Longhorn Public Adjusters LLC v. CardConnect, LLC

Summary

The United States District Court for the Northern District of Texas grants CardConnect, LLC’s request to transfer Longhorn Public Adjusters LLC’s class action to the Eastern District of New York based on a mandatory and enforceable forum-selection clause. The court concludes that the clause requires disputes to be litigated in Suffolk County, New York, and that the public-interest factors favor transfer under 28 U.S.C. § 1404(a). The court transfers the case without ruling on CardConnect’s Rule 12(b)(6) motion and declines to impose the 21-day transfer stay under Northern District of Texas Local Rule 62.2.

Holdings

1. The clause requiring that the exclusive venue for actions or claims arising under or related to the agreement be in Suffolk County, New York, was unambiguous and mandatory.
2. The mandatory forum-selection clause was enforceable because Longhorn failed to show fraud or overreaching, grave inconvenience or unfairness depriving it of its day in court, fundamental unfairness depriving it of a remedy, or contravention of a strong public policy.
3. The public-interest factors did not overcome the mandatory and enforceable forum-selection clause; transfer to the Eastern District of New York was appropriate.
4. The court directed the parties to proceed without the 21-day transfer stay because an additional stay was not necessary or just under Local Rule 83.1.

Questions Presented

1. Whether the agreement's forum-selection clause was mandatory rather than permissive.
2. Whether the forum-selection clause was enforceable.
3. Whether the public-interest factors under Atlantic Marine justified retaining the action in the Northern District of Texas despite the mandatory forum-selection clause.
4. Whether the court should stay transfer for 21 days under Northern District of Texas Local Rule 62.2.

Disposition

other