594 F. App'x 820
5th Cir.2014Background
- Waste Management sued Jefferson Parish in federal court for breach of contract; the contract contained a forum-selection clause designating Jefferson Parish state court and waiving objections to jurisdiction and venue.
- Jefferson Parish moved to dismiss on forum non conveniens grounds, arguing Atlantic Marine requires enforcement of forum-selection clauses absent exceptional circumstances.
- The district court denied the motion, reasoning Atlantic Marine addresses mandatory forum-selection clauses and does not apply to permissive clauses like the one here.
- The district court certified the question for interlocutory appeal under 28 U.S.C. §1292(b); Jefferson Parish sought permission to appeal while assuming the clause was permissive.
- The court of appeals considered whether substantial grounds for difference of opinion existed about Atlantic Marine’s applicability to permissive forum-selection clauses.
- The court declined to permit interlocutory appeal, noting (1) the Supreme Court’s Atlantic Marine analyzed a mandatory clause, (2) longstanding Fifth Circuit precedent recognizes a mandatory/permissive distinction, and (3) most post-Atlantic Marine district courts reject applying Atlantic Marine to permissive clauses.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Atlantic Marine’s framework applies to permissive forum-selection clauses | Atlantic Marine should govern and require enforcement of the clause to dismiss or transfer | Atlantic Marine applies only to mandatory clauses; permissive clauses remain non-binding for dismissal/transfer | Denied interlocutory review; court declined to expand Atlantic Marine to permissive clauses and found no substantial ground for difference of opinion |
Key Cases Cited
- Atlantic Marine Constr. Co. v. U.S. Dist. Court, 134 S. Ct. 568 (2013) (Supreme Court decision setting framework for enforcing forum-selection clauses—analyzed a mandatory clause)
- GDG Acquisitions, LLC v. Gov’t of Belize, 749 F.3d 1024 (11th Cir. 2014) (remanded to determine whether clause was mandatory before applying Atlantic Marine)
- City of New Orleans v. Mun. Admin. Servs., Inc., 376 F.3d 501 (5th Cir. 2004) (recognizes distinction between mandatory and permissive forum-selection clauses)
- Caldas & Sons, Inc. v. Willingham, 17 F.3d 123 (5th Cir. 1994) (same)