KEVIN McNULTY, District Judge.
Natasha Ford, a citizen of Texas, brings this diversity action individually and on behalf of her child, C.F. (together, "Ford"). This matter comes before the court on the motion of defendant EF Explore America, Inc. ("EF") under 28 U.S.C. § 1404(a) to transfer venue to the U.S. District Court for the District of Massachusetts, pursuant to a contractual forum-selection clause. I find that the forum-selection clause is valid and enforceable as between EF and the plaintiff. The parties have failed, however, to consider the effect of the presence of two defendants who are not parties to the contract or its forum selection clause. Their presence might stand in the way of a transfer of venue that would otherwise be appropriate. Under recent Third Circuit case law, a different and rather complex analysis is required. I will therefore deny this motion without prejudice to refiling within 21 days. All defendants shall state their legal and factual positions on the motion to transfer. The parties will also be directed to clarify the facts pertinent to diversity jurisdiction, including the state of incorporation and principal place of business of the defendant corporations, and the citizenship of all members of Holiday Clark, LLC.
C.F. was 13 years old at the time of the events. This action arises from an educational tour to the New York area that took place in June 2017. Defendant EF, located in Massachusetts, is in the business of organizing and sponsoring tours. Defendant Holiday Clark, LLC ("Holiday Inn"), operates a lodging facility in Clark, New Jersey, where the children and parent chaperones stayed overnight during the tour. Defendant U.S. Security Associates, Inc. ("U.S. Security"), apparently a Georgia corporation with offices in New Jersey,
The issue here is whether venue of this case, or at least the portion of the case that is brought against EF, must be transferred to the U.S. District Court for the District of Massachusetts. EF moves to transfer the case pursuant to 28 U.S.C. § 1404(a), based on a forum-selection clause. That forum-selection clause was included in a Release and Agreement signed by Ford on behalf of herself and C.F. when they booked the tour on the website maintained by EF. The forum selection clause provides as follows:
(Release and Agreement ¶ 17).
EF says that a straightforward application of the forum selection clause dictates that it may be sued only in Massachusetts. Under Atlantic Marine Construction Co. v. U.S. District Court, ___ U.S. ___, 134 S.Ct. 568 (2013), the usual multifactor venue analysis is simplified when there is a forum-selection clause:
In re: Howmedica Osteonics Corp, 867 F.3d 390, 402 (3d Cir. 2017), cert. denied, 138 S.Ct. 1288 (2018).
This is not that "most unusual case." The forum-selection clause—as far as it goes, see infra—is valid and enforceable.
Of course, a prerequisite to enforcement of any contractual provision is that there be a valid contract. Contrary to plaintiffs' argument, I do not find any procedural unfairness that would undermine the agreement itself. When Ms. Ford booked the tour online, the transaction was blocked from going forward unless and until she affirmatively checked a box agreeing to two contracts. Those contracts, available by clicking a link, were the Booking Conditions and the Release and Agreement that contained the forum-selection clause. (DE 5-5) The consumer's attention would have been focused; this was not, e.g., a routine consumer purchase, but the booking of a tour which cost $2000 or more. There are no indicia of coercion or unequal bargaining power.
As noted in Howmedica, quoted supra, the forum preference of a plaintiff who agrees to a forum-selection clause is not entitled to weight. In addition, the private interests that usually figure in the venue analysis will not be considered.
Only public interests remain relevant. These may include "`the enforceability of the judgment'; `the relative administrative difficulty in the two fora resulting from court congestion'; `the local interest in deciding local controversies at home'; `the public policies of the fora'; and `the familiarity of the trial judge with the applicable state law in diversity cases.'" Homedica, 867 F.3d at 402 (quoting Jumara v. State Farm Ins. Co., 55 F.3d 873, 879 (3d Cir. 1995)). As to those public interests, Ford offers little. I have nothing before me regarding the relative congestion of the Massachusetts and New Jersey federal courts. As to familiarity with state law, I note that the contract between Ford and EF provides for the application of Massachusetts, not New Jersey law, so this factor tilts toward transfer. There is a general interest in deciding local controversies at home, and the alleged tort occurred in New Jersey; that interest is offset, however, by the fact that both Ford and EF are out-of-state parties.
Public policies of the states are a neutral factor. Ford cites New Jersey's "extraordinary" public interest in the protection of minors. In support, it cites statutory speed limits that apply in school zones. N.J. Stat. Ann. § 39:4-98. To me, New Jersey's interest seems not extraordinary, but fairly generic. It is true that the alleged abuse of this Texas plaintiff took place in New Jersey. Still, there is no reason to think that a Massachusetts forum would be any less solicitous of an out-of-state minor's safety. A transfer would not be likely to impair any public policy against the infliction of harm on children.
In short, there are no unusual factors at play that would justify the court's setting aside this garden-variety forum selection clause.
Neither Holiday Inn nor U.S. Security, however, is a party to the Release and Agreement that contains the forum selection clause. No party discusses whether the presence of those nonsignatory codefendants affects the transfer-of-venue issue. It does.
Last year, the U.S. Court of Appeals for the Third Circuit announced a complex "four-step framework" for deciding a change-of-venue motion when some, but not all, defendants are parties to a forum-selection clause. In re Howmedica Osteonics Corp., 867 F.3d 390, 403-05 (3d Cir. 2017), cert. denied, 138 S.Ct. 1288 (2018). Because Howmedica is fairly recent, I quote it at length, omitting footnotes and other material not essential to understanding:
Howmedica, 867 F.3d at 403-05. See also Piazza Family Trust v. Ciarrocchi, 2017 WL 5146007 (E.D. Pa. Nov. 6, 2017) (applying Howmedica, severing claims subject to forum-selection clause, and transferring them to the selected forum).
No party has addressed the Howmedica issue, i.e., the application of a forum-selection clause agreed to by some but not all parties. In this opinion, I have in effect decided Howmedica step one: The forum-selection clause is valid and enforceable as between Ford and EF, the parties who agreed to it. But I can go no farther. I will not attempt to extract findings on Howmedica steps two, three, and four from a presentation that was submitted without those factors in mind. Instead, I will order as follows:
Ford cites pre-Atlantic Marine case law, stating that a forum-selection clause will not be enforced where (1) it is the product of fraud or overreaching; (2) enforcement would violate a strong public policy of the forum; or (3) enforcement would result in litigation in a jurisdiction so seriously inconvenient as to be unreasonable. See Cadapult Graphic Systems, Inc. v. Tektronix, Inc., 98 F.Supp.2d 560, 564 (D.N.J. 2000); United Steele America Co. v. M/V Sanko Spruce, 14 F.Supp.2d 682, 686 (D.N.J. 1998). Although to some extent inconsistent with Atlantic Marine (they seem, for example, to consider private factors), these cases would not change the result, for the reasons stated in text, above. I would add only that the factor of convenience (strictly as between Ford and EF) does not weigh against transfer. The plaintiffs are from Texas, and defendant EF is in Massachusetts. Presumably, if this were a two-party case, there would be no particular inconvenience to plaintiffs in litigating the case in Massachusetts, as opposed to New Jersey. (Issues arising from the multiparty nature of the litigation will be addressed later. See infra.)