JESSE M. FURMAN, District Judge:
This action arises out of claims by Plaintiff Brian Anthony Martinez against his former employer, Bloomberg LP ("Bloomberg"), and two Bloomberg employees, Andrew Lack and Catriona Henderson. Specifically, in his complaint, filed on October 24, 2011, Plaintiff asserts a claim against Defendant Bloomberg for unlawful termination in violation of the Americans with Disabilities Act (the "ADA"), 42 U.S.C. § 12111 et seq., and claims against all Defendants for violations of the New York State Human Rights Law ("NYSHRL"), 15 N.Y. Exec. Law § 296 et seq., and the New York City Human Rights Law ("NYCHRL"), 8 N.Y.C. Admin. Code § 8-502(a) et seq. Relying on a forum selection clause in the employment agreement between Martinez and Bloomberg, Defendants Bloomberg and Lack now move, pursuant to Rule 12(b)(3) of the Federal Rules of Civil Procedure, for dismissal of the complaint in its entirety for improper venue. In the alternative, Defendants Bloomberg and Lack move, pursuant to Rule 12(b)(1) of the Federal Rules of Civil Procedure, for dismissal of the NYSHRL and NYCHRL claims for lack of subject matter jurisdiction on the ground that the alleged discrimination had no "impact" within New York.
Where, as here, a defendant moves to dismiss for improper venue pursuant to Rule 12(b)(3), a court may consider evidence outside the four corners of the complaint, including affidavits and other documentary evidence. See, e.g., Gulf Ins. Co. v. Glasbrenner, 417 F.3d 353, 355 (2d Cir. 2005); Cartier v. Micha, Inc., No. 06 Civ. 4699(DC), 2007 WL 1187188, at *2 (S.D.N.Y. Apr. 20, 2007). Accordingly, the following facts are drawn from the complaint and the affidavits submitted by the parties, and are construed in the light most favorable to the Plaintiff. See Phillips v. Audio Active, Ltd., 494 F.3d 378, 384 (2d Cir.2007) (noting that when a district court relies on pleadings and affidavits to grant a motion to dismiss on the
Bloomberg is a privately held financial software, media, and data company with its principal place of business in New York City. (Compl. ¶ 2). At all times relevant to this action, Defendant Lack was the chief executive officer of Bloomberg's Multimedia Division, and Defendant Henderson was the regional head of Bloomberg's human resources department in the United Kingdom. (Id. ¶¶ 3-4). In September 1999, Martinez began working for Bloomberg as a freelance producer, and in April 2000, he began full-time employment in the company's New York office. (Id. ¶¶ 10-11). In early 2005, after a three-year stint in Bloomberg's Tokyo office, Martinez was reassigned to Bloomberg's London office. (Id. ¶ 12).
In connection with his relocation to the United Kingdom, Martinez signed a new employment contract with Bloomberg's London office on February 21, 2005 (the "Agreement"), (Defs.' Mem. of Law in Supp. of Mot. to Dismiss ("Defs.' Mem.") 3). To the extent relevant here, the Agreement expressly designated Bloomberg's London office as Martinez's "normal place of business" (Asman Decl. Ex. 1 § 1.2); provided for circumstances under which Martinez's employment could be terminated (id. § 10); and set forth grievance procedures that governed the employment relationship. (Id. § 9). Most relevant for present purposes, the Agreement also contained a forum selection and choice of law provision. (Id. § 14.1). The clause provided, in relevant part, that the Agreement "shall be interpreted and construed in accordance with English law and any dispute arising hereunder shall be subject to the exclusive jurisdiction of the English courts." (Id. § 14.1).
Martinez was promoted several times during his tenure at Bloomberg, eventually becoming Managing Director of Bloomberg Television International for Asia, Europe, the Middle East, and Africa, but in November 2010, his career "hit a brick wall." (Compl. ¶¶ 17, 21). A month or so earlier, Martinez, who is gay, had revealed to Henderson that he had been physically abused by his domestic partner. (Id. ¶¶ 22-23). After meeting with two separate doctors to receive treatment for his injuries, in late November 2010, Martinez met with Lack, who insisted that Martinez take a leave from work. (Id. ¶¶ 24, 27-29). Martinez had already planned to be on vacation from December 16, 2010, until January 3, 2011, but at Lack's insistence, he took an unofficial leave of absence beginning on November 29, 2010. (Id. ¶ 30). In mid-December, while on leave, Martinez received the results of his annual company review. Although Martinez's performance was rated "exceptional," his bonus was not consistent with Bloomberg's historical pay practice or with his 2010 bonus. (Id. ¶¶ 34-35).
On January 4, 2011, Martinez returned to work. (Id. ¶ 36). The following month, Henderson and Lack met with Martinez and expressed concern that Martinez was "unwell." (Id. ¶¶ 43-44). According to the complaint, Lack and Henderson suggested to Martinez that the abuse he suffered may have "seriously impacted" his ability to perform his job responsibilities. (Id. ¶ 47). Henderson recommended that Martinez take additional medical leave for at least thirty days, which he did, beginning on February 15, 2011. (Id. ¶¶ 50, 53). In late March 2011, Martinez's doctor cleared him to return to work, but on April 1, 2011, Henderson told Martinez that it "may be better" for him to wait until May to return to work. (Id. ¶¶ 54, 55).
It appears that Martinez never returned to Bloomberg. (See Asman Decl. Ex. 2). While on medical leave, Martinez learned
On October 24, 2011, Plaintiff filed the complaint in this case against Defendants Bloomberg, Lack, and Henderson, asserting a claim against Bloomberg under the ADA and claims against all three Defendants under the NYSHRL and NYCHRL. Three days later, Martinez filed a separate claim with the United Kingdom's Employment Tribunal ("UK Employment Tribunal"), challenging the legality of his termination under English law (the "UK Proceeding"). (Asman Decl. ¶ 18). In his complaint in the UK Proceeding, Martinez alleged unfair dismissal, unlawful deduction of wages, and detrimental dismissal because of a protected disclosure. (See id. ¶ 19; id. Ex. 8). Martinez did not assert any claims for discrimination, despite his attorney's earlier e-mail to Bloomberg and the fact that the claim form he used to initiate the action explicitly asked whether he wished to assert claims for discrimination based on, among other things, sexual orientation or disability. (See id. ¶ 20; id. Ex. 8, at 9).
In January 2012, the UK Employment Tribunal held a "Directions Hearing," which is similar to a status conference, to discuss various procedural and scheduling matters in the UK Proceeding. (Defs.' Mem. 16). Although Defendants Bloomberg and Lack had notified Plaintiff and this Court months earlier that they intended to move to dismiss the current action on the basis of the forum selection clause (Docket No. 4), at the Directions Hearing, Martinez did not request leave to add any discrimination claims. (Defs.' Mem. 16). He did, however, submit an application to stay the UK Proceeding at least until the instant motion to dismiss was decided by this Court. (Pl.'s Mem. of Law in Opp'n to Defs.' Mot. to Dismiss ("Pl.'s Opp'n Mem.") 9-10). This application was denied and the UK Proceeding was scheduled to proceed on an expedited basis, with a hearing set for April 2012. (Id. at 10). Citing the prohibitively high cost of pursuing his claims in the United Kingdom, Martinez subsequently withdrew his claims in the UK Proceeding. (Id.).
Defendants Bloomberg and Lack contend that Plaintiff's claims should be dismissed because the Agreement's forum selection clause required Plaintiff to bring this action in the United Kingdom. Plaintiff does not dispute that the forum selection clause is valid and, by its terms, mandatory. Instead, he argues that the clause does not apply to his claims of discrimination and that, if it does apply to such claims, application of the clause in this case would be unreasonable or unjust. The Court agrees with Defendants.
As the Supreme Court and the Second Circuit have made clear, there is a strong federal policy in favor of enforcing forum selection clauses. See, e.g., M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 9-10, 12, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972) (holding that courts should "give
The Second Circuit has adopted a four-part test to determine whether an action should be dismissed on the basis of a forum selection clause. See Phillips, 494 F.3d at 383-84.
In the present case, there is no dispute that the first two parts of the test are met. The Agreement between Martinez and Bloomberg mandates that "any dispute arising hereunder shall be subject to the exclusive jurisdiction of the English courts" (Asman Decl. Ex. 1 § 14.1), and Plaintiff concedes that the provision was "reasonably communicated" to him. (Pl.'s Mem. of Law 10). Instead, Martinez contends, first, that his discrimination claims are not subject to the forum selection clause because they do not "aris[e]" under the Agreement and, second, that enforcement of the forum selection clause would be unfair or unreasonable under the circumstances. The Court will address each argument in turn.
As an initial matter, the Court must determine what law governs interpretation of the forum selection clause. Determining the scope of a forum selection
The applicability of English law is significant in this case for two reasons. First, whereas a statutory employment discrimination claim does not depend on the existence of a contract under American law, see, e.g., Cronas v. Willis Grp. Holdings, Ltd., No. 06 Civ. 15295(GEL), 2007 WL 2739769, at *9-13 (S.D.N.Y. Sept. 17, 2007), that is not the case under English law. Instead, under the Equality Act 2010 (the "Equality Act" or "Act") — the English analogue to the ADA, the NYSHRL, and the NYCHRL — a contract is a precondition to bringing the types of claims that Martinez brings in this case. See Equality Act 2010, c. 15, § 83(2) (U.K.) (defining "employment" as "employment under a contract of employment, a contract of apprenticeship or a contract personally to do work") (emphasis added); see also id. §§ 39-40 (protecting employees from discrimination and harassment in employment); cf. Muschett v. HM Prison Servs., [2010] EWCA (Civ) 25[24], [39]-[40] (holding, with respect to a predecessor of the Equality Act, that the claimant could not state a claim for employment discrimination without establishing that a contractual relationship existed between her and her employer).
Second, under English law, forum selection clauses are construed very broadly. In Fiona Trust & Holding Corporation v. Privalov, [2007] EWCA (Civ) 20, [5], for example, the Court of Appeal considered a contractual clause referring "any dispute arising under this charter" to arbitration. Lord Justice Longmore, writing for the Court, concluded that "[although in the past the words `arising under the contract' have sometimes been given a narrower meaning, that should no longer continue to be so." Id. ¶ 18. Instead, the Court held broadly that, under English law, "any jurisdiction or arbitration clause in an international commercial contract should be liberally construed. The words `arising out of should cover "every dispute except a dispute as to whether there was ever a contract at all.' ..." Id. (citation omitted) (emphasis added). The House of Lords upheld this determination on appeal, holding that unless the language of an arbitration clause makes clear that certain questions are intended to be excluded from an
Significantly, although the clause at issue in Fiona Trust pertained to arbitration, the Court's language and reasoning extended to forum selection provisions as well. Lord Justice Longmore referred expressly to "any jurisdiction or arbitration clause." Fiona Trust, [2007] EWCA (Civ) 20, [18]. And in the House of Lords, Lord Hope of Craighead explained:
Fiona Trust, [2007] UKHL 40, [26]; see also Skype Techs. SA v. Joltid Ltd., [2009] EWHC (Ch) 2783, [14]-[17] (noting that Lord Hope "clearly regarded [forum selection] clauses and arbitration clauses as serving similar purposes with the result that their interpretation should be approached in the same way"). In the wake of Fiona Trust, therefore, English courts have construed forum selection clauses such as the one in this case "widely and generously." UBS AG v. HSH Nordbank AG, [2009] EWCA (Civ) 585, [60].
Although the question is a close one, these two factors — namely, the contractual basis for employment discrimination claims under English law and the broad construction given to forum selection clauses by English courts — compel the conclusion that Martinez's claims are indeed subject to the Agreement's forum selection clause.
In contending otherwise, Martinez makes several arguments. First, implicitly conceding that his claims would be subject to the forum selection clause if the Court's holding in Fiona Trust applied, Martinez contends that Fiona Trust is limited to international commercial contracts and does not apply in the employment
Autoclenz Ltd. v. Belcher and Others, [2011] UKSC 41, upon which Martinez relies (Pl.'s Opp'n Mem. 15; Declaration of Plaintiff's Expert Louise Skehan ¶¶ 32-33), does not suggest otherwise. In that case, a suit by car washers against their putative employer for payment of the minimum wage, the Court did say that "the relative bargaining power of the parties must be taken into account in deciding whether the terms of any written agreement in truth represent what was agreed and the true agreement will often have to be gleaned from all the circumstances of the case, of which the written agreement is only a part." Autoclenz, [2011] UKSC 41, [35]. The issue in Autoclenz, however, was not how to interpret the given terms of a contract, let alone a forum selection clause, but rather how to determine what the terms of the contracts at issue were in the first instance. Here, there is no dispute that the parties agreed to the forum selection clause as written; the only dispute is how the clause should be interpreted, and Autoclenz sheds no light on that question. Moreover, as the very existence of a clause governing the choice of law and forum selection makes clear, the Agreement at issue in this case — between a multinational corporation and a sophisticated international businessman who eventually became Managing Director of Bloomberg Television International for Asia, Europe, the Middle East, and Africa — is, in many respects, closer to the sort of international commercial contract considered in Fiona Trust than it is to the car washer contracts considered in Autoclenz.
Next, citing cases in which courts have held that parties may not deprive the UK Employment Tribunal of jurisdiction over employment discrimination claims by agreeing to arbitration, Plaintiff argues that "it is highly unlikely that an English court, would in this instance defer to the contracting parties" by interpreting the forum selection clause to require that his discrimination claims be brought in the England. (Pl.'s Opp'n Mem. 14). As a
Finally, Martinez contends that his discrimination claims do not "aris[e]" under the Agreement both because they are a creature of statute — namely, the Equality Act — rather than contract and because the Equality Act extends, in some instances, to non-employees, who may bring claims notwithstanding the lack of a contractual relationship. (Pl.'s Opp'n Mem. 12-13), The fact that a claim under the Equality Act is technically a statutory tort, however, does not answer the question of whether it arises under the contract. Cf., e.g., Cfirstclass Corp. v. Silverjet PLC, 560 F.Supp.2d 324, 329 (S.D.N.Y.2008) ("[C]ourts, including this one, have held that a contractually-based forum selection clause will also encompass tort claims if the tort claims ultimately depend on the existence of a contractual relationship between the parties....") (internal quotation marks omitted) (citing cases); Anselmo v. Univision Station Grp., Inc., No. 92 Civ. 1471(RLC), 1993 WL 17173, at *2 (S.D.N.Y. Jan. 15, 1993) ("A forum selection clause should not be defeated by artful pleading of claims not based on the contract containing the clause if those claims grow out of the contractual relationship...."). And whether or not a person could hypothetically bring a claim under the Equality Act that would not depend on the existence of a contract is irrelevant to the question of whether Martinez's claims in this case are within the scope of the forum selection clause. The undisputed fact is that, had Martinez brought his discrimination claims in England, he would have had to prove the existence of the Agreement to prevail. It follows that his claims arose from the Agreement and therefore fall within the scope of the forum selection clause. Cf. Phillips, 494 F.3d at 390-92 (holding, under federal law, that copyright claims did not fall within a forum selection clause applying to claims that "arise out of a contract because the plaintiff's claims could proceed on their own terms without reference to the contract, which was "only relevant as a defense" to the plaintiff's claims).
For the foregoing reasons, the forum selection clause in this case is presumptively enforceable and the burden is on Martinez to rebut that presumption. Unlike the third prong of the Phillips test, the question of whether a non-moving party can rebut the presumption of enforceability is governed by federal law even if the contract contains a choice of law provision. See Phillips, 494 F.3d at 384. Further, because of the Second Circuit's "strong public policy in favor of forum selection ... clauses," Roby, 996 F.2d at 1361, exceptions to the presumption of enforceability are narrowly construed, see, e.g., Tropp v. Corp. of Lloyd's, 385 Fed. Appx. 36, 37 (2d Cir.2010) (summary order), and a party seeking to rebut the presumption bears a "heavy burden." Bluefire Wireless, Inc. v. Cloud9 Mobile Commc'ns, Ltd., No. 09 Civ. 7268(HB), 2009 WL 4907060, at *2 (S.D.N.Y. Dec. 21, 2009). Specifically, as the Second Circuit
In the present case, Martinez ignores the fact that the Second Circuit has identified these as the only four ways to rebut the presumption of enforceability and therefore makes little or no effort to show how he satisfies one of them. Instead, he argues generically that enforcement of the forum selection clause in the particular facts and circumstances of this case would be "unreasonable or unjust." (Pl.'s Opp'n Mem. 10). More specifically, he contends that dismissal of his suit would be unreasonable or unjust because (1) the statute of limitations on his English discrimination claims has run (Pl.'s Opp'n Mem. 2, 17-18); (2) the remedies available under the ADA and English law are materially different, especially insofar as he could recover attorney's fees under the ADA but not under English law (Pl.'s Opp'n Mem. 18-19); and (3) he has been "required" to abandon the UK Proceedings "as a consequence of the prohibitive cost of the [UK Proceedings] and the unavailability of prevailing party attorneys fees...." (Pl.'s Opp'n Mem. 19). These arguments fall far short of carrying Martinez's burden.
First, it is well established that a forum selection clause "must be enforced" even if that results in "the forfeiture of some claims that could have been brought in a different forum." Roby, 996 F.2d at 1360-61. In Bremen, for example, the Supreme Court upheld the enforcement of a forum selection clause even though the contractual provisions purporting to exculpate the defendant from liability would be enforced in England. 407 U.S. at 15-16, 92 S.Ct. 1907. And applying that same principle, courts have consistently held that a forum selection clause is enforceable even if, as may be the case here, the applicable statute of limitations has run in the relevant forum. See, e.g., Brodsky v. Match.com LLC, No. 09 Civ. 5328(NRB), 2009 WL 3490277, at *3 (S.D.N.Y. Oct. 28, 2009); see also, e.g., Kelso Enters. Ltd. v. M/V Diadema, No. 08 Civ. 8226(SAS), 2009 WL 1788110, at *2 (S.D.N.Y. June 23, 2009) ("The Second Circuit has not directly ruled on whether the expiration of the statute of limitations in the forum selected by an enforceable forum selection clause would render enforcement of the clause unjust. However, courts in this district have overwhelmingly answered that question in the negative."). This is for good reason. After all, to hold that an expired statute of limitations would vitiate an otherwise enforceable forum selection clause would "create a large loophole for the party seeking to avoid enforcement of the forum selection clause [who could] simply postpone [his] cause of action until the statute of limitations has run in the chosen forum and then file [his] action in a more convenient forum." Brodsky, 2009 WL 3490277, at *3 (quoting New Moon Shipping Co. v. MAN B & W Diesel AG, 121 F.3d 24, 33 (2d Cir.1997)) (alterations in original).
Finally, the fact that the costs associated with litigating Martinez's claims in England (and the unavailability of attorney's fees under English law) led him to voluntarily discontinue his claims there makes no difference to the analysis. The mere fact that litigation in a foreign forum is "more costly or difficult" does not provide a "sufficiently strong showing" that enforcement of a forum selection clause would be unreasonable or unjust. Phillips, 494 F.3d at 384, 393. Nor do a plaintiff's personal financial difficulties. See, e.g., Exp.-Imp. Bank of U.S. v. Hi-Films S.A. de C.V., No. 09 Civ. 3573(PGG), 2010 WL 3743826, at *10 (S.D.N.Y. Sept. 24, 2010); see also, e.g., Mercury West A.G., Inc. v. R.J. Reynolds Tobacco Co., No. 03 Civ. 5262(JFK), 2004 WL 421793, at *4 (S.D.N.Y. Mar. 5, 2004) (enforcing a forum selection clause because "[s]imply claiming financial distress does not warrant setting aside a valid forum selection clause"); J.B. Harris, Inc. v. Razei Bar Indus., Ltd., 37 F.Supp.2d 186, 190 (E.D.N.Y.1998) ("Plaintiff has failed to demonstrate that [plaintiff corporation's] `financial [] devastation' or [corporation president's] fear of traveling to Israel ... warrant disregarding the parties' explicit agreement to resolve disputes in Israel.") (citation omitted). Once again, were the law otherwise, a party could easily evade enforcement of a forum selection clause, simply by foregoing — or discontinuing — an action in the foreign forum.
In sum, the hardships cited by Martinez — most of which are a product of his voluntary decisions to litigate his claims simultaneously in both England and here and then to drop the English suit — are not enough to rebut the presumption of enforceability and relieve him from the consequences of his agreement to the forum selection clause. The clause therefore bars Martinez from litigating his claims against Bloomberg in the United States. It also bars him from litigating his claims against Lack and Henderson, even though they are not signatories to the Agreement, as they are "sufficiently close" to Bloomberg for enforcement of the forum selection clause to be "foreseeable." In re Optimal U.S. Litig., 813 F.Supp.2d 351, 369 (S.D.N.Y.2011); see also, e.g., Roby, 996 F.2d at 1360 ("[E]mployees or disclosed agents of an entity that is a party to an [] agreement [containing a forum selection clause] are protected by that agreement.... If it were otherwise, it would be too easy to circumvent [such clauses] by naming individuals as defendants instead of [entities].").
For the reasons set forth above, the motion of Defendants Bloomberg and Lack to dismiss for improper venue (Docket No. 7) is GRANTED and Plaintiff's complaint as to those Defendants is dismissed in its entirety. In light of that ruling, the Court need not, and does not, reach Defendants' alternative argument that Plaintiff's state law claims should be dismissed.
Plaintiff is hereby ORDERED to show cause in writing, no later than August 24, 2012, why the complaint should not also be dismissed against Henderson for the same reasons or, in the alternative, for failure to serve the complaint in a timely fashion. If the Court does not receive any such communication from the Plaintiff, the Court will dismiss the case altogether without further notice to either party.
SO ORDERED.