Case: Shell vs. R.W. Sturge, LTD
55 F.3d 1227, Court of Appeals, 6th Circuit (1995)
Facts: A diversity action was brought by the investors in the Lloyd’s Society, who wanted to rescind the invested money in Lloyd’s because the investors wanted the Ohio State Securities Law to shelter them, against R.W. Sturge, Ltd. The defendants filed a motion to dismiss it based on improper venue and the appeal was dismissed based on the forum selection that takes away their rights under the Ohio Securities laws and Ohio public policy outweighs the policies served by enforcing the forum selection clauses.
Procedure: Court of Appeals, 6th Circuit
Issue: Can the case be dismissed based on the forum selection that takes away their rights under the Ohio Securities laws and Ohio public policy outweighs the policies which are assisted by enforcing the forum selection clauses?
Holding: (Vote: 3 - 0) no, under the Federal Rules of Civil Procedures Section 12 (b) (3), dismissed the appeal based on the forum selection that deprives them of their rights under the Ohio Securities laws and Ohio public policy outweighs the policies which are assisted by enforcing the forum selection clauses.
Reasoning: (Kennedy and Suhrheinrich, Circuit Judges and Hillman, District Judge)
A. Rule: Under the Federal Rules of Civil Procedures Section 12 (b) (3), the defenders can file a case. The order granted the defendants’ motion for a dismissal since the action involved a security under Ohio Securities law.
B. Application: This case was an international agreement which can be enforce with the forum clause unless plaintiffs can show that by enforcing the agreement it would become unreasonable or that the clause was invalid. The District Court had to determine whether these contracts were void. Since the District Court found them to be void, the forum selection clauses would be void as