The Bremen v. Zapata Off-Shore Company
Encyclopedia
The Bremen v. Zapata Off-Shore Company, was a case decided by the United States Supreme Court, in which the court considered when a U.S. court should uphold the validity of a contractual forum selection clause
.
The parties had entered into an agreement for a drilling rig to be towed from Louisiana
to Italy
, which included a clause stating that disputes would be settled by a court in England
. When a storm forced the towing party to make land in Tampa, Florida
, the other party sued there. After the lower courts refused to uphold the forum selection clause, the Supreme Court held that it was enforceable unless the party seeking to avoid it could meet the high burden of showing it to be unreasonable or unjust.
Forum selection clause
A forum selection clause in a contract with a conflict of laws element allows the parties to agree that any litigation resulting from that contract will be initiated in a specific forum...
.
The parties had entered into an agreement for a drilling rig to be towed from Louisiana
Louisiana
Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties...
to Italy
Italy
Italy , officially the Italian Republic languages]] under the European Charter for Regional or Minority Languages. In each of these, Italy's official name is as follows:;;;;;;;;), is a unitary parliamentary republic in South-Central Europe. To the north it borders France, Switzerland, Austria and...
, which included a clause stating that disputes would be settled by a court in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
. When a storm forced the towing party to make land in Tampa, Florida
Tampa, Florida
Tampa is a city in the U.S. state of Florida. It serves as the county seat for Hillsborough County. Tampa is located on the west coast of Florida. The population of Tampa in 2010 was 335,709....
, the other party sued there. After the lower courts refused to uphold the forum selection clause, the Supreme Court held that it was enforceable unless the party seeking to avoid it could meet the high burden of showing it to be unreasonable or unjust.