Summary
This Fifth Circuit opinion addresses whether a contractual forum selection and consent-to-jurisdiction clause constitutes a clear and unequivocal waiver of a defendant's statutory right to remove a case to federal court. Reversing the district court's remand order, the appellate court held that the provision merely consented to venue and personal jurisdiction in Harrison County, Mississippi, without explicitly waiving removal rights. Applying Mississippi contract law and controlling circuit precedent, the court concluded that ambiguous language cannot strip parties of their removal privileges.
Topics
Practice areas
Questions Presented
- Whether the contractual forum selection clause constitutes a clear and unequivocal waiver of the defendants' right to remove the case to federal court.
Holdings
- The contract provisions do not constitute a clear and unequivocal waiver of the defendants' removal rights; therefore the district court erred in remanding the case.
Key quotations
“For a contractual clause to prevent a party from exercising its right to removal, the clause must give a ‘clear and unequivocal’ waiver of that right.” (at 504)
“A remand based on waiver is not jurisdictional.” (at 258)
Factual background
Plaintiffs sued eleven defendants alleging breach of employment agreements, misappropriation, embezzlement, and fraud. The parties' contracts contained a forum selection clause stating that the agreement is governed by Mississippi law and venue is limited to Harrison County, Mississippi, with consent to personal jurisdiction and venue in those forums.
Procedural history
Plaintiffs filed suit in Mississippi state court. Defendants removed to federal court. District court held that contractual forum selection clause waived removal and remanded to state court. The Fifth Circuit reviewed the waiver de novo and reversed.
Remand instructions
Remand the case to the United States District Court for the Southern District of Mississippi.