Forum Selection Clauses For Airline Tickets Are Still Enforceable
(August 2011) By Kevin M. Cox, Associate
For more information, contact Paul
Farquharson.
Fusha v. Delta Airlines, Inc.,
(D. Md. Aug. 30, 2011)
Plaintiff, Liri Fusha (“Plaintiff”), sued Delta Airlines,
Inc. (“Delta”), Air Trade International, Inc. (“Air Trade”), and Alitalia-Linee
Aeree Italiane S.P.A. (“Alitalia”) (collectively “the Defendants”), alleging
various injuries. She contended that she missed a connecting flight from Rome to
Albania, had to haul her luggage between the customer service counters for Delta
and Alitalia, was told to sleep on the floor at the airport in Rome, Italy, and
was forced to lock herself in an airport restroom to escape a confrontational
floor-cleaning janitor. She sought over $2 million dollars as a result of the
Defendants’ actions.
Air Trade filed a motion to dismiss for improper venue. Air
Trade is an on-line travel booking company, and argued that its website’s terms
and conditions included a forum selection clause that mandated that Plaintiff
bring any action against it in California. According to Air Trade, prior to
purchasing her tickets, Plaintiff agreed to Air Trade’s terms and conditions by
checking (or clicking) a box on the website acknowledging that she read the
terms and conditions imposed by Air Trade. Because Plaintiff did indeed purchase
tickets through Air Trade’s website, Air Trade argued that she must have agreed
to the terms and conditions containing the forum selection clause.
Plaintiff did not dispute Air Trade’s assertion that
she agreed to its terms and conditions, but instead argued that she had no
recollection of ever reading, much less agreeing to, a forum selection
clause. Moreover, she argued that if she had agreed to the forum selection
clause by clicking the “I agree” box on the website, the forum selection
clause was nevertheless unreasonable and unenforceable on the ground that
litigating in California would be difficult and inconvenient to her.
The Court began its analysis by noting that two recent
opinions (also involving Plaintiff) have carefully examined the validity of
forum selection clauses in the on-line context—specifically where a party
agrees to certain terms and conditions as a consequence of using the
opposing party’s website. Notably, the United States District Court for the
District of Maryland has previously held that “clickwrap agreements,
agreements that require a customer to affirmatively click a box on the
website acknowledging receipt of an assent to the contract terms before he
or she is allowed to proceed using the website. . . have been routinely
upheld by circuit and district courts.” It has also been held recently in
this District that otherwise valid forum selection clauses may not be
binding if the challenging party meets the “heavy burden of showing that
enforcement would be unreasonable, unfair, or unjust.”
Put simply, the court held that Plaintiff had not met
the “heavy burden” necessary to invalidate Air Trades forum selection
clause. First, the court recognized that “failure to read an enforceable
on-line agreement, as with any binding contract will not excuse compliance
with its terms.” Second, Plaintiff’s conclusory statements that it would be
inconvenient for her to litigate in California, rather than Maryland, were
insufficient to show that enforcement of the forum selection clause would be
unduly burdensome. Specifically, the United States District Court for the
District of Maryland has held that “increased expenses do not affect the
validity of the forum/selection clause. The mere assertion that litigation
will be more expensive for one party than another is not a reason for
declaring the clause invalid.” Plaintiff had simply not met her substantial
burden. Finally, Plaintiff argued that because Air Trade is a corporation,
it necessarily has greater bargaining power and its forum selection clause
should be disregarded. Other courts have disregarded such argument, and the
District Court agreed.
In sum, Plaintiff was not forced to book her travel
arrangements through Air Trade’s website, and could not show litigating in
California would deprive her of her day in court. When Plaintiff booked her
flights through the website, she agreed to the terms and conditions, and
could not later escape the contract to which she was obliged. For such
reasons, Air Trade’s motion to dismiss was granted.