BOMBARDIER CAPITAL INC., a Canadian corporation, Appellant,
v.
PROGRESSIVE MARKETING GROUP, INC., а Texas corporation, Appellee.
District Court of Appeal of Florida, Fourth District.
*133 Robert M. Brochin and Erik W. Scharf of Morgan, Lewis & Bockius LLP, Miami, for appellant.
Reed A. Bryan of Law Office of Reed A. Bryan, Fort Lauderdale, for appellee.
OWEN, WILLIAM C., Jr., Senior Judge.
This non-final appeal is from an order denying appellant's motion to dismiss for imрroper venue. The motion was based on an unambiguous mandatory forum selection clause, contained in the contract documents out of which this litigation arose, which required any judicial proceeding arising therefrom to be brought only in a court located in the City and State of New York. We reverse.
Appellee, Progressive Marketing Group Inc. ("Progressive"), a Texas corporation, purchased an aircraft in California. Financing of the purchase was provided by appellant, Bombardier Capital, Inc. ("BCI"), a Massachusetts corporation, with its principal place of business in Vermont, but having a servicing agent in New York. The relevant sales and financing documents out of which this dispute arose contained a provision requiring any judicial proceedings with respect thereto be brought exclusively in certain New York courts. Further, the documents provided that each of the parties accepted, generally and unconditionally, the exclusive jurisdiction of such courts and irrevocably waived any objection as to the venue of suсh suit. The forum selection clause concluded, in bold-faced capitalized text, with the following language:
ANY JUDICIAL PROCEEDING BY PURCHASER AGAINST SELLER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT SHALL BE BROUGHT ONLY IN A COURT LOCATED IN THE CITY AND STATE OF NEW YORK.
Some year and a half later, during which time BCI had relocated its loan servicing agent from New York to Floridа, a dispute arose between the parties over certain rights and obligations under the loan documents, culminating in appellee filing this suit in the Circuit Court of Broward County. Appellant moved to dismiss for improper venue, relying on the forum selection clause in the contract documents. The court found the forum selection clause mandatory. Nonetheless, it denied the *134 motion on the reasoning that the parties' selection of a New York forum contemplated that BCI would have its principal place of business in New York, and because BCI was no longer located in New York the forum selection clause was no longer appropriate.
Forum selection clauses are presumptively valid and "should be enforced in the absence of a showing that enforcement would be unreasonable or unjust." Manrique v. Fabbri,
The interpretation or construction of a contract is a matter of law and an apрellate court is not restricted from reaching a construction contrary to that of the trial court. Khosrow Maleki, P.A. v. M.A. Hajianpour, M.D., P.A.,
Nonetheless, appellee argues that the trial court's decision should be affirmed if it is correct for whatever reason. See Applegate v. Barnett Bank of Tallahassee,
FORUM SELECTION CLAUSE TAINTED BY FRAUD
Appellee's complaint alleged a count in fraud, but in essence it claimed *135 that appellant fraudulently misrepresented that the loan documents did not contain a prepayment penalty. When one "seeks to void a forum selection clаuse on the basis of fraud, it must be demonstrated that the clause itself is the product of fraud." Holder v. Burger King Corp.,
FORUM SELECTION CLAUSE THE PRODUCT OF OVERWHELMING BARGAINING POWER
Manrique states that trial courts may refuse to enforce forum selection provisions whiсh result from unequal bargaining power, but we think it clear that in using the term "unequal bargaining power" the supreme court intended it to be subsumed within the court's express holding, i.e., that forum selection clauses should be enforced in the absence of a showing that enforcement would be "unreasonable or unjust." Appellee's complaint does not allege that the contract was created involuntarily or that the parties did not stand on equal footing. Facts developed for the record show that while BCI prepared the contract documents without input from appellee, the latter is a consulting firm conducting business all over North Americа, that it engaged in negotiations for the aircraft, and that prior to the dispute which precipitated this action it was happy to do business with appellant. Our attention has not been called to any Florida case which the court has inquired into whether the parties were "equals" before enforcing a forum selection clause.[2] Suffice it to say, the trial court here did not find that enforcement would be unjust nor unreasonable.
Along this same line of argument, appellee describes the loan documents as "contracts of adhesion," but that in itself would not render the contracts void, the only effect being that any ambiguities in the contracts would be construed against the drafter. See Pasteur Health Plan, Inc. v. Salazar,
FORUM SELECTION CLAUSE AS SOLE BASIS UPON WHICH TO BASE JURISDICTION
In support of its argument on this "exception" to the enforcement of forum selection clauses, appellee relies on McRae v. J.D./M.D., Inc.,
Finally, appellee argues that Kinney System, Inc., v. Continental Ins. Co.,
The law as established in Manrique is clearthe trial court must honor a mandatory forum selection clause in a contraсt in the absence of a showing that the clause is unreasonable or unjust. Manrique,
REVERSED.
FARMER and STEVENSON, JJ., concur.
NOTES
Notes
[1] In the Manrique case, the supreme court made clear that the test of unreasonableness is not mere inconvenience or additional expense, but that the party seeking to escape his сontract must show that trial in the contractual forum will be so gravely difficult and inconvenient that he will for all practical purposes be deprived of his day in court. Manrique,
[2] In fact, some of the more recently reported cases upholding the validity and enforcement of such clauses, while not involving that specific issue, contain facts from which it might be inferred that the party which successfully sought enforcement of the clause was one with overwhelming bargaining power. See, e.g., Am. Online, Inc., v. Booker,
[3] Florida's personal jurisdiction over the parties is not an issue here, as both have recognized.
