C.R. MCRAE, APPELLANT,
v.
J.D./M.D., INC., APPELLEE
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McRae, a Mississippi lawyer, appeals a denial of his motion to dismiss a breach of contract suit filed in Florida, arguing lack of personal jurisdiction. The Fourth District Court of Appeal affirmed, holding that the parties' contractual forum-selection clause choosing Florida law and venue in Palm Beach County validly conferred personal jurisdiction over the non-resident defendant.
The court held that a contractual forum-selection clause can validly confer in personam jurisdiction over a non-resident defendant, provided the clause was not the product of overreaching, does not contravene strong public policy, and was not designed to transfer a local dispute to a remote forum to inconvenience the parties.
[1] A contractual provision consenting to personal jurisdiction in a specific forum is enforceable if it was not the result of overreaching, does not contravene strong public…
[2] Parties to a contract may consent to personal jurisdiction in a forum even if the forum's long-arm statute would otherwise not apply.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Having agreed that Florida should have such jurisdiction in the event of a lawsuit, when McRae was served with process pursuant to 48.194, he was a party thereto and personally liable for any judgment ultimately entered against him.”
Establishes that contractual consent is sufficient basis for jurisdiction independent of the Long Arm Statute
Previewing 1 of 2 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceJ.D./M.D., Inc., a Delaware corporation, contracted with McRae (a Mississippi lawyer) and his client Sheperd (also from Mississippi) to procure an exp…
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DOWNEY, Judge.
Appellant, C.R. McRae (McRae) appeals from a non-final order denying his motion to dismiss a complaint against him because of lack of personal jurisdiction.
Appellee, J.D./M.D., Inc. (J.D.), a Delaware corporation with offices in several states including Florida, is a company that specializes in procuring expert witnesses to assist parties in litigation. J.D. entered into a contract with McRae, a lawyer, and his client, Sheperd, both residents of Mississippi, to find an expert witness in a medical malpractice suit Sheperd was maintaining in Mississippi. The contract provided that, if such a witness was found and used, J.D. was to be paid a percentage of the recovery. It also provided: It is agreed that this Agreement, wherever executed, shall be construed in accordance with the laws of the state of Florida and venue shall be in Palm Beach County, Florida.
J.D. filed a complaint in the circuit court of Palm Beach County against Sheperd and McRae for breach of said contract and obtained service of process under section 48.-194 on said defendants in Mississippi. McRae moved to quash service on the grounds that he is not subject to the jurisdiction of the Florida court under section 48.193, Florida Statutes (1983); that he is a nonresident of Florida; he is not doing business or carrying on a business venture in Florida; that payments under the contract in question were to be made in New Jersey; and that there simply were no contacts with Florida. Therefore, McRae argued the case should be dismissed because the court had no personal jurisdiction over him.
The trial court rejected these arguments and denied the motion and we think rightly so.
The basis for obtaining personal jurisdiction over McRae, a non-resident, is not the Florida Long Arm Statute and one or more of the statutory conditions for obtaining such jurisdiction. Rather, the contract entered into between the parties provided the basis for Florida obtaining such jurisdiction. Having agreed that Florida should have such jurisdiction in the event of a lawsuit, when McRae was served with process pursuant to 48.194, he was a party thereto and personally liable for any judgment ultimately entered against him.
McRae contends also that such contractual provisions are invalid, relying upon Sausman Diversified Investments, Inc. v. Cobbs Co., 208 So. 2d 873 (Fla. 3d DCA 1968). However, in Maritime Limited Partnership v. Greenman Advertising Associates, Inc., 455 So. 2d 1121 (Fla. 4th DCA 1984), this court held such contracts were valid and adopted the reasoning of the Supreme Court of the United States in M/S Bremen v. Zapata Off-Shore Co., 407 U.S. 1, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972). In that case we held that in personam jurisdiction can be conferred by consent, provided that:
1. The forum was not chosen because of overwhelming bargaining power on the part of one party which would constitute overreaching at the other’s expense.
2. Enforcement would not contravene a strong public policy enunciated by statute or judicial fiat, eithér in the forum where the suit would be brought or the forum from which the suit has been excluded.
3. The purpose was not to transfer an essentially local dispute to a remote and alien forum in order to seriously inconvenience one or both of the parties.
455 So. 2d at 1123.
Accordingly, the order appealed from is affirmed.
LETTS and WALDEN, JJ., concur.
ON MOTION FOR REHEARING
ORDERED that the Motion for Rehearing filed by Appellant on January 15, 1986 is denied. Further
ORDERED that the opinion of this court filed December 31, 1985 is amended to include the following certified question to the Supreme Court of Florida:
CAN PARTIES TO A CONTRACT AGREE THEREIN TO SUBMIT TO THE JURISDICTION OF A CHOSEN FORUM IN THE EVENT OF SUBSEQUENT LITIGATION ARISING OUT OF SAID CONTRACT?
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Citator
Cited By
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C.R. McRAE v. J.D./M.D., Inc., 511 So. 2d 540 (Fla. 1987)…EHRLICH, Justice. We have for our review McRae v. J.D./M.D., Inc., 481 So. 2d 945 (Fla. 4th DCA 1985), wherein the district court certified a question of great public importance. We have jurisdiction, article V, section 3(b)(4), Florida Constitution. The question certified by the district court1 is overly broad. Therefore, we re…
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Datamatic Servs. Corp. v. Bescos, 484 So. 2d 1351 (Fla. 2d DCA 1986)…ct has disagreed with the Third District and has held that such clauses may be enforce [*1354] able. Maritime Limited Partnership v. Greenman Advertising Associates, Inc., 455 So. 2d 1121, 1123 (Fla. 4th DCA 1984). See also McRae v. J.D./M.D., Inc., 481 So. 2d 945 (Fla. 4th DCA 1985). Maritime, in light of its conflict with those Third District cases, certified to the Florida Supreme Court the question which the Fourth District perceived to arise from that conflict. 455 So. 2d at 1124. But we have been inform…
Authorities Cited
- THE Bremen v. Zapata Off-Shore Co., 407 U.S. 1 (U.S. 1972)
- Mar. Ltd. P'ship v. Greenman Advertising Assocs., Inc., 455 So. 2d 1121 (Fla. 4th DCA 1984)
- Sausman Diversified Invs., Inc. v. The Cobbs Co., Inc., 208 So. 2d 873 (Fla. 3d DCA 1968)