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Foreign Forum Selection Clause Enforced in New York’s Southern District

Since the U.S. Supreme Court’s decision in Vimar Seguros y Reaseguros, S.A. v. M/V SKY REEFER, forum selection clauses have been widely recognized and enforced by courts across the United States. Even so, cargo interests continue to test the enforceability of such clauses as found in an ocean carrier’s bill of lading.  However, when the forum selection clause in question is unambiguous and contains language making a particular forum exclusive as to all others, the clause is considered exclusive, mandatory, and must be enforced as a matter of law.

After submitting motion papers and oral argument before the Honorable Judge Sand, U.S. District Judge for the Southern District of New York, Timothy Semenoro, acting on behalf of ocean carrier Hapag-Lloyd Container Linie GmbH, obtained a favorable decision dismissing all cargo-based claims against Hapag-Lloyd on the basis of the foreign forum selection clause in the applicable bills of lading.  In so holding, the court confirmed that forum selection clauses that name the courts of Hamburg, Germany, as the proper forum, and to the exclusion of all other courts, are to be enforced; and the fact that cargo interests may subsequently be time barred in the named foreign jurisdiction is not a proper basis for invalidating a forum selection clause.
 
Read a copy of Judge Sand’s Memorandum and Order.