SGIC STRATEGIC GLOBAL INVESTMENT CAPITAL, INC., ET AL.,
v.
BURGER KING WORLDWIDE, INC., ET AL.,
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The appellate court affirmed the dismissal of a lawsuit based on the doctrine of forum non conveniens and a mandatory forum selection clause. The court found no abuse of discretion in the lower court's decision to dismiss the case in favor of litigation in Germany.
No, the appellate court held that the lower court did not abuse its discretion in dismissing the complaint. The forum selection clause was found to be mandatory and enforceable, and the factors weighed in favor of dismissal in favor of a German forum.
[1] A trial court's decision to dismiss a case based on the doctrine of forum non conveniens is reviewed for an abuse of discretion.
[2] A forum selection clause is prima facie valid and enforceable.
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Join FLexlaw to unlock all legal intelligence“Because we find no abuse of discretion, we affirm.”
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Join FLexlaw to unlock all legal intelligenceAppellants filed a complaint concerning disputes over German Burger King franchises. The lower court dismissed the complaint, citing a mandatory forum…
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LINDSEY, J.
SGIC Strategic Global Investment Capital, Inc. (“SGIC”), GRIL German Restaurant Investment and Lending, Inc. (“GRIL”), and Christian Groenke (“Groenke”) (collectively, “Appellants”) appeal an order dismissing their complaint based on the doctrine of forum non conveniens, a mandatory forum selection clause requiring the action to be litigated in Germany, and decisions from another case involving these same Appellants that was similarly dismissed by federal courts in Texas. Because we find no abuse of discretion, we affirm. I. BACKGROUND This case arises from a series of disputes concerning interests in Burger King restaurants in Germany. Beginning in 1997, Groenke, a resident of Texas, became involved in owning and operating Burger King franchises in Germany through HEGO SystemGastronomie GmbH & Co. KG (“HEGO”).1 HEGO is a party to franchise agreements with Burger King Europe GmbH (“BK Europe”), a Swiss entity and the franchisor of Burger King restaurants in Europe. The relevant portions of these franchise agreements provide as follows: 2 15. Transfer of assets and rights; [BK Europe’s] option to purchase
(1) Without the consent of [BK Europe], Franchisee is not permitted to dispose of rights and entitlements to the Franchise Restaurant under this Agreement or to dispose of the items required for restaurant operations, in particular to sell, transfer, lease, mortgage, license or sublicense these.
. . . .
17. Miscellaneous: General Provisions
. . . .
(2) Jurisdiction/Applicable Law The exclusive venue for any disputes arising out of this Agreement, its application or its termination shall be Munich. This Agreement shall become effective upon acceptance and signature by [BK Europe]. This Agreement and its interpretation are governed by the laws of the Federal Republic of Germany.
18. Other Obligations (1) Subject to the following paragraph 2, all obligations and assurances of Franchisee in the above Franchise Agreement, in particular those in Nos. 4(2), 11, 12, and 15(7), apply to HEGO System-Gastronomie Beteiligungs GmbH and Mr. Christian Groenke and Mr. Thomas Wolff, respectively.
In October 2013, Groenke decided to exit the German Burger King market. BK Europe opposed the transaction, which resulted in a 2014 lawsuit between Appellants and BK Europe in the U.S. District Court for the Northern District of Texas. The Texas District Court dismissed the lawsuit based on the forum selection clause in the franchise agreements mandating that any such litigation be conducted in Munich, Germany. SGIC Strategic Glob. Inv. Capital, Inc. v. Burger King Europe
GmBH, No. 3:14-CV-3300-B, 2015 WL 12731761 (N.D. Tex. Aug. 26, 2015) (the “Texas Case”). The U.S. Court of Appeals for the Fifth Circuit affirmed the dismissal in a written opinion. SGIC Strategic Inv., Inc. v. Burger King Europe GmBH, 839 F. 3d 422 (5th Cir. 2016). In April 2018, Appellants filed the instant complaint against Miami-based Burger King Corporation (“BK Corp.”); Burger King Worldwide, Inc. (“BK Worldwide”); and Jose Cil, the former president of BK Europe.3 Many of the allegations in the complaint are virtually identical to the allegations in the Texas Case. However, in the complaint filed below, Appellants did not identify BK Europe by name but instead as “an entity affiliated with” BK Corp. and BK Worldwide. Appellees moved to dismiss the complaint on the ground that Appellants failed to join an indispensable party, BK Europe, the franchisor, who held the right to approve any sale. Appellees also argued that the federal courts in the Texas Case already had determined the forum selection clause mandated the dispute be resolved in Munich, Germany and that Appellants attempt to re-litigate the issue in Miami was barred by collateral estoppel. Appellees further asserted that dismissal was warranted based on the doctrine of forum non conveniens, given that the dispute
clause through the doctrine of forum non conveniens. GDG Acquisitions, LLC v. Gov’t of Belize, 749 F. 3d 1024, 1028 (11th Cir. 2014).
IV. ANALYSIS
Florida’s four-step forum non conveniens test is set forth in Florida Rule of Civil Procedure 1.061: (a) Grounds for Dismissal. An action may be dismissed on the ground that a satisfactory remedy may be more conveniently sought in a jurisdiction other than Florida when:
(1) the trial court finds that an adequate alternate forum exists which possesses jurisdiction over the whole case, including all of the parties;
(2) the trial court finds that all relevant factors of private interest favor the alternate forum, weighing in the balance a strong presumption against disturbing plaintiffs’ initial forum choice;
(3) if the balance of private interests is at or near equipoise, the court further finds that factors of public interest tip the balance in favor of trial in the alternate forum; and (4) the trial judge ensures that plaintiffs can reinstate their suit in the alternate forum without undue inconvenience or prejudice.
The decision to grant or deny the motion for dismissal rests in the sound discretion of the trial court, subject to review for abuse of discretion.
See also Kinney Sys., Inc. v. Cont’l Ins. Co., 674 So. 2d 86, 90 (Fla. 1996) (adopting the federal forum non conveniens doctrine), holding modified by Cortez v. Palace Resorts, Inc., 123 So. 3d 1085 (Fla. 2013).
In a detailed, twelve-page order, the trial court considered each of the four factors and concluded that “[a]n analysis of all of the relevant factors militate in favor of granting the Defendants’ Motion to Dismiss.” With respect to the first factor, adequacy of the alternative forum, the trial court found that “it is undisputed that Plaintiffs have an available and adequate forum for their claims in Germany. This is evidenced by the pending lawsuit in Germany that was initiated by the related franchisee entity, HEGO, against the real party of interest, [BK Europe].” See Kinney 674 So. 2d at 93 n.7 (“[T]here will be instances where a forum non conveniens dismissal would be appropriate notwithstanding one of the parties’ Florida residency. For example, the trial court may have discretion to dismiss under the doctrine where a plaintiff has named a ‘straw man’ Florida defendant who is merely the employee of the actual target of the dispute, an out-of-state corporation. In that situation, residency is that of the real party in interest, not the straw man.”).
As to the second factor, the trial court considered the fact that none of the Plaintiffs are residents of Florida. See Rolls-Royce, Inc. v. Garcia, 77 So. 3d 855, 860 (Fla. 3d DCA 2012) (“[T]he presumption normally accorded a plaintiff’s choice of forum is given less deference when, as here, the plaintiff is an out-of-state resident
with very little, if any, contact with Florida.” (citations and internal quotation marks omitted)). Moreover, the trial court found that “The transactions allegedly giving rise to Plaintiffs’ claims occurred in Germany and Europe; the majority of the witnesses are in Europe; and the Restaurants and documents are in Germany -- many of which are in German and require translation to English.”
In considering the public interest factor, the trial court considered the judicial resources required to litigate a case arising out of a dispute in Germany. The court also considered the public interest in enforcing the mandatory forum selection clause in the franchise agreements. See Royal Caribbean Cruises, Ltd. v. Clarke, 148 So. 3d 155, 157 (Fla. 3d DCA 2014) (“[F]orum selection clauses are ‘prima facie valid’ and enforceable.” (citing Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585, 589 (1991)). Finally, as to the fourth factor, the trial court concluded that it was “undisputed that there is no danger to Plaintiffs’ ability to reinstate this suit in Germany without undue inconvenience or prejudice.”
Based on the record before us, and the trial court’s detailed order of dismissal, we are unable to conclude that the trial court abused its discretion in dismissing for forum non conveniens. We therefore affirm the dismissal below.
Affirmed.
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- Kinney Sys., Inc. v. The Cont'l Ins. Co., 674 So. 2d 86 (Fla. 1996)
- Carnival Cruise Lines, Inc. v. Shute et vir, 499 U.S. 585 (U.S. 1991)
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