Forum selection clause dictates where you can sue a cruise line

Timing is everything. But when disputes lead to formal legal action, the most important consideration might well be, as they say, “location, location, location.”

That’s why forum selection clauses are becoming increasingly popular in all types of maritime contracts. From towage agreements to vessel charters, employment contracts and even cruise line tickets, industry players are taking advantage of their freedom to contract by stipulating (and limiting) where they can sue or be sued.

By including a forum selection clause in contracts, you can require that litigation arising out of the contract be brought only in the particular federal or state court forum of your choice. This can provide the tactical benefit of avoiding an unfriendly forum as well as promote savings on legal expenses by ensuring that legal battles are fought close to home.

Under maritime law, forum selection clauses are generally valid and enforceable, with courts traditionally respecting parties’ rights to demand and accept forum selection by contract.

However, there are exceptions to every rule. Sometimes your desired judicial locale can be challenged and possibly rejected. Typically, courts will overrule a forum selection contract if it is demonstrated that the agreement to be sued in a specified jurisdiction was the result of fraud or overreaching, or that trial in a particular venue would be so difficult and inconvenient that the other party would for all practical purposes be deprived of his day in court.

Also, laws in certain states may restrict the viability of a forum selection clause. In Louisiana, such provisions in most employment contracts are null and void. Other jurisdictions have held that unreasonable forum selection clauses cannot be enforced to the detriment of Jones Act seamen. Also, when the forum selection provisions are not clearly spelled out or use ambiguous language, they can be invalidated if challenged in court.