Polk County Recreational Ass'n v. Susquehanna Patriot Commercial Leasing Co.

Summary

The Supreme Court of Nebraska affirmed dismissal of a Nebraska declaratory judgment action brought by golf courses against a leasing company and an equipment marketer. It held that the forum-selection clause in one lease was mandatory and enforceable under Nebraska law, while clauses in the other seven leases were permissive. The court also affirmed dismissal as to the remaining leases because related enforcement litigation was already pending in Pennsylvania.

Holdings

1. In Nebraska, a party seeking to enforce a written forum-selection clause requiring litigation in another state should proceed by motion to dismiss under Neb. Rev. Stat. § 25-415. A motion for summary judgment raising that issue may be treated as such a motion, and the resulting order may be treated as an order granting dismissal under § 25-415.
2. A ruling on a motion to dismiss under § 25-415 is reviewed de novo apart from factual findings; factual findings are reviewed for clear error.
3. The Thornridge lease's provision that any legal action concerning the lease shall be brought in federal or state court in Montgomery County, Pennsylvania, was mandatory and required dismissal of the Nebraska action concerning that lease unless a statutory exception applied.
4. The mandatory forum-selection clause in the Thornridge lease was enforceable under both Nebraska and Pennsylvania law because the golf courses failed to establish any statutory or recognized exception.
5. A Nebraska court may dismiss a declaratory judgment action when, at its commencement, another action involving the same parties and the same issues is pending in another forum and can adjudicate the controversy. The district court therefore did not abuse its discretion by dismissing the claims concerning the seven leases with permissive forum-selection clauses.

Questions Presented

1. Whether Patriot's motion styled as a motion for summary judgment should be treated as a motion to dismiss under Neb. Rev. Stat. § 25-415 to enforce forum-selection clauses designating another state.
2. Whether the forum-selection clause in the Thornridge lease was mandatory and enforceable under § 25-415.
3. Whether the forum-selection clauses in the other seven leases were mandatory or merely permissive.
4. Whether the Nebraska declaratory judgment action concerning the seven leases with permissive clauses should be dismissed because a Pennsylvania action involving the same parties and issues was pending when the Nebraska action commenced.

Disposition

affirmed