Document: 487 U.S. 22 108 S.Ct. 2239 101 L.Ed.2d STEWART ORGANIZATION, INC., et al., Petitioners,v.RICOH CORPORATION, al. No. 86-1908. Argued Feb. 29, 1988. Decided June 20, Syllabus Petitioner company, an Alabama corporation, entered into a dealership agreement to market copier products of respondent, nationwide manufacturer with its principal place business in New Jersey. The contained clause providing that any dispute arising out the contract could be brought only court located Manhattan York City. company (and individual stockholder petitioners) filed diversity action United States District Court for Northern Alabama, alleging, inter alia, respondent had breached agreement. Relying on contractual forum-selection clause, motion seeking, transfer case Southern under 28 U.S.C. § 1404(a), which provides: "For convenience parties and witnesses, interest justice, district may civil other or division where it might have been brought." denied motion, holding law controlled looks unfavorably upon clauses. On interlocutory appeal, Appeals reversed remanded instructions case, venue is matter federal procedure that, standards articulated admiralty Bremen v. Zapata Off-Shore Co., 407 1, 92 1907, 32 513, was all respects enforceable generally as law. Held: 1. When sought applied congressional statute, chief question court's determination whether statute sufficiently broad control issue before court. If so, then must inquire represents valid exercise Congress' authority Constitution. Congress intended reach court, if enacted intention manner abides Constitution, end matter; courts are bound apply laws by respect matters over has legislative power. Pp. 25-27. 2. In this law, specifically governs decision give effect parties' Manhattan. 28-32. (a) Although properly noted case—which held sitting should enforce clauses absent showing do so would unreasonable unjust, invalid such reasons fraud overreaching—may prove "instructive" resolving dispute, erred articulation relevant inquiry being unenforceable standards. first consideration 1404(a) itself controls respondent's request choice 28—29. (b) Section issue. discretion adjudicate motions according individualized, case-by-case fairness. A calls weigh balance number case-specific factors, presence will figure centrally calculus. receive neither dispositive nor no consideration, but rather provided 1404(a). since Article III augmented Necessary Proper Clause. determine instance appropriate motion. 29-32. 810 F.2d 1066 (CA11 1987), affirmed remanded. MARSHALL, J., delivered opinion Court, REHNQUIST, C.J., BRENNAN, WHITE, BLACKMUN, STEVENS, O'CONNOR, KENNEDY, JJ., joined. concurring opinion, joined, post, p. 33. SCALIA, dissenting F.A. Flowers, III, Birmingham, Ala., petitioners. Scott M. Phelps, respondents. Justice MARSHALL Court. 1 This presents state adjudicating clause. 2 * underlying grew obligated petitioner Manhattan.1 Business relations between soured circumstances not here. September 1984, complaint Alabama. core allegation agreement, also included claims breach warranty, fraud, antitrust violations. 3 moved either dismiss improper 1406. Civ.Action 84-AR-2460-S (Jan. 1985). It reasoned certified ruling see 1292(b) (1982 ed., Supp. IV), Eleventh Circuit accepted jurisdiction. 4 divided panel concluded questions actions governed 779 643 (1986). therefore order After successfully rehearing en banc, 785 896 (1986), full proceeded adopt result, much reasoning, opinion. (1987).2 banc citing enactment approval several rules govern determinations actions, determined "[v]enue procedure." Id., at 1068. 513 (1972), conclude "the forum . ." F.2d, 1071. We now affirm somewhat different reasoning. II 5 Both referred difficulties often attend sticky federal, various aspects decisions diversity." 645. action,3 however, involves considerably less intricate analysis than "relatively unguided Erie choice." Hanna Plumer, 380 460, 471, 85 1136, 1144, 14 8 (1965) (referring R. Co. Tompkins, 304 64, 58 817, 82 L.Ed. 1188 (1938)). Our cases indicate when "sufficiently Court." Walker Armco Steel Corp., 446 740, 749-750, 100 1978, 1985, 64 659 (1980); Burlington Woods, 480 4-5, 107 967, 969, 94 (1987). straightforward statutory interpretation covers point dispute. See supra, U.S., 750, n. 9, S.Ct., 9.4 7, 970 (identifying Federal Rule "occupies [a rule's] field operation"). 6 determines proceeds 1144 (citing 77-79, 822-823)5 "[f]ederal power." Prima Paint Corp. Flood & Conklin Mfg. 388 395, 406, 87 1801, 1807, 18 1270 (1967); cf. ("When situation covered one Rules instructed Rule, can refuse Advisory Committee, their prima facie judgment transgresses terms Enabling Act constitutional restrictions").6 Thus, powers. 7 Applying above persuades us A. At outset we underscore methodological difference our approach from taken Appeals. based survey statutes judicial together revealed significant general, choice-of-forum particular. announced (1972),7 enforceable. But immediate grant 1404(a),8 Judge Tjoflat his special concurrence below, Court's denial constituted abuse discretion. agree 1069; Texas Industries, Inc. Radcliff Materials, Inc., 451 630, 641-642, 2061, 2067-2068, 68 500 (1981) (federal common developed jurisdiction freely transferable setting), disagree "whether selection set forth Bremen." 1069. Rather, For follow, hold does. B 9 Under outlined above, consider provision That accordance believe fairly construed, does cover 10 "individualized, fairness." Van Dusen Barrack, 376 612, 622, 84 805, 812, 11 945 (1964). thus factors. factor figures resolution example, called address issues given expressed preference venue, fairness light relative bargaining flexible individualized prescribed encompasses private expression preferences. potential source guidance consult weighing designation suitable forum. premise out-of-state venues public policy.9 integrate considerations Congress, else apply, did Alabama's categorical policy disfavoring make clear these two choices single "field operation," 970, supreme. Cf. ibid. (where law's "discretionary mode operation" conflicts nondiscretionary applies diversity). 12 true putative regarding perfectly coextensive. directs take account factors those bear solely ordering affairs. witnesses public-interest systemic integrity addition concerns, come heading justice." conceivable particular because acting notwithstanding counterweight whereas coordinate rule dictate opposite result.10 15 C. Wright, Miller, E. Cooper, Practice Procedure 3847, 371 (2d ed. 1986). conflict fact frames additional argument supremacy directed multiple within system, focusing concern subset identified defeat command. Its application impoverish multifaceted system. most proper forum, (as it) it), Norwood Kirkpatrick, 349 32, 75 544, 546, 99 789 (1955) (§ accords plaintiff's consideration). "can exist side each controlling own sphere coverage without conflict." 752, 1986. 13 Because enact subject serious question. As made plain Hanna, system carries power governing practice pleading courts, turn includes regulate which, though falling uncertain area substance procedure, rationally capable classification either." 472, 1144. id., 473, 1145 ("Erie offspring cast doubt long-recognized prescribe housekeeping courts"). doubtless procedural rule, indeed, classified pursuant carry change applicable 636-637, 819-820 ("[B]oth history purposes regarded measure"). falls comfortably powers 5, 3, 3. Manhattan.11 reversing ordered. whom O'CONNOR joins, concurring. 16 I concur full. write separately observe enforcement clauses, bargained parties, protects legitimate expectations furthers vital interests justice 10, 1913, involved admiralty, reasoning force diversity. justifications counter historical disfavor received American 1912, understood guide 17 strong correct questions, spare litigants unnecessary costs relieve time-consuming pretrial motions. Courts announce encourage support who negotiate Though policies weighed balance, prerogative issue, exercised weight exceptional cases. Bremen, 1913. dissenting. 19 initial validity scope ante, ---- - ----, ----. cannot agree, answer yes. Nor can, consistent twin-aims test (1938), fashion judge-made validity. 20 litigant asserts formal Procedure, task disputed Rule. cause direct collision implicitly i.e., thereby leaving room operation 969-970, not. 21 language provides answer, my view provide direction. vests another "[f]or present future. specific reference suggests, requires what likely just future, tried, things they stand. Accordingly, applying examined variety pertains facts currently exist: e.g., actually chosen plaintiff, current location pertinent books records, similar litigation pending elsewhere, docket conditions, familiarity §§ 3848-3849, 3851, 3853-3854 inevitably imports, adequate textual foundation, new retrospective element deliberations, requiring examination were concerning, among things, absence overreaching time made. 28, 29. largely attempts avoid acknowledging novel gives casting how against makes weight-among-factors us, because, while decide them inconvenience, witnesses. description begs question: allocation inconvenience parties. invalid, voided, entitled determination. Since Redwing Carriers, Foster, 382 So.2d 554, 556 (Ala.1980), reached preliminary parties.* 23 Second, background contract, including contract's validity, nearly always simply contrary wrenched explicit provision. particularly instructive regard compare provision, same year earlier, pre-empt precisely selection. Arbitration Act, 2, 24 "A written evidencing transaction involving commerce settle arbitration controversy thereafter transaction, refusal perform whole part thereof, writing submit existing refusal, shall valid, irrevocable, enforceable, save grounds equity revocation contract." 25 said "kind clause," Scherk Alberto-Culver 417 506, 519, 2449, 2457, 41 270 (1974), contrast preemption more stark. nowhere mentions contracts agreements, certain agreements difficult meant pre-empted "should measure," 819-820, (1964), factors" used doctrine non conveniens, (1955), retroactively procedural, Ex parte Collett, 337 55, 71, 69 944, 952, 93 1207 (1949). seems me generality language—"[f]or justice"—is plainly insufficient work great asserted 26 Third, ground Erie, 74-77, 820-822, point, substantial uniformity predictable outcome striven for. Klaxon Stentor Electric 313 487, 496, 61 1020, 1021, 1477 (1941). rests perception plan creation pendent lower quite obviously carried forward ambiguous relating assume, words, fair concerned differences claims. Southland Keating, 465 15, 104 852, 860, 79 (1984) (interpreting discourage shopping). deciding reading create disuniformity avoided text permits. See, 750-751, 1985-1986, Cohen Beneficial Industrial Loan 541, 556, 1221, 1230, 1528 (1949); Palmer Hoffman, 318 109, 117, 63 477, 482, 645 (1943); P. Bator, D. Meltzer, Mishkin, Shapiro, Hart Wechsler's System 828 (3d 1988) ("The Supreme continued interpret important regulatory policies"). shown, today natural meaning; best, ambiguous. construe encouragement shopping adopts today. 27 remaining not, Decision 1652, mandates use 72-73, 819-820; 471-472, (if lack "state there law"); DelCostello Teamsters, 462 151, 174, 103 2281, 2296, 76 476 (1983) (O'CONNOR, dissenting) (Rules "simply unless applies"); 159, 13, 2288, 13. interpreting substantive essence "judicial Power" created encompass making 78-79, 822-823. Whatever courts' areas, mere here claim, empower Campbell Haverhill, 155 610, 616, 217, 219, 39 280 (1895) "itself contains suggests distinction" federal-question cases); DelCostello, 173, 2295, (STEVENS, (same); (1981). authority, them. 2071 "for conduct business"); Fed.Rule Civ.Proc. 83 (districts "regulate practice"); Sibbach Wilson 312 9-10, 422, 424-425, 479 29 purposes, adhered functional "twin aims rule: discouragement forum-shopping avoidance inequitable administration laws." 468, 1142; 6; 747, 1983. Moreover, although reviewing rulemakers trespassed beyond wide latitude 969-970; 471-474, 1144-1146, 30 test, Circuit's clearly encourages shopping. Venue vitally matter, shown frequency contractually litigate Suit well pursued, successful, significantly convenient Transfer desirable is, therefore, sufficient import plaintiffs base likelihood eventuality choosing sue With State unfavorable seek encouraged nonresident defendants shop favorable removing reverse situation—where enforcing clauses—plaintiffs alone warrant 753, 1986 (failure meet suffices law). 31 creating fails second well, producing laws. best explanation constitutes found itself: allowing unfair discrimination noncitizens citizens state. 74-75, 820-821; 1142, 9. Whether context turns 467-468, 1141-1142, legal accident citizenship, see, Walker, 1986, unrelated imagine importance, goes very merits lawsuit, Certainly, previously require subjects lesser importance. supra (whether filing service tolls limitations); Bernhardt Polygraphic America, 350 198, 202-204, 273, 275-277, 199 (1956) (arbitrability); 555-556, 1229-1230 (indemnity bond expenses). ignore traditionally stated, respectfully dissent. Specifically, read: "Dealer Ricoh Borough Manhattan, City, York, exclusive connection Agreement controversy." App. 38-39. Tjoflat, joined judges, argued of, ultimately enforced, evaluation 1071-1076. There five members Circuit, warned improperly undermine policy. 1076-1077. Respondent points alleged rest both existence 1337, 1332. suggest claim affect plurality likewise indeed characterized breach-of-contract action. 1066, 1067, 1068 conclusion Part infra, academic cut favor decide, necessarily alters times stage "direct collision" 749, 1984; (1965). Logic indicates, careful passages confirms, mandate coextensive equally hand; rather, language, least applicability expresses requirement 470, 1143. sense wane directly point. identifies Civil measured "abridge, enlarge modify right. 2072. evaluate disserve so-called 1142. policies, 752-753, "would overreaching." S.Ct, 1916. 1406(a) apparently 1391(c) (venue corporation doing business). protect play ado about nothing. 1069-1070. contours 4, supra. dissent argues accorded Not problems dissent's depend content automatically able void. validly occasion impact aims" animate doctrine. Contrary nothing unusual having law." Ante, 31, 10. recognized required depends, here, fundamentally Commissioner Estate Bosch, 387 456, 457, 464-465, 1776, 1778, 1782-1783, 886 Budinich Becton Dickinson 486 196, 199, 1717, 178 (1988) (dictum). undermined still some situations state-law courts. nonetheless warranted remarkable When, hand, KENNEDY's "given cases." And even unwarranted dismissing suit.

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