PARKER, Justice.
Shirley Spencer and Christy Gee petition this Court for a writ of mandamus directing the Greene Circuit Court to vacate its judgment granting the motion of K & K Excavating, LLC ("K & K"), to enforce a forum-selection clause and transferring the petitioners' action against K & K to the Tuscaloosa Circuit Court.
On February 27, 2007, Spencer contracted with K & K for the installation of a septic system at the petitioners' house in Eutaw. The petitioners separately contracted with S. Boyd, Inc. ("Boyd"), to conduct the excavation work necessary to install the septic system. It is undisputed that the work of installing the septic system was performed under a written agreement between Spencer and K & K ("the contract"). The contract included a forum-selection clause, which states that "[v]enue and jurisdiction shall strictly and only be in the courts of Tuscaloosa County, Alabama."
Following the installation of the septic system, the petitioners allege, they "began experiencing problems and noticing defects, incomplete work, inadequate work and other problems with their septic system and land." As a result, on July 30, 2008, the petitioners sued K & K and Boyd, along with several fictitiously named defendants, in the Greene Circuit Court, alleging breach of contract; breach of express warranty; breach of implied warranty of fitness, habitability, and merchantability; and negligence, under numerous theories. The petitioners filed an amended complaint on December 30, 2008, adding Richard Stephen Boyd, the owner of Boyd, as a defendant (Boyd and Richard Stephen Boyd are hereinafter referred to collectively as "the Boyd defendants").
On October 17, 2008, K & K answered the petitioners' complaint, asserting improper venue as a defense. Specifically, K & K argued that the forum-selection clause in the contract was applicable to the petitioners' claims. On the same day, K & K also initiated the discovery process by submitting its first set of interrogatories and
On July 22, 2009, the Boyd defendants answered the petitioners' amended complaint; the Boyd defendants made no argument concerning forum.
On November 4, 2010 — more than two years after K & K had filed its answer to the petitioners' complaint, in which K & K invoked the forum-selection clause — K & K filed its motion entitled "motion to transfer venue or, in the alternative, motion to enforce forum selection clause" ("the transfer motion").
On January 27, 2011, following numerous pretrial conferences, the Greene Circuit Court set the case for a trial scheduled for April 4, 2011.
On February 15, 2011, the petitioners filed a response to the transfer motion arguing that K & K had waived its right to invoke the forum-selection clause as a result of K & K's failure to timely file the transfer motion. The petitioners also argued that they would be prejudiced if their case was transferred out of the Greene Circuit Court because the case had already been set for trial and a transfer of the case would result in an unnecessary delay. The transfer motion was set for a hearing on March 23, 2011. On March 14, 2011, the parties filed a motion to continue the March 23, 2011, hearing on the transfer motion to allow the parties to attempt to mediate the case; this motion was also presented before the Greene Circuit Court on the day of the hearing. The parties also filed a motion to continue the April 4, 2011, trial. The trial court granted both motions on March 29, 2011.
When mediation of the case proved unsuccessful, the Greene Circuit Court ordered another pretrial conference to be held on August 25, 2011. On August 23, 2011, K & K filed a reply brief in support of the transfer motion; the petitioners responded. At the August 25, 2011, pretrial conference, the Greene Circuit Court heard oral argument on the transfer motion. On August 31, 2011, the Boyd defendants filed a motion to join the transfer motion. On October 30, 2011, the Greene Circuit Court entered an order granting the transfer motion as to K & K and severing the petitioners' claims against K & K from those asserted against the Boyd defendants; the Greene Circuit Court denied the transfer motion as to the Boyd defendants.
On November 17, 2011, Mr. Boyd filed a "suggestion of bankruptcy" in the Greene Circuit Court, which stated:
On November 29, 2011, the Boyd defendants filed a motion to alter, amend, or vacate the Greene Circuit Court's October 30, 2011, order, seeking to have the claims against them transferred to the Tuscaloosa Circuit Court as well. Before the Greene Circuit Court ruled on the Boyd defendants' motion to alter, amend, or vacate, the petitioners petitioned this Court for a writ of mandamus directing the Greene
As a result of Mr. Boyd's filing a petition for bankruptcy, the petitioners filed a motion to dismiss Mr. Boyd as a defendant, without prejudice, which the Greene Circuit Court granted on January 26, 2012. The petitioners also state in their reply brief that they "withdraw their [p]etition as to their claims against Mr. Boyd individually."
Ex parte Fuller, 955 So.2d 414, 415 (Ala. 2006).
Initially, Boyd argues that this Court lacks jurisdiction over the petition based on the automatic stay entered pursuant to 11 U.S.C. § 362 at the time Mr. Boyd filed his suggestion of bankruptcy on November 17, 2011. We disagree. The automatic stay entered in the Greene Circuit Court as a result of Mr. Boyd's filing his suggestion of bankruptcy applied only to litigation against Mr. Boyd, not against his solvent codefendants. In Bradberry v. Carrier Corp., 86 So.3d 973 (Ala.2011), this Court, dealing with a similar situation, stated:
Bradberry, 86 So.3d at 981-82 (footnote omitted).
It is well established that the automatic stay entered pursuant to § 362 pertained only to litigation against Mr. Boyd, not his solvent codefendants. Therefore, the petitioners' filing of their petition with this Court was a nullity as to Mr. Boyd, but nothing divested this Court of jurisdiction over the petition as to the solvent parties, K & K and Boyd. Further, Mr. Boyd has since been dismissed as a party in the case below, and the petitioners have withdrawn their petition as to their claims against Mr. Boyd. Clearly, we have jurisdiction over the petition insofar as it concerns K & K and Boyd, Mr. Boyd's solvent codefendants.
We now turn to the merits of the petition. The petitioners do not challenge the validity of the forum-selection clause. Instead, the petitioners argue only that K & K waived its right to enforce the forum-selection clause "by defending the lawsuit in Greene County for two years, through multiple pretrial conferences and completion of party discovery." We agree.
It is a well established principle of Alabama law that "[p]arties are free to contract as they will, provided they contract within the law." Perkins v. Skates, 220 Ala. 216, 218, 124 So. 514, 515 (1929). Forum-selection clauses are not against public policy in Alabama, and parties are free to contractually agree to a specified forum in which all litigation is to be litigated. See Brown v. Alabama Chem. Co., 207 Ala. 215, 216, 92 So. 260, 260-61 (1922)(recognizing the validity of forum-selection clauses). However, a party may waive its right to enforce a contractual
Thus, in Textron, we made it clear that a party may waive its right to enforce a forum-selection clause, as it may with other contract provisions, by evincing an intention to do so. We note that no rigid rule exists for determining what constitutes a waiver of the right to enforce a forum-selection clause; the determination whether there has been a waiver must, instead, be based on the particular facts of each case.
Under the facts of this case, K & K's substantial invocation of the litigation process in Greene County clearly evinced its intention to abandon its right to enforce the forum-selection clause in favor of the judicial process. Cf. Crews v. National Boat Owners Ass'n Marine Ins. Agency, Inc., 46 So.3d 933, 939 (Ala.2010) (holding that "`a party may waive its right to arbitrate a dispute if it substantially invokes the litigation process'" (quoting Companion Life Ins. Co. v. Whitesell, 670 So.2d 897, 899 (Ala.1995))); In re ADM Investor Servs., Inc., 304 S.W.3d 371, 374 (Tex.2010)(analogizing a party's waiver of its rights under arbitration agreement by the party's substantial invocation of the litigation process to a party's waiver of its rights under a forum-selection clause); Vimar Seguros y Reaseguros, S.A. v. M/V Sky Reefer, 515 U.S. 528, 548 n. 7, 115 S.Ct. 2322, 132 L.Ed.2d 462 (1995) (recognizing that "[t]he only ground on which one might distinguish [arbitration and forum-selection] clauses is that another federal statute, the Federal Arbitration Act, makes arbitration clauses enforceable, whereas no analogous federal statute exists for forum selection clauses"); and Scherk v. Alberto-Culver Co., 417 U.S. 506, 519, 94 S.Ct. 2449, 41 L.Ed.2d 270 (1974)("An agreement to arbitrate before a specified tribunal is, in effect, a specialized kind of forum-selection clause that posits not only the situs of suit but also the procedure to be used in resolving the dispute").
The petitioners sued K & K, among others, alleging breach of contract and breach of express warranty, as well as other claims. In its answer to the petitioners'
Under the circumstances presented, we conclude that K & K waived its contractual right to enforce the forum-selection clause based on K & K's intention to abandon said right, evidenced by its substantial invocation of the litigation process. Therefore, we grant the petition and direct the trial court to vacate its order granting the transfer motion.
PETITION GRANTED; WRIT ISSUED.
MALONE, C.J., and WOODALL, STUART, BOLIN, MURDOCK, SHAW, MAIN, and WISE, JJ., concur.
We note that Boyd also filed a motion to strike one of the attachments to the petition, a document entitled "Alabama Unified Judicial System, Fiscal Year 2010 Annual Report & Statistics," on the basis that the report had not been submitted to the Greene Circuit Court for its consideration. We will not consider the report in our consideration of the petition.