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case
1. Case Name, Citation, and Court
Carnival Cruise Lines Inc. v. Shute
499 U.S. 585, 111 S.Ct. 1522, 113 L.Ed.2d 622 (1991)
United States Supreme Court
2. Summary of the Key Facts
· The Shutes purchased, in Washington from a travel agent, passage for a seven-day cruise on the Tropicale, a cruise ship operated by the Carnival Cruise Lines Inc.
· Each ticket contained a forum-selection clause that designated the state of Florida as the forum for any lawsuits within the contract terms.
· Mrs. Shute slipped and fell from a deck mat during a guided tour of the ship’s galley and was injured.
· Upon return to Washington, she sued for negligence against Carnival Cruise Lines Inc. in the U.S. district court of Washington seeking damages.
· Carnival filed motion that the suit could be brought only in a court in the state of Florida and the appeals court reversed it stating that Mrs. Shute could sue carnival in Washington. Carnival appealed to the U.S. Supreme Court.
3. The Issue
Does one need to prove negligence and suffering in another state to be awarded damages due to a forum selection clause?
4. The Holding
Yes. The Supreme Court reversed the decision of the court of appeals
5. Summary of the Courts Reasoning
On basis of forum-selection clause in a form ticket contract is never enforceable simply because it is not the subject of bargaining. The U.S. Supreme Court based their opinion on the facts that a cruise line carries many passengers from various locals and it is very likely that a mishap may occur. In light of this, the cruise line may suffer litigation in many different forums. As well to the discounted rates, they already offer to passengers of various locals to enjoy their right to litigate in the forum of their choice.
6. Opinion
I believe that the court’s ruling is appropriate for this situation because if the courts of many other states filed litigation towards the cruise line they would spend a lot of time and money traveling their lawyers from state to state litigating. If the damages were severe enough one would litigate in the provided state court to seek what they deserve.