conflicts of law cases a

8/19/2019 Conflicts of Law Cases A

1/34

Carnival Cruise Lines, Inc. vs. Shute

Carnival Cruise Lines, Inc. v. Shute

499 U.S. 585 (1991)

Yeazell, pp. 1691!"

#acts$ %he Shutes &ent 'n a cruise. n the ticet, there &as a *'ru+ selecti'n

clause that sai an- litiati'n relate t' the cruise +ust /e trie in #l'ria. %he-

eparte *'r their cruise *r'+ L's 0neles an the ship saile t' e2ic' an /ac t'

L's 0neles. rs. Shute slippe 'n the ship an hurt hersel*. %he Shutes sue in

3ashint'n an Carnival +'ve *'r su++ar- u+ent ue t' the *'ru+ selecti'n

clause. 0t trial, the Shutes c'ncee that the- ha n'tice '* the *'ru+ selecti'n

clause.

r'ceural 'sture$ %he suit &as rst /r'uht in the 3estern 7istrict '* 3ashint'n.

%he inth Circuit re*use t' en*'rce the clause, an the cruise line appeale t' the

Unite States Supre+e C'urt.

Issue$ Is the *'ru+ selecti'n clause en*'rcea/le

:ule$ C'urts have the resp'nsi/ilit- t' eter+ine &hether *'ru+ selecti'n clauses in

*'r+ passae c'ntracts are *air.

0nal-sis$ %he C'urt sa-s that the ticet c'ntract &as a r'utine c'++ercial passae

c'ntract. It &as n't ne'tiate, an the parties i n't have e;ual /arainin

p'&er.

%he C'urt enu+erates several '' reas'ns *'r a *'ru+ selecti'n clause in a cruiseticet c'ntract$

1. 0 cruise &ill have passeners *r'+ all 'ver the c'untr-, an a/sent a *'ru+

selecti'n clause, the cruise c'+pan- c'ul /e su/ect t' suit in all s'rts '* places.


2/34

". 0 *'ru+ selecti'n clause eli+inates uncertaint- a/'ut the *'ru+ an av'is

c'stl- pretrial +'ti'ns.

&ere n't *reel-

/araine *'r?, (") >create aiti'nal e2pense *'r 'ne part-?, 'r (en- 'ne part-

a re+e-?.

'tes an r'/le+s

1.

a. It is +'st liel- that the suit &'ul either /e /r'uht in #l'ria 'r 3ashint'n.

/. In #l'ria, there &'ul /e n' pr'/le+. #l'ria c'urts have eneral urisicti'n

'ver Carnival /ecause that=s their principal place '* /usiness. %hus, an- *eeralc'urt l'cate in #l'ria &'ul have pers'nal urisicti'n 'ver Carnival. In

3ashint'n, h'&ever, Carnival &'ul tr- t' arue that it 'esn=t have su@cient

+ini+u+ c'ntacts. I* Carnival 'nl- s'licits /usiness thr'uh travel aents an

'esn=t have %A c'++ercials (h++++B.) then the- +iht have a case *'r n'

urisicti'n in 3ashint'n.

".


3/34

a. S' there=s a c'ntract la& issue.

/. S' there=s a pu/lic p'lic- issue.

c. %he +a'rit- spens +'re ti+e 'n the en*'rcea/ilit- issue. %he- arue that

the c'ntract clause is en*'rcea/le even th'uh the passeners &ere n't all'&e t'

ne'tiate it. %he c'urt ives three reas'ns &h- this is accepta/le$ (1) the iversit-

'* Carnival=s passeners c'ul su/ect the+ t' suit in a variet- '* urisicti'ns (") a

*'ru+ selecti'n clause reuces the uncertaint-, ti+e an +'ne- inv'lve in

eter+inin a *'ru+ an (isc'uraDeE cruise passeners *r'+ pursuin leiti+ate clai+s?.

%he- als' &'ul n't en*'rce a *'ru+ selecti'n clause that &as '/taine /- >*rau 'r

'verreachin?.


4/34

a. %his in '* clause sa-s &e=ll use the la&s '* suchansuch a *'ru+, even i*

&e 'n=t ' the trial in that particular *'ru+.

/. %his 'ne sa-s >&e enitel- can ' the suit in *'ru+ M, /ut n't necessaril- 'nl-

*'ru+ M?.

c. Here &e=re 'in an- an all suits in *'ru+ M an 'nl- *'ru+ M.

. I lie ar/itrati'n.

e. %his is prett- e2tre+e.

C'nclusi'n$ %he *'ru+ selecti'n clause is en*'rcea/le.

%he re+en vs. Napata FSh're C'.

OS re+en v. Napata FSh're C'.

4P! U.S. 1

SYSIS$

%he petiti'ner s'uht revie& '* the c'urt /- certi'rari rearin a u+ent that

&as entere /- the #i*th Circuit c'urt '* appeals.

0 *'ru+ selecti'n cause in a c'ntract /et&een a Ger+an c'rp'rati'n an the Unite

States resp'nent c'rp'rati'n &as hel invali /- the l'&er c'urt.

#0C%S$

%he Ger+an c'rp'rati'n c'ntracte &ith the Unite States c'rp'rati'n t' +'ve an

'il ri *r'+ L'uisiana t' the 0riatic Sea.

7urin transp'rtati'n, the ri &as a+ae an &as t'&e t' %a+pa, #l'ria.

%he Unite States c'rp'rati'n le suit in %a+pa.

%he Ger+an c'rp'rati'n, h'&ever, ase the istrict c'urt t' en*'rce the *'ru+

selecti'n clause that &as c'ntaine in the c'ntract. %his place urisicti'n in

nlan.

%he istrict c'urt re*use t' en*'rce the clause an the l'&er appellate c'urt

a@r+e the istrict c'urtQs rulin.


5/34

HL7IG$

%he c'urt hel that the *'ru+selecti'n clause sh'ul /e en*'rce unless the part-

resistin the clause c'ul sh'& that en*'rce+ent '* the clause &'ul /e

unreas'na/le.

00LYSIS$

%he aru+ent that such clauses 'uste a c'urt '* urisicti'n &as *'un n't t' /e

vali.

%he Ger+an c'rp'rati'n i n't &aive 'perati'n '* the clause /- appearin in the

*eeral c'urt.

0s a result, the c'urt state that the *'ru+ selecti'n clause &as vali.

%he case &as re+ane *'r a eter+inati'n '* &hether en*'rce+ent &as

unreas'na/le.

:ULS$

#'ru+selecti'n clauses are pri+a *acie vali an sh'ul /e en*'rce unless

en*'rce+ent is sh'&n /- the resistin part- t' /e unreas'na/le uner the

circu+stances. %his is the c'rrect 'ctrine t' /e *'ll'&e /- *eeral istrict c'urtssittin in a+iralt-.

U%C$ %he c'urt vacate the l'&er appellate c'urtQs u+ent an re+ane

this case *'r a eter+inati'n '* &hether the en*'rce+ent '* the *'ru+selecti'n

clause &as unreas'na/le 'r reas'na/le.

urer Jin C'rp vs. :uze&icz

#acts

:uze&icz (7) an acShara entere int' a *ranchise c'ntract &ith urer Jin

C'rp. () t' 'pen a restaurant in ichian. urer Jin &as inc'rp'rate in #l'ria

an a ch'ice '* la& clause in the c'ntract inicate that #l'ria la& &as c'ntr'llin.


6/34

%he c'ntract all'&e :uze&icz t' use urer Jin=s trae+ars an service +ars

*'r "P -ears in ichian. 0ll nancial '/liati'ns '&e t' urer Jin &ere sent t'

#l'ria an 7 receive trainin in #l'ria. 0n ec'n'+ic '&nturn le t' ecrease

sales an :uze&icz *aile t' +eet his '/liati'ns uner the c'ntract.

urer Jin /r'uht a iversit- suit aainst :uze&icz in the S'uthern 7istrict '*

#l'ria. :uze&icz an acShara +'ve t' is+iss 'n the r'uns that the c'urt

i n't have pers'nal urisicti'n 'ver the+ /ecause the- i n't have su@cient

+ini+u+ c'ntacts &ith the state. %he c'urt enie :uze&icz +'ti'n an rule that

urisicti'n &as pr'per uner #l'ria=s l'n ar+ statute. %he c'urt entere

u+ent in *av'r '* urer Jin an :uze&icz appeale.

n appeal, the c'urt hel that &hile :uze&icz ha su@cient c'ntacts &ith the

state '* #l'ria t' satis*- the state=s l'n ar+ statute, the e2ercise '* pers'nal urisicti'n &as *una+entall- un*air an &as a vi'lati'n '* ue pr'cess. urer

Jin appeale.

Issues

ust a plaintiF sh'& that an 'ut '* state e*enant has /'th +ini+u+ c'ntacts

&ith the *'ru+ state an that it is *air an e;uita/le t' re;uire a e*enant t'

e*en a suit in the state

3hat *act'rs +ust the c'urt /alance in aressin reas'na/leness in urisicti'nal

anal-sis

H'lin an :ule (rennan)

'. 0 plaintiF nee n't sh'& that an 'ut '* state e*enant has /'th +ini+u+

c'ntacts &ith the *'ru+ state an that it is *air an e;uita/le t' re;uire the

e*enant t' e*en a suit in the state.

%he *act'rs the c'urt +ust /alance in aressin reas'na/leness in an anal-sis '*

pers'nal urisicti'n are$

(1) the e2tent '* a e*enant=s purp'se*ul interecti'n in the *'ru+ state

(") the /uren 'n the e*enant in e*enin in the *'ru+


7/34

(


8/34

sta/lishin that the e*enant has +ini+u+ c'ntacts creates a re/utta/le

presu+pti'n that it is *air t' re;uire hi+ t' e*en there. %he /uren shi*ts t' the

e*enant t' sh'& that it &'ul /e un*air t' e*en in the state. %he ;uesti'n '*

*airness re;uires a /alancin '*$ the *'ru+=s interest in the litiati'n, the plaintiF=sinterest in e@cient an c'nvenient relie*, the e+ans '* the *eeral s-ste+ as a

&h'le, the /est interests '* the *eeral s-ste+, an the e*enant=s interest in n't

havin t' e*en a suit in a re+'te 'r isavantae'us *'ru+.

%he c'urt hel that in this case the *ranchise aree+ent &ith urer Jin all'&e

:uze&icz t' /enet *r'+ an ass'ciati'n &ith a #l'ria c'rp'rati'n *'r t&ent-

-ears. :uze&icz ha c'ntinuin an irect c'ntacts &ith urer Jin. %he *act that

:uze&icz=s c'ntacts &ere purp'se*ul all'&e the state t' e2ercise pers'nal

urisicti'n espite that th'se c'ntacts &ere +ini+al. %he c'ntract inicate that

#l'ria la& &'ul appl-. It cann't /e a sh'c that urer Jin &'ul sue :uze&icz

there *'r a /reach '* the c'ntract in liht '* the clear c'ntractual ter+s '* the

aree+ent.

:uze&icz ha n't sh'&n that he &'ul /e un*airl- preuice 'r har+e /- a trial

in #l'ria an the purp'se*ul inv'lve+ent '* :uze&icz in the c'ntract +et the

+ini+u+ c'ntact re;uire+ents.

7isp'siti'n

u+ent *'r e*enant :uze&icz reverse.

7issent (Stevens)

It is un*air t' re;uire a *ranchisee t' e*en a case '* this in in a *'ru+ ch'sen /-

the *ranchis'r. :uze&icz i n' /usiness in the state '* #l'ria. %he principal

c'ntacts &ere in ichian &ith the l'cal '@ce '* urer Jin. :uze&icz ha a l'cal

'perati'n &ith *ar less res'urces than urer Jin. It &'ul /e *una+entall- un*air*'r :uze&icz t' /e re;uire t' e*en in #l'ria.

'te$ It is i+p'rtant t' re+e+/er that the c'ntract ha ch'ice '* la& clause, /ut

n't a *'ru+ selecti'n claus


9/34

S&eet Lines, Inc. vs. %eves, et al.

Less'ns 0pplica/le$ C'ntract '* 0hesi'n (%ransp'rtati'n)

La&s 0pplica/le$

#0C%S$

0tt-. Le'viil' %an' an :'eli' %ir' /'uht ticets *'r %a/ilaran Cit- via the

p'rt '* Ce/u

Since +an- passeners &ere /'un *'r Suria', OS TS&eet H'pe &'ul n't /e

pr'ceein t' 'h'l

%he- &ent t' the pr'per /ranc '@ce an &as rel'cate t' OS TS&eet %'&nT &here

the- &ere *'rce t' aree Tt' hie at the car' secti'n t' av'i inspecti'n '* the

'@cers '* the hilippine C'astuar.T an the- &ere e2p'se t' the sc'rchin heat

'* the sun an the ust c'+in *r'+ the shipQs car' '* c'rn rits an their ticets

&ere n't h'n're s' the- ha t' purchase a ne& 'ne

%he- sue S&eet Lines *'r a+aes an *'r /reach '* c'ntract '* carriae /e*'re

the C'urt '* #irst Instance '* isa+is riental &h' is+isse the c'+palitn *'ri+pr'per venue

0 +'ti'n &as pre+ise 'n the c'niti'n printe at the /ac '* the ticets

is+isse

instant petiti'n *'r pr'hi/iti'n *'r preli+inar- inuncti'n

ISSU$ 3O a c'++'n carrier enae in interislan shippin stipulate thru

c'niti'n printe at the /ac '* passae ticets t' its vessels that an- an all

acti'ns arisin 'ut '* the c'ntract '* carriae sh'ul /e le 'nl- in a particular

pr'vince 'r cit-

HL7$ .petiti'n *'r pr'hi/iti'n is 7ISISS7. :estrainin 'rer LI#%7 an S%

0SI7

c'ntract '* ahesi'n


10/34

n't that in '* a c'ntract &here the parties sit '&n t' eli/erate, iscuss

an aree specicall- 'n all its ter+s, /ut rather, 'ne &hich resp'nents t''

n' part at all in preparin ust i+p'se up'n the+ &hen the- pai *'r the *are *'r the *reiht the-

&ante t' ship

3e n an h'l that C'niti'n '. 14 printe at the /ac '* the passaeticets sh'ul /e hel as v'i an unen*'rcea/le *'r the *'ll'&in reas'ns circu+stances '/liati'n in the interislan ship &ill preuice rihts an interests '* innu+era/le passeners in iFerent s '*

the c'untr- &h', uner C'niti'n '. 14, &ill have t' le suits aainst

petiti'ner 'nl- in the Cit- '* Ce/u su/versive '* pu/lic p'lic- 'n trans*ers '* venue '* acti'ns phil's'ph- unerl-in the pr'visi'ns 'n trans*er '* venue '* acti'ns is the

c'nvenience '* the plaintiFs as &ell as his &itnesses an t' pr'+'te "1 the

ens '* ustice

HSC vs. ac :'/ert Sher+an, et al.

G.:. '. !"494 0uust 11, 1989

HGJG 07 SH0GH0I 0JIG C::0%I, petiti'ner,

vs.

0CJ ::% SH:0, 770% :L an %H I%:7I0% 0LL0%

CU:%, resp'nents.

uias'n, aalintal, ar't V %'rres *'r petiti'ner.

0leanr', 0ranzas' V 0ss'ciates *'r private resp'nents.

7I0L70, .$


11/34

%his is a petiti'n *'r revie& 'n certi'rari '* the ecisi'n '* the Inter+eiate

0ppellate C'urt (n'& C'urt '* 0ppeals) ate 0uust ", 1985, &hich reverse the

'rer '* the :ei'nal %rial C'urt ate #e/ruar- "8,1985 en-in the 'ti'n t'

7is+iss le /- private resp'nents ac :'/ert Sher+an an 7e'at' :el'.

0 c'+plaint *'r c'llecti'n '* a su+ '* +'ne- (pp. 495", :'ll') &as le /-

petiti'ner H'n'n an Shanhai anin C'rp'rati'n (hereina*ter re*erre t' as

petiti'ner 0J) aainst private resp'nents ac :'/ert Sher+an an 7e'at'

:el', 'cete as Civil Case '. 4"85P /e*'re the :ei'nal %rial C'urt '* uez'n

Cit-, ranch 84.

It appears that s'+eti+e in 1981, astern '' Suppl- Service %, Lt.

(hereina*ter re*erre t' as C0Y), a c'+pan- inc'rp'rate in Sinap're applie

&ith, an &as rante /-, the Sinap're /ranch '* petiti'ner 0J an 'verra*t*acilit- in the +a2i+u+ a+'unt '* Sinap're 'llars "PP,PPP.PP (&hich a+'unt &as

su/se;uentl- increase t' Sinap're 'llars

*acilit- as a securit- *'r the repa-+ent /- the C0Y '* su+s avance /-

petiti'ner 0J t' it thr'uh the a*'resai 'verra*t *acilit-, 'n ct'/er !, 198",

/'th private resp'nents an a certain :'/in e Clive L'&e, all '* &h'+ &ere

irect'rs '* the C0Y at such ti+e, e2ecute a 'int an Several Guarantee (p.

5


12/34

n 7ece+/er 14,1984, private resp'nents le a +'ti'n t' is+iss (pp 5456,

:'ll') &hich &as 'pp'se /- petiti'ner 0J (pp. 586", :'ll'). 0ctin 'n the

+'ti'n, the trial c'urt issue an 'rer ate #e/ruar- "8, 1985 (pp, 6465, :'ll'),

&hich rea as *'ll'&s$

In a 'ti'n t' 7is+iss le 'n 7ece+/er 14, 1984, the e*enants see the

is+issal '* the c'+plaint 'n t&' r'uns, na+el-$

1. %hat the c'urt has n' urisicti'n 'ver the su/ect +atter '* the c'+plaint

an

". %hat the c'urt has n' urisicti'n 'ver the pers'ns '* the e*enants.

In the liht '* the pp'siti'n theret' le /- plaintiF, the C'urt ns n' +erit in the

+'ti'n. Tn the rst r'un, e*enants clai+ that /- virtue '* the pr'visi'n in the

Guarantee (the acti'na/le 'cu+ent) &hich reas K

%his uarantee an all rihts, '/liati'ns an lia/ilities arisin hereuner shall /ec'nstrue an eter+ine uner an +a- /e en*'rce in acc'rance &ith the la&s

'* the :epu/lic '* Sinap're. 3e here/- aree that the c'urts in Sinap're shall

have urisicti'n 'ver all isputes arisin uner this uarantee,

the C'urt has n' urisicti'n 'ver the su/ect +atter '* the case. %he C'urt ns

an c'nclues 'ther&ise. %here is n'thin in the Guarantee &hich sa-s that the

c'urts '* Sinap're shall have urisicti'n t' the e2clusi'n '* the c'urts '* 'ther

c'untries 'r nati'ns. 0ls', it has l'n /een esta/lishe in la& an urispruence that

urisicti'n '* c'urts is 2e /- la& it cann't /e c'n*erre /- the &ill, su/+issi'n 'rc'nsent '* the parties.

n the sec'n r'un, it is asserte that e*enant :'/ertQ , Sher+an is n't a

citizen n'r a resient '* the hilippines. %his aru+ent h'ls n' &ater. urisicti'n

'ver the pers'ns '* e*enants is ac;uire /- service '* su++'ns an c'p- '* the

c'+plaint 'n the+. %here has /een a vali service '* su++'ns 'n /'th e*enants


13/34

an in *act the sa+e is a+itte &hen sai e*enants le a Q'ti'n *'r 2tensi'n

'* %i+e t' #ile :esp'nsive leain 'n 7ece+/er 5, 1984.

3H:#:, the 'ti'n t' 7is+iss is here/- 7I7.

S :7:7.

0 +'ti'n *'r rec'nsierati'n '* the sai 'rer &as le /- private resp'nents

&hich &as, h'&ever, enie (p. 66, :'ll').

rivate resp'nents then le /e*'re the resp'nent Inter+eiate 0ppellate C'urt(n'& C'urt '* 0ppeals) a petiti'n *'r pr'hi/iti'n &ith preli+inar- inuncti'n anO'r

pra-er *'r a restrainin 'rer (pp.


14/34


15/34

%here is n'thin +'re i+perative an restrictive than &hat the aree+ent

cate'ricall- c'++ans that Qall rihts, '/liati'ns, an lia/ilities arisin hereuner

shall /e c'nstrue an eter+ine uner an +a- /e en*'rce in acc'rance &ith

the la&s '* the :epu/lic '* Sinap're.Q

3hile it is true that Tthe transacti'n t'' place in Sinap'rean settinT an that the

'int an Several Guarantee c'ntains a ch'ice'**'ru+ clause, the ver- essence '*

ue pr'cess ictates that the stipulati'n that TDtEhis uarantee an all rihts,

'/liati'ns an lia/ilities arisin hereuner shall /e c'nstrue an eter+ine

uner an +a- /e en*'rce in acc'rance &ith the la&s '* the :epu/lic '*

Sinap're. 3e here/- aree that the C'urts in Sinap're shall have urisicti'n 'ver

all isputes arisin uner this uaranteeT /e li/erall- c'nstrue. ne /asic principle

unerlies all rules '* urisicti'n in Internati'nal La&$ a State 'es n't have

urisicti'n in the a/sence '* s'+e reas'na/le /asis *'r e2ercisin it, &hether the

pr'ceeins are in re+ ;uasi in re+ 'r in pers'na+. %' /e reas'na/le, the urisicti'n +ust /e /ase 'n s'+e +ini+u+ c'ntacts that &ill n't 'Fen

traiti'nal n'ti'ns '* *air pla- an su/stantial ustice (. Sal'na, rivate

Internati'nal La&, 1981, p. 46). Inee, as p'inte'ut /- petiti'ner 0J at the

'utset, the instant case presents a ver- ' situati'n. In the 'rinar- ha/its '* li*e,

an-'ne &'ul /e isincline t' litiate /e*'re a *'rein tri/unal, &ith +'re reas'n

as a e*enant. H'&ever, in this case, private resp'nents are hilippine resients

(a *act &hich &as n't ispute /- the+) &h' &'ul rather *ace a c'+plaint aainst

the+ /e*'re a *'rein c'urt an in the pr'cess incur c'nsiera/le e2penses, n't t'

+enti'n inc'nvenience, than t' have a hilippine c'urt tr- an res'lve the case.

rivate resp'nentsQ stance is harl- c'+prehensi/le, unless their ulti+ate intent is

t' evae, 'r at least ela-, the pa-+ent '* a ust '/liati'n.

%he e*ense '* private resp'nents that the c'+plaint sh'ul have /een le in

Sinap're is /ase +erel- 'n technicalit-. %he- i n't even clai+, +uch less

pr've, that the lin '* the acti'n here &ill cause the+ an- unnecessar- tr'u/le,

a+ae, 'r e2pense. n the 'ther han, there is n' sh'&in that petiti'ner 0J

le the acti'n here ust t' harass private resp'nents.

In the case '* 'l-trae C'rp'rati'n vs. lanc', G.:. '. L"!P


16/34

plaintiF 'r e*enant. %he plain +eanin is that the parties +erel- c'nsente t' /e

sue in anila. uali*-in 'r restrictive &'rs &hich &'ul inicate that anila an

anila al'ne is the venue are t'tall- a/sent there*r'+. 3e cann't rea int' that

clause that plaintiF an e*enant /'un the+selves t' le suits &ith respect t' the

last t&' transacti'ns in ;uesti'n 'nl- 'r e2clusivel- in anila. #'r, that aree+ent

i n't chane 'r trans*er venue. It si+pl- is per+issive. %he parties s'lel- areet' a the c'urts '* anila as tri/unals t' &hich the- +a- res'rt. %he- i n't

&aive their riht t' pursue re+e- in the c'urts specicall- +enti'ne in Secti'n

"(/) '* :ule 4. :enuntiati' n'n praesu+itur.

%his rulin &as reiterate in the case '* eville Y. La+is nts., et al. v. Laa+'n,

etc., et al., G.:. '. 5!"5P, ct'/er 0s rears the issue 'n i+pr'per venue, petiti'ner 0J avers that the '/ecti'n t'

i+pr'per venue has /een &aive. H'&ever, 3e aree &ith the rulin '* the

resp'nent C'urt that$


17/34

3hile in the +ain, the +'ti'n t' is+iss *ails t' cate'ricall- use &ith e2actitue

the &'rs Qi+pr'per venueQ it can /e perceive *r'+ the eneral thrust an c'nte2t

'* the +'ti'n that &hat is +eant is i+pr'per venue, %he use '* the &'r

Qurisicti'nQ &as +erel- an atte+pt t' c'p-cat the sa+e &'r e+pl'-e in theuarantee aree+ent /ut c'nve-s the c'ncept '* venue. rushin asie all

technicalities, it &'ul appear that urisicti'n &as use l''sel- as t' /e

s-n'n-+'us &ith venue. It is in this spirit that this C'urt +ust vie& the +'ti'n t'

is+iss. ... (p.

auth'rize /- la& t' e2ercise urisicti'n. 0n even i* it is s' auth'rize, it +a- still

re*use t' entertain the case /- appl-in the principle '* *'ru+ n'n c'nveniens. ...

H'&ever, &hether a suit sh'ul /e entertaine 'r is+isse 'n the /asis '* the

principle '* *'ru+ n'n c'nveniens epens larel- up'n the *acts '* the particular

case an is aresse t' the s'un iscreti'n '* the trial c'urt (. Sal'na, rivateInternati'nal La&, 1981, p. 49).lX&ph1.Z[t %hus, the resp'nent C'urt sh'ul n't

have relie 'n such principle.

0lth'uh the 'int an Several Guarantee prepare /- petiti'ner 0J is a c'ntract

'* ahesi'n an that c'nse;uentl-, it cann't /e per+itte t' tae a stan c'ntrar-

t' the stipulati'ns '* the c'ntract, su/stantial /ases e2ist *'r petiti'ner anQs

ch'ice '* *'ru+, as iscusse earlier.

Lastl-, private resp'nents allee that neither the petiti'ner /ase at H'n'n n'r

its hilippine /ranch is inv'lve in the transacti'n sue up'n. %his is a vain atte+pt

'n their part t' *urther th&art the pr'ceeins /el'& inas+uch as &elln'&n is the

rule that a e*enant cann't plea an- e*ense that has n't /een interp'se in the

c'urt /el'&.

0CC:7IGLY, the ecisi'n '* the resp'nent C'urt is here/- :A:S7 an the

ecisi'n '* the :ei'nal %rial C'urt is :IS%0%7, &ith c'sts aainst private

resp'nents. %his ecisi'n is i++eiatel- e2ecut'r-.

S :7:7.


18/34

arvasa, Cruz, Ganca-c' an GriZ'0;uin', ., c'ncur.

3hite vs. %ennant

3hite v. %ennant

Supre+e C'urt '* 0ppeals '* 3est Airinia

8 S.. 596 (1888)

#acts

%he 3hites '&ne a lare *a+il- *ar+ al'n the 3est Airinia an enns-lvania

/'rer, &ith pr'pert- l'cate in each state. %he +ansi'nh'use &as l'cate in 3est

Airinia. ichael 3hite an his &i*e Lucina (e*enant) s'l their h'use in 3est

Airinia in 'rer t' +'ve int' a h'use 'n the *a+il- pr'pert- in enns-lvania. n

0pril ", 1885, ichael an Lucina travele t' the ne& resience &ith all '* their

p'ssessi'ns an livest'c. Lucina &as ill at the ti+e, an the- *'un the h'use t'

/e an an unc'+*'rta/le. %hus, the- accepte the invitati'n '* ichael=s /r'thers

an sisters (c'llectivel-, plaintiFs) t' spen the niht at the +ansi'nh'use /ac in

3est Airinia. %he- le*t all '* their p'ssessi'ns an livest'c at the enns-lvania

pr'pert-. ichael returne t' enns-lvania ail- t' ten t' his livest'c /ut

c'ntinue t' sta- &ith Lucina at the +ansi'nh'use /ecause she turne 'ut t'

have t-ph'i *ever. %&' &ees later, ichael ca+e '&n &ith t-ph'i *ever as &ell.He su/se;uentl- ie, intestate. +r' %ennant (e*enant), the a+inistrat'r '*

ichael=s pers'nal estate, istri/ute it in acc'rance &ith 3est Airinia la&, &hich

ave ever-thin t' Lucina. ichael=s /r'thers an sisters sue %ennant an

Lucina in a 3est Airinia circuit c'urt, aruin that enns-lvania la&, &hich &'ul

entitle the+ t' hal* '* ichael=s estate, sh'ul appl-. %he- appeale the c'urt=s

is+issal '* their clai+.


19/34

:ule '* La&

%he rule '* la& is *'r +e+/ers 'nl-. %' access this secti'n, please l'in 'r ive

ui+/ee a tr-, itQs *ree t' et starte.

Issue

%he issue secti'n is *'r +e+/ers 'nlan inclues the isp'sitive leal issue in the

case phrase as a ;uesti'n. %' access this secti'n, please l'in 'r ive ui+/ee a

tr-, itQs *ree t' et starte.

H'lin an :eas'nin (Sn-er, .)

%he h'lin an reas'nin secti'n is *'r +e+/ers 'nlan inclues$

0 >-es? 'r >n'? ans&er t' the ;uesti'n *ra+e in the issue secti'n

0 su++ar- '* the +a'rit- 'r pluralit- 'pini'n, usin the C:0C +eth' an

%he pr'ceural isp'siti'n (e.. reverse an re+ane, a@r+e, etc.).

Ya+aa vs. Yasua

Ya+aa C'rp. v. Yasua Insurance C'., Lt., '. "981P!<

"n 7istrict, 4 une 1999

Y0070 C::0%I an Y0070 0:IC0, IC.,

laintiFs0ppellees,

v.

Y0SU70 #I: 07 0:I ISU:0C C0Y, L%7., an %H Y0SU70 CL0IS

S:AIC, IC.,

7e*enants0ppellants.


20/34

0ppeal *r'+ the Circuit C'urt '* Jane C'unt-.

'. 96:416

H'n'ra/le atric . 7i2'n, ue, resiin.

US%IC CL3LL elivere the 'pini'n '* the c'urt$

7e*enants, Yasua #ire V arine Insurance C'+pan-, Lt. (Yasua #ire), an %he

Yasua Clai+s Service, Inc. (Yasua Clai+s) (c'llectivel-, e*enants), appeal *r'+

an 'rer '* the circuit c'urt '* Jane C'unt- rantin su++ar- u+ent in *av'r '*plaintiFs, Ya+aa C'rp'rati'n (Ya+aa) an Ya+aa 0+erica, Inc. (Ya+aa

0+erica) (c'llectivel-, plaintiFs), 'n c'unt I '* plaintiFsQ rst a+ene c'+plaint.

n appeal, e*enants c'nten that the trial c'urt err'ne'usl- re*use t' en*'rce a

*'ru+selecti'n clause, a ch'ice'*la& clause, an a p'lluti'n e2clusi'n clause an

err'ne'usl- struc p'rti'ns '* t&' '* e*enantsQ a@avits. 3e reverse an re+an

&ith irecti'ns /ase 'n the *'ru+selecti'n clause.

#0C%U0L 0CJG:U7 07 :C7U:0L HIS%:Y

n ct'/er "5, 1994, an air'perate iaphra+ pu+p, +anu*acture /- Ya+aa

an purchase /- C3C #luis, Inc., O/Oa Cullian 3ater C'niti'nin (C3C), t'

pu+p aci an caustic s'luti'ns *r'+ t&' separate tans t' reenerate spent &ater

puricati'n s-ste+s, *aile. %he pu+pQs *ailure resulte in the release '* aci an

caustic s'luti'ns that estr'-e the +etallic parts '* the reenerati'n s-ste+

encl'se &ithin a c'ncrete retenti'n &all. In aiti'n, the release pr'uce an aci

vap'r that travele thr'uh the interi'r '* C3CQs /uilin, a+ain electrical,

+echanical, +etallic, an 'ther structures. 3hen the retenti'n &all evel'pe a

crac, the aci als' spille 'nt' the +ain plant R''r an int' the rain t' the cit-se&er s-ste+.

n ct'/er 1, 1996, C3C le a c'+plaint in the circuit c'urt '* C'' C'unt-

aainst plaintiFs, a+'n 'thers, allein strict pr'uct lia/ilit-, /reach '* the


21/34


22/34

n 7ece+/er 1", 1996, plaintiFs le a c'+plaint *'r eclarat'r- u+ent an

'ther relie* aainst e*enants, an e*enants le a secti'n "619 (!


23/34

ut- t' e*en an ut- t' ine+ni*- in c'unts I an II. laintiFs als' /r'uht

causes '* acti'n *'r /reach '* c'ntract in c'unts III an IA an causes '* acti'n

uner secti'n 155 '* the Illin'is Insurance C'e ("15 ILCS 5O155 (3est 1996)) an

the C'nsu+er #rau an 7eceptive usiness ractices 0ct (C'nsu+er #rau 0ct)

(815 ILCS 5P5O1 et se;. (3est 1996)) in c'unts A an AI.

%herea*ter, e*enants le a +'ti'n t' rec'nsier the trial c'urtQs une "5, 199!,

an ul- "1, 199!, 'rers an alternativel- s'uht certicati'n t' appeal. ue

7unn enie the +'ti'n.

7e*enants then le their ans&ers an a@r+ative e*enses t' plaintiFsQ rst

a+ene c'+plaint. laintiFs later le a +'ti'n *'r su++ar- u+ent 'n c'unt I

'* their rst a+ene c'+plaint, an e*enants s'uht su++ar- u+ent 'n all

c'unts '* the rst a+ene c'+plaint.

n arch 4, 1998, ue 7i2'n re;ueste that the parties *urther /rie* the *'ru+

selecti'n clause issue. 0*ter the parties /rie*e the issue, this c'urt enie a

petiti'n *'r leave t' appeal the *'ru+selecti'n clause issue, an ue 7i2'n

inicate that he &'ul c'nsier the issue as part '* the +'ti'ns *'r su++ar-

u+ent. ue 7i2'n then rante plaintiFsQ +'ti'n. :earin the *'ru+

selecti'n clause, ue 7i2'n state that ue 7unn ha previ'usl- rule that the

clause &as unen*'rcea/le an that this c'urt ha ecline t' revie& the issue 'n an

interl'cut'r- /asis. 7e*enants appeale.

S%070:7 # :AI3

%he isp'siti'n '* a su++ar- u+ent +'ti'n is n't iscreti'nar- an the

stanar '* revie& is e n'v'. #lint v. C'urt 0pp'inte Special 0v'cates '* 7u ae

C'unt-, Inc., "85 Ill. 0pp.


24/34

0 *'ru+selecti'n clause in a c'ntract is pri+a *acie vali an sh'ul /e en*'rce

unless the 'pp'sin part- sh'&s that en*'rce+ent &'ul c'ntravene the str'n

pu/lic p'lic- '* the state in &hich the case is /r'uht (aher V 0ss'ciates, Inc. v.

ualit- Ca/inets, "6! Ill. 0pp.


25/34

%' eter+ine &hether a *'ru+selecti'n clause is unreas'na/le, this c'urt sh'ul

c'nsier the *'ll'&in *act'rs$ (1) &hich la& 'verns the *'r+ati'n an c'nstructi'n

'* the c'ntract (") the resienc- '* the parties inv'lve (


26/34

0 c'rp'rati'n is a resient '* the state 'r c'untr- uner &h'se la&s it &as

'ranize. Lelanc v. G.7. Searle V C'., 1!8 Ill. 0pp.


27/34

:earin inc'nvenience, Illin'is is inc'nvenient *'r Yasua #ire. apan, h'&ever, is

n't inc'nvenient t' Ya+aa, Yasua #ire, 'r Yasua Clai+s. 0iti'nall-, Ya+aa

0+ericaQs irect'rs resie in apan an h'l +eetins at Ya+aaQs hea;uarters in

apan. 're'ver, Ya+aa 0+erica &as n't resp'nsi/le *'r purchasin eneral

lia/ilit- insurance rather, Ya+aa purchase the eneral lia/ilit- insurance p'lic-

'n Ya+aa 0+ericaQs /ehal*. #urther+'re, the clause pr'vies Ya+aa &ith theassurance that its pr'ucts istri/ute ar'un the &'rl &ill /e c'vere uner 'ne

uni*'r+ la& leain t' certaint-, c'nsistenc-, an c'nvenience.

6. arainin '&er

%here is n' evience in the rec'r that the p'lic- &as n't e;uall- /araine *'r.

ase 'n the nu+/er '* pr'ucts c'vere, the c'+ple2it- '* th'se pr'ucts, the

nu+/er '* aiti'nal insures, an the l'cati'n '* istri/ut'rs &'rl&ie, it is sa*et' presu+e that Ya+aa is a s'phisticate insure.

ase 'n the *act'rs enu+erate in Calanca, there is little evience that

en*'rce+ent '* the *'ru+selecti'n clause &'ul /e unreas'na/le. #urther+'re,

there is n' evience in the rec'r that &'ul e+'nstrate that plaintiFs &'ul /e

enie their a- in c'urt.

III. ULIC LICY

laintiFs als' arue that the *'ru+selecti'n clause vi'lates Illin'is pu/lic p'lic-.

0cc'rin t' plaintiFs, TDtEhe *una+ental pu/lic p'lic- at stae in the present

acti'n is t' pr'tect insures an inure thir parties in an eF'rt t' +ae sure that

there is c'verae availa/le *'r a iven clai+,T citin 7C lectr'nics, Inc. v.

+pl'-ers 'ern Li*e C'., 9P Ill. 0pp.


28/34

p'lic- pr'visi'ns ilute 'r i+inish an- statut'r- pr'visi'ns in the Illin'is Insurance

C'e. In c'ntrast, in 7C lectr'nics, the insurance c'+pan- arue that the p'lic-

lanuae re;uirin a rene&al pre+iu+ t' have /een pai &ithin


29/34

Illin'is, "14 Ill. 0pp.


30/34

Illin'is la&. #'r instance, apanese la& alleel- 'es n't pr'vie *'r *ees, c'sts, an

e2e+plar- a+aes as pr'vie *'r uner secti'n 155 '* the Illin'is Insurance

C'e. In aiti'n, apanese la& alleel- 'es n't have re+eies si+ilar t' the

statut'r- re+eies availa/le t' c'nsu+ers uner the C'nsu+er #rau 0ct. laintiFs

then arue that, as a result, apanese la& 'es n't aF'r the sa+e pr'tecti'ns t'

plaintiFs as Illin'isQ la&. n ul- "1, 199!, ue 7unn aree &ith this aru+ent&hen he rule that TIllin'is pu/lic p'lic- re;uires that *'ru+ selecti'n clause DsicE /e

ee+e unen*'rcea/le in that pers'ns an entities livin an 'in /usiness in

Illin'is &'ul /e re;uire t' pr'cee in apan an uner apanese la& &here c'sts

an att'rne- *ees incurre &'ul n't /e c'+pensa/le.T

%he *act that an internati'nal transacti'n +a- /e su/ect t' la&s an re+eies

iFerent *r'+ 'r less *av'ra/le than th'se '* the Unite States is n't al'ne a vali

/asis t' en- the en*'rce+ent '* *'ru+selecti'n clauses. 'nn- v. S'ciet- '*

Ll'-Qs, < #.


31/34

/et&een a sales representative an principal purp'rtin t' &aive an- '* the

pr'visi'ns '* this 0ct shall /e v'iT (8"P ILCS 1"PO" (3est 199")). ase 'n this

pr'visi'n, the c'urt *'un that the leislature &as ann'uncin *una+ental pu/lic

p'lic- pr'tectin sales representatives. In the present case, plaintiFs ' n't irect

us t' a si+ilar pr'visi'n in the Illin'is Insurance C'e, an &e &ere una/le t' l'cate

a si+ilar pr'visi'n 'urselves.

3e n'te that plaintiFs als' arue that e*enantsQ reliance 'n *eeral case la& is

inappr'priate /ecause the cite *eeral cases *'ll'& the strictl- *eeral c'++'nla&

test *'r appl-in *'ru+selecti'n clauses, a test that plaintiFs escri/e as a +'re

'ner'us stanar. ne '* the cases plaintiFs cite *'r this pr'p'siti'n is the .S.

re+en case. Illin'is c'urts, h'&ever, a'pte the anal-sis in that case l'n a'

an have since relie 'n *eeral case la& &hen interpretin *'ru+selecti'n clauses.

See, e.., Calanca, 15! Ill. 0pp.


32/34

the release '* +eth-l is'c-anate as in 7ece+/er 1984 *r'+ Uni'n Car/ieQs

h'pal plant 'n the r'uns '* *'ru+ n'n c'nveniens. S''n a*ter the accient, the

rst '* 145 class acti'ns, inv'lvin appr'2i+atel- "PP,PPP plaintiFs, &as le in a

*eeral istrict c'urt. %he c'+plaints &ere c'ns'liate in the S'uthern 7istrict '*

e& Y'r in une 1985. In the +eanti+e, Inia enacte the h'pal Gas Lea

7isaster (r'cessin '* Clai+s) 0ct in arch 1985, rantin the Uni'n '* Inia (UI)the e2clusive riht t' represent the victi+s. In 0pril 1985, the UI le a c'+plaint

in the S'uthern 7istrict '* e& Y'r 'n /ehal* '* all victi+s '* the accient. In a-

1986, the istrict c'urt is+isse the c'ns'liate c'+plaints 'n the r'uns '*

*'ru+ n'n c'nveniens, su/ect t' three c'niti'ns. %he appellate c'urt rst

eter+ines that plaintiFsQ ch'ice '* a Unite States *'ru+ is entitle t' little 'r n'

e*erence, since all /ut a *e& '* the "PP,PPP plaintiFs are Inian citizens &h' have

replace their 0+erican c'unsel &ith the UI, &hich n'& &ishes t' pr'cee in

Inian c'urts. %he istrict c'urtQs nin that Inian c'urts pr'vie a reas'na/l-

ae;uate alternative *'ru+ &as n't clearl- err'ne'us. laintiFsQ c'ntenti'n that the

istrict c'urt sh'ul retain urisicti'n /ecause Uni'n Car/ie has its principal place

'* /usiness in the Unite States is n't persuasive, since Uni'n Car/ie has

c'nsente t' Inian urisicti'n. laintiFsQ asserti'n that the +'st pr'/ative

evience 'n nelience an causati'n is l'cate in the Unite States is n't

supp'rte /- the rec'r. %he principal &itnesses an 'cu+ents are l'cate al+'st

entirel- in Inia. %he c'urt reects plaintiFsQ aru+ent that trans*er '* the cases t'

Inia &ill e'parize a \


33/34

is+isses 'n the r'uns '* *'ru+ n'n c'nveniens. 0n- enial '* ue pr'cess /-

the Inian c'urts can /e raise as a e*ense t' an- atte+pts t' en*'rce an Inian

u+ent in Unite States c'urts. #urther, the lanuae '* the istrict c'urtQs

c'niti'n, &hich re;uires that the u+ent Tc'+p'rt &ith +ini+al re;uire+ents '*

ue pr'cess,T +a- /e +isc'nstrue as pr'viin *'r a lesser stanar than

0+erican c'urts &'ul 'ther&ise re;uire. %he c'urt h'ls that the istrict c'urt als'erre in re;uirin Uni'n Car/ie t' c'nsent t' isc'ver- /- plaintiFs in acc'rance

&ith the #eeral :ules '* Civil r'ceure &hen Uni'n Car/ie is c'nne t' the +'re

li+ite isc'ver- uner Inian la&. asic ustice re;uires that /'th sies have e;ual

access t' evience.

Saui 0ra/ian 0irlines vs. C'urt '* 0ppeals

"9! SC:0 469 ] C'nRict '* La&s ] rivate Internati'nal La& ] Situs ] L'cus 0ctus

ilar's 'raa &as &'rin as a ste&aress *'r Sauia 0ra/ian 0irlines. In 199P,

&hile she an s'+e c'&'rers &ere in a la-'ver in aarta, In'nesia, an 0ra/ c'

&'rer trie t' rape her in a h'tel r''+. #'rtunatel-, a r''+/'- hear her cr- *'r

help an t&' '* her 0ra/ c'&'rers &ere arreste an etaine in In'nesia. Later,

Sauia 0irlines reassine her t' &'r in their anila '@ce. 3hile &'rin in

anila, Sauia 0irlines avise her t' +eet &ith a Sauia 0irlines '@cer in Saui.

She i /ut t' her surprise, she &as /r'uht t' a Saui c'urt &here she &as

interr'ate an eventuall- sentence t' 5 +'nths i+pris'n+ent an "89 lashes

she alleel- vi'late usli+ cust'+s /- part-in &ith +ales. %he rince '* aah

't &in '* her c'nvicti'n an the rince eter+ine that she &as &r'n*ull-

c'nvicte hence the rince a/s'lve her an sent her /ac t' the hilippines.

Sauia 0irlines later 'n is+isse 'raa. 'raa then sue Sauia 0irlines *'r

a+aes uner 0rticle 19 an "1 '* the Civil C'e. Sauia 0irlines le a +'ti'n t'

is+iss 'n the r'un that the :%C has n' urisicti'n 'ver the case /ecause the

applica/le la& sh'ul /e the la& '* Saui 0ra/ia. Sauia 0irlines als' pra-e *'r

'ther relie*s uner the pre+ises.

ISSU$ 3hether 'r n't Sauia 0irlines= c'ntenti'n is c'rrect.

HL7$ '. #irstl-, the :%C has ac;uire urisicti'n 'ver Sauia 0irlines &hen the

latter le a +'ti'n t' is+iss &ith petiti'n *'r 'ther relie*s. %he asin *'r 'ther

relie*s eFectivel- ase the c'urt t' +ae a eter+inati'n '* Sauia 0irlines=s rihts

hence a su/+issi'n t' the c'urt=s urisicti'n.


34/34

Sec'nl-, the :%C has ac;uire urisicti'n 'ver the case /ecause as allee in the

c'+plaint '* 'raa, she is /rinin the suit *'r a+aes uner the pr'visi'ns '*

'ur Civil La& an n't '* the 0ra/ian La&. 'raa then has the riht t' le it in the

C :%C /ecause uner the :ules '* C'urt, a plaintiF +a- elect &hether t' le anacti'n in pers'na+ (case at /ar) in the place &here she resies 'r &here the

e*enant resies. /vi'usl-, it is &ell &ithin her riht t' le the case here /ecause

i* she=ll le it in Saui 0ra/ia, it &ill /e ver- isavantae'us *'r her (an '* c'urse,

aain, hilippine Civil La& is the la& inv'e).

%hirl-, 'ne i+p'rtant test *act'r t' eter+ine &here t' le a case, i* there is a

*'rein ele+ent inv'lve, is the s' calle >l'cus actus? 'r &here an act has /een

'ne. In the case at /ar, 'raa &as alrea- &'rin in anila &hen she &as

su++'ne /- her superi'r t' ' t' Saui 0ra/ia t' +eet &ith a Sauia 0irlines

'@cer. She &as n't in*'r+e that she &as 'in t' appear in a c'urt trial. Clearl-,

she &as e*raue int' appearin /e*'re a c'urt trial &hich le t' her &r'n*ul

c'nvicti'n. %he act '* e*rauin, &hich is t'rtu'us, &as c'++itte in anila an

this le t' her hu+iliati'n, +iser-, an suFerin. 0n appl-in the t'rts principle in

a c'nRicts case, the SC ns that the hilippines c'ul /e sai as a situs '* the t'rt

(the place &here the allee t'rti'us c'nuct t'' place).

conflicts of law cases a

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