Document: 499 U.S. 585 111 S.Ct. 1522 113 L.Ed.2d 622 CARNIVAL CRUISE LINES, INC., Petitionerv.Eulala SHUTE, et vir. No. 89-1647. Argued Jan. 15, 1991. Decided April 17, Syllabus After the respondents Shute, a Washington State couple, purchased passage on ship owned by petitioner, Florida-based cruise line, petitioner sent them tickets containing clause designating courts in Florida as agreed-upon fora for resolution of disputes. The Shutes boarded Los Angeles, and, while international waters off Mexican coast, Mrs. Shute suffered injuries when she slipped deck mat. filed suit Federal District Court, which granted summary judgment petitioner. Court Appeals reversed, holding, inter alia, that forum-selection should not be enforced under Bremen v. Zapata Off-Shore Co., 407 1, 92 1907, 32 513 because it was "freely bargained for," and its enforcement would operate to deprive their day court light evidence indicating they were physically financially incapable pursuing litigation Florida. Held: erred refusing enforce clause. Pp. 590-597. (a) Court's statement freely negotiated clause, such one there at issue, given full effect, U.S., 12-13, S.Ct., 1914-1915, does support Appeals' determination nonnegotiated forum contract is never enforceable simply subject bargaining. Whereas entirely reasonable have expected parties with care selecting disputes arising from complicated agreement, unreasonable assume passenger or could negotiate terms routine commercial ticket form. Nevertheless, including form well may permissible several reasons. Because unlikely mishap line different fora, has special interest limiting fora. Moreover, establishing ex ante dispute salutary effect dispelling confusion where suits brought defended, thereby sparing litigants time expense conserving judicial resources. Furthermore, likely passengers purchasing like here issue benefit reduced fares reflecting savings enjoys sued. 590-594. (b) conclusion are this justified "the serious inconvenience contractual both might carry greater weight determining reasonableness clause." Id., 1917. That made context hypothetical "agreement between two Americans resolve essentially local remote alien forum." Ibid. Here, contrast, forum, nor—given location Shute's accident—is an inherently more suited than In these distinctions, do claim lack notice satisfied "heavy burden proof," ibid., required set aside grounds inconvenience. 594-595. (c) Although clauses contained contracts scrutiny fundamental fairness, no indication selected discourage legitimate claims obtained Shutes' accession fraud overreaching. P. 595. (d) By plain language, violate 46 U.S.C.App. § 183c, which, prohibits vessel owner inserting any provision depriving claimant trial "by competent jurisdiction" loss life personal injury resulting negligence. 1528-1529. 897 F.2d 377 (CA9 1990), reversed. BLACKMUN, J., delivered opinion REHNQUIST, C.J., WHITE, O'CONNOR, SCALIA, KENNEDY, SOUTER, JJ., joined. STEVENS, dissenting opinion, MARSHALL, joined, post, p. ----. Richard K. Willard, Washington, D.C., Gregory J. Wall, Seattle, Wash., respondents. Justice BLACKMUN Court. 1 admiralty case we primarily consider whether United States Ninth Circuit correctly refused issued Carnival Cruise Lines, Inc., Eulala Russel Shute. 2 * Shutes, through Arlington, travel agent, 7-day petitioner's ship, Tropicale. Respondents paid fare agent who forwarded payment headquarters Miami, Fla. Petitioner then prepared Washington. face each ticket, left-hand lower corner, admonition: 3 "SUBJECT TO CONDITIONS OF CONTRACT ON LAST PAGES IMPORTANT! PLEASE READ CONTRACT—ON 2, 3" App. 15. 4 following appeared "contract page 1" ticket: 5 "TERMS AND PASSAGE TICKET 6 . 7 "3. acceptance person persons named hereon shall deemed agreement all conditions Passage Contract Ticket. 8 9 "8. It agreed Carrier matters whatsoever under, connection incident litigated, if all, before located Florida, U.S.A., exclusion Courts other state country." 16. 10 last quoted paragraph issue. II 11 Tropicale Cal. sailed Puerto Vallarta, Mexico, returned Angeles. While respondent injured mat during guided tour ship's galley. against Western claiming had been caused negligence Lines employees. 4. 12 moved judgment, contending respondents' bring contended, alternatively, lacked jurisdiction over contacts insubstantial. motion, holding constitutionally insufficient exercise jurisdiction. See Pet. Cert. 60a. 13 Reasoning "but for" solicitation business taken injured, concluded sufficient justify 377, 385-386 1990).* 14 Turning acknowledged concerned enforceability must begin analysis (1972), held clauses, although "historically favored," "prima facie valid." 9-10, 1913. F.2d, 388. appellate "was for." 389. As "independent justification" noted record indicate Florida" contravene Bremen. 15 We certiorari address question correct hear tort 498 807-808, 39, 112 16 (1990). find dispositive question, need constitutional argument Ashwander TVA, 297 288, 347, 56 466, 483, 80 L.Ed. 688 (1936) (Brandeis, concurring) (" 'It habit decide questions nature unless absolutely necessary decision case,' " quoting Burton States, 196 283, 295, 25 243, 245, 49 482 (1905)). III noting boundaries our inquiry. First, admiralty, federal law governs scrutinize. Archawski Hanioti, 350 532, 533, 76 617, 619, 100 676 (1956); Moses Taylor, Wall. 411, 427, 18 397 (1867); Tr. Oral Arg. 36-37, 12, 47-48. Cf. Stewart Organization, Inc. Ricoh Corp., 487 22, 28-29, 108 2239, 2243-2244, 101 22 (1988). Second, entering passage. conceded provision. Brief 26 ("The contest incorporation provisions nor [sic ] selection reasonably communicated respondents, much three pages fine print can communicated" ). Additionally, evaluated assumption, "doubtful," knowledge 389, n. 11. 17 Within context, urge because, contrary teachings Bremen, product negotiation, effectively court. contend violates Limitation Vessel Owner's Liability Act, 183c. arguments turn. IV A. Both argue vigorously case, side purports ample position opinion's broad-ranging language. This seeming paradox derives large part key factual differences preclude automatic simple application Bremen's general principles facts here. 19 addressed corporations. An American corporation, Zapata, Unterweser, German towage Zapata's oceangoing drilling rig Louisiana point Adriatic Sea coast Italy. provided resolved London Justice. storm Gulf Mexico seriously damaged rig, ordered Unterweser's tow Tampa, Fla., nearest refuge. Thereafter, sued Unterweser Tampa. Citing dismiss. denied Fifth Circuit, sitting en banc rehearing, sharply divided vote, affirmed. re Complaint Reederei GmbH, 446 907 (1971). 20 vacated remanded, stating that, general, "a private unaffected fraud, undue influence, overweening bargaining power, involved here, effect." 1914-1915 (footnote omitted). further generalized "in present-day realities expanding trade conclude control absent strong showing aside." 1916. did define precisely circumstances make Instead, discussed number factors presumably, pertinent similar 21 respect, "strong vital [that] unrealistic think conduct negotiations, fixing monetary terms, consequences figuring prominently calculations." 14, 1915 Further, observed "dealing forum," stated even establishes conflicts, party [unfairness] bear heavy proof." applying present took note foregoing "reasonableness" rather automatically decided unenforceable unlike Alternatively, ruled opportunity litigate 23 "far transaction companies nations contemplating extremely costly piece equipment across Atlantic Ocean, Mediterranean final destination Sea." 13, 1915. These suggest apart negotiation regarding towing contract. 24 purely doubtless nearly identical every most lines. See, e.g., Hodes S.N.C. Achille Lauro ed Altri-Gestione, 858 905, 910 (CA3 1988), cert. dism'd, 490 1001, 109 1633, 104 149 (1989). us respondents—or passenger—would ordinary ticket. Common sense dictates kind will individual parity line. But ignoring crucial contexts respective executed, seems distorted somewhat evaluating refine account contracts. initial matter, adopt Including reasons: potentially suit. typically carries many locales, 1915, 15; Hodes, 913. about pretrial motions determine resources otherwise devoted deciding those motions. 33, 2249 (concurring opinion). Finally, stands reason purchase Northwestern Nat. Ins. Co. Donovan, 916 372, 378 (CA7 1990). also accept "[t]here Florida." defer findings fact. dismissing finding physical financial impediments conclusory reference provides basis validate place proper "remote fact accident occurred Mexico—is 27 bears emphasis fairness. means discouraging claims. Any suggestion bad-faith motive belied facts: principal cruises depart return ports. Similarly, therefore, presumably retained option rejecting impunity. us, B 28 statute, enacted 1936, see ch. 521, Stat. 1480, provides: 29 "It unlawful transporting ports port foreign insert rule, regulation, contract, limitation (1) purporting, event bodily fault his servants, relieve liability, liability beyond stipulated amount, injury, (2) purporting lessen, weaken, avoid right measure damages therefor. All limitations hereby declared public policy null void 30 take away [a] explicit proscription states specifically actions out "if all," "located Florida," plainly, "court within meaning statute. 31 appear acknowledge asserting directly prevent causes plaintiffs hardship rights therefore Congress' intended goal enacting Significantly, however, cite authority contention intent 183c having plaintiff distant order litigate. legislative history suggests instead response passenger-ticket limit shipowner's remove providing determined arbitration." S.Rep. 2061, 74th Cong., 2d Sess., (1936); H.R.Rep. 2517, (1936). also, Safety Life Property Sea: Hearings House Committee Merchant Marine Fisheries, pt. 4, pp. 20, 57, 109-110, 119 There prohibition allows purport negligence, V 33 so ordered. 34 whom MARSHALL joins, dissenting. 35 prefaces legal implies purchaser fully fairly notified existence choice back ante, 587-588. Even implication accurate, I disagree analysis. But, preface, my dissent only meticulous become aware appended facsimile relevant text, using type size actually appears itself. A careful reader 8th numbered paragraphs. 36 Of course, passengers, 587, read until tickets. point, already accepted condition forth 16(a), "[t]he liable refund respect wholly partly used passenger." Not knowing legally enforceable, average risk file canceling—without refund—a planned vacation minute. reduce costs, insurance premiums, forcing not, suffice render reasonable. Steven Fidelity & Casualty New York, 58 Cal.2d 862, 883, Cal.Rptr. 172, 186, P.2d 284, 298 (1962) (refusing insured "must he knows provisions"). 37 received prominent committed cost cruise, remain persuaded traditional "null void" Owners 1936 invalidate expressly stipulations shipowners' 38 Exculpatory around long time. disparate power carrier passenger, undermine deterring negligent conduct. For reasons, turn century consistently law. Thus, involving handling baggage, wrote: 39 settled exemptions carriers responsibility themselves servants unjust unreasonable, wanting element voluntary assent; besides, conflict policy. doctrine announced ago, frequently reiterated, elementary. content ourselves referring cases Baltimore Ohio &c. Railway Voigt, 176 498, 505, 507 [20 385, 388, 44 560 (1900) ], Knott Botany Mills, 179 69, 71 [21 30, 30-31, 45 90 previously adjudged referred expounded restated." Kensington, 183 263, 268, 102, 104, 190 (1902). 40 Clauses carrier's weakening passenger's recover employees come variety forms. Complete amount potential damage recovery,1 requirements unreasonably short period time,2 mandating favorable defendant cases,3 similarly designed put thumb scale justice.4 41 Forum-selection involve intersection strands qualify rule written. Pursuant first strand, traditionally reviewed heightened adhesion, offered take-or-leave stronger weaker power. Some commentators questioned adhesion justifiably theory adhering generally enters into without manifesting consent terms. Rakoff, Contracts Adhesion: Essay Reconstruction, 96 Harv.L.Rev. 1173, 1179-1180 (1983); Slawson, Mass Contracts: Lawful Fraud California, 48 S.Cal.L.Rev. 12-13 (1974); Llewellyn, Law Tradition 370-371 (1960). 42 common law, recognizing standardized significant portion agreements, less extreme subjects reasonableness. Judge Skelly Wright succinctly Williams Walker-Thomas Furniture 121 U.S.App.D.C. 315, 319-320, 445, 449-450 (1965) (footnotes omitted): 43 "Ordinarily, signs entered one-sided bargain. little hence real choice, commercially hardly consent, objective manifestation ever usual abandoned unfair withheld." Steven, Cal.2d, 879-883, 183-185, P.2d, 295-297; Henningsen Bloomfield Motors, N.J. 358, 161 A.2d 69 second doctrinal principle implicated "contractual provisions, seek action brought, invalid policy." Dougherty, Validity Contractual Provision Limiting Place Which Action May Be Brought, A.L.R.4th 404, 409, (1984). Home Insurance Morse, 451, 365 (1874). adherence declined recent years, particularly prevailing still for, create additional party, deny remedy. A.L.R.4th, 409-438 (citing cases). clearly 9, 10, 1912-13, remains today. treats controlling nothing say printed corporations Sea. recognized agreements courts,5 but ofthose extend arrangements equal 47 statute disposition today denying indisputably widely accepted. shipowner excerpt Report explains, section added direct ticketing practices. "During course hearings bill (H.R. 9969) attention committee practice reverse steamship limited some $5,000, others substantially amounts, arbitration. amendment chapter title Revised Statutes proposed to, will, stop practices character." 6-7 (emphasis added); "put character" effectuated reads: 50 manager, master, owner, added). 51 stipulation sold certainly lessens weakens ability slip fall west originated terminated California. safe witnesses members crew—can assembled thousand miles scene accident. 52 liberal reading supported remedial purpose history's condemnation "all practices." mention language broad enough encompass them. absence specific adequately explained often carriers, relying purported exonerate entirely. Moskal 103, 110-113, 461, ----, 449 53 Appeals, construing analogous Carriage Goods 1300 seq., unanimously requiring jurisdictions. Hughes Drilling Fluids M/V Luo Fu Shan, 852 840 (CA5 denied, 489 1033, 1171, 103 229 (1989); Union Soc. Canton, Ltd. S.S. Elikon, 642 721, 724-725 (CA4 1981); Indussa Corp. Ranborg, 200, 203-204 (CA2 1967). Commentators endorsed view. G. Gilmore C. Black, Admiralty 145, (2d ed. 1975); Mendelsohn, Liberalism, Choice Forum Hague Rules, Maritime Comm. 661, 663-666 mandate jurisdiction, arguably impact plaintiff's recover. Fireman's Fund Cos. Rican Forwarding 492 1294 (CA1 1974). However, individuals, conducting opposite end country proportional corporation overseas.6 54 Under circumstances, "to avoid" construed apply manifestly passengers' continue prevailed prior 55 respectfully dissent. earlier reversing ruling enforced. 863 1437 1988). withdrawn certified Supreme long-arm Wash.Rev.Code 4.28.185 (1988), conferred asserted Shutes. 872 930 1989). answered affirmative ground "arose from" advertisement promotion there. Wash.2d 763, 783 78 "refiled" "as modified herein." 380, 1. 183c: injury. ." 183b(a): sea-going (other tugs, barges, fishing vessels tenders) merchandise property provide shorter giving of, filing six months, institution claims, year, computed death occurred." U.S.C. 11707(e) ("A freight forwarder otherwise, months years bringing civil section"). 269, (1902) governed Belgian favored violation policy). "benefit [its exposure liability]." 594. reasoning, complete waiver result odds longstanding jurisprudence. "In [Carbon Black Export, Monrosa, 254 1958), 359 180, 79 710, 723 (1959),] unenforceable, reiterating view 'agreements advance controversy whose object oust enforced.' 300-301." 6, 1911, (1972). clear sue Panama, incorporated.

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