrelevant)
- M.B. Rests., Inc. v. CKE Rests., Inc., 183 F.3d 750 (8th Cir. 1999) (forum-selection clauses may be invalid for reasons like fraud or overreaching)
- Rogovsky Enter., Inc. v. MasterBrand Cabinets, Inc., 88 F. Supp. 3d 1034 (D. Minn. 2015) (court must confirm venue is proper before transferring a case)
