Carnival Cruise Lines Inc v Shute

1991

Venue: SCOTUS

Facts: The Shutes, of WA, buy some tickets for a cruise. There's a forum selection clause (FL) in the fine print. Mrs. Shute slips on a mat in international waters and is hurt.

Posture: Suit in US district court in WA. Motion for summary judgment on the basis that the suit had to be filed in FL. Looks like Ct. App. failed to enforce the forum selection clause.

Issue: Is Carnival subject to personal jurisdiction in WA?

Holding: No, the forum selection clause should have been enforced.

Rule: As long as a clause of this sort is fair, it should be upheld.

Reasoning: There are obvious reasons why a cruise line would want to control where it gets sued. Everyone had notice, and there's no sign of bad faith here, or predatory bargaining.

Dicta: Stevens, dissenting: Contracts of adhesion get special scrutiny, and provisions seeking to limit place or court of actions are contrary to public policy.