Lloyd's Maritime and Commercial Law Quarterly
BILL OF LADING CHOICE OF FORUM CLAUSES: COMPARISONS BETWEEN UNITED STATES AND ENGLISH LAW
By Michael F. Sturley*
Received wisdom holds that a United States court, in sharp contrast to an English court,1 generally will not give effect to a bill of lading clause granting exclusive jurisdiction to a foreign forum.2 There is ample judicial authority to support both halves of this generalization.3 When one looks beyond what the courts say, to examine what the courts actually do, however, the contrast between the two countries is not always so clear. Although U.S. courts declare that a carrier may not enforce a choice of forum clause when the bill of lading is subject by law to the U.S. Carriage of Goods by Sea Act 1936, carriers often achieve the same result by indirect means. English courts, on the other hand, appear to retain jurisdiction in bill of lading cases about as often as they give effect to the choice of forum clause by declining jurisdiction. Furthermore, not only do each country’s courts depart in practice from the received wisdom’s generalizations, but the criteria they use to make their decisions are remarkably similar. It may be appropriate, therefore, to re-examine some of the widely accepted conclusions about the law governing choice of forum clauses. United States and English law, as actually practised in this area, may turn out to be more similar than commentators have suggested.
A choice of forum clause, also known as a jurisdiction or forum selection clause, can take two forms. In its weaker form, it specifies where a dispute may be heard. Each party agrees to submit to the jurisdiction of the chosen court but does not waive the right to proceed in any other court where jurisdiction is also available. In its stronger form, a choice of forum clause specifies the only court in which a dispute may be heard, to the exclusion of any other court. For example, a carrier
* Professor of Law and Jay H. Brown Contennial Faculty Fellow in Law, University of Texas at Austin. Portions of this article were presented at a seminar in the London law offices of Richards Butler on 29 November 1990. when the author was the M.D. Anderson Foundation Visiting Professor in the Faculty of Laws at Queen Mary and Westfield College, University of London. Hans Baade. Michael Marks Cohen, Michele Deitch, Diana Faber. David Frederick. Allan Mendelsohn. John Moore, Francis Reynolds. David Robertson, Russell Weintraub and Jay Westbrook read earlier drafts of this article and offered valuable advice and criticism. Keith Rowley provided useful research assistance.
1. See, e.g., Lawrence Collins (Gen. Ed.), Dicey & Morris on the Conflict of Laws (11th edn., 1987), vol. 1, 412–414: P.M. North & J. J. Fawcett, Cheshire and North’s Private International Law (11th edn., 1987), 237–242; Raoul Colinvaux, Carver’s Carriage by Sea (13th edn., 1982), vol. 2. 734–740.
2. See, e.g., Grant Gilmore & Charles Black. The Law of Admiralty (2d edn., 1975), 145–146, fn. 23; Thomas Schoenbaum, Admiralty and Maritime Law (1987). 325 and fn. 8, 326–327; Andrew Waters, “The Enforceability of Forum Selection Clauses in Maritime Bills of Lading: An Update” (1990) 15 Tul. Mar. L.J. 29, 34–45.
3. See. e.g., The El Amria [1981] 2 Lloyd’s Rep. 119, 123 (C.A.) (an English court will enforce a choice of forum clause “unless strong cause for not doing so is shown”); Indussa Corp. v. S.S. Ranborg (1967) 377 F.2d 200. 1967 AMC 589 (2d Cir. en banc) (a choice of forum clause in a bill of lading governed by the U.S Carriage of Goods by Sea Act (COGSA) is void).
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