In Wello & Mom, LLC v. Clear Spring Prop. & Cas. Co., 2023 WL 8609239, 2023 Fla. App. LEXIS 8438 (Fla. 3d DCA Dec. 13, 2023, Florida’s Third District Court of Appeals, which encompasses Miami-Dade County has held that a policy's forum selection clause, which required that suits arising under the policy be subject to the exclusive jurisdiction of the federal courts, is enforceable.
On appeal, the insured contended the policy's forum selection clause should be deemed unenforceable as it was not negotiated and deprived it of the right to a jury trial, given the insurer had already filed a separate declaratory judgment action in federal court.
The court surprisingly found that there is a well-entrenched rule of federal admiralty law favoring the enforcement of forum selection clauses in maritime contracts, citing several well-known cases including M/S Bremen v. Zapata Off-Shore Co., Carnival Cruise Lines, Inc. v. Shute and Turner v. Costa Crociere S.p.A.. However none of the cases cited in the decision involved forum selection clauses in marine insurance policies, as claimed in the decision, and none of the cases squarely address Wilburn Boat Co. v. Fireman's Fund Ins. Co., 348 U.S. 310 (1955), which held that “the whole judicial and legislative history of insurance regulation in the United States warns us against the judicial creation of admiralty rules to govern marine policy terms…” Wilburn Boat also noted that the “control of all types of insurance companies and contracts has been primarily a state function since the States came into being.”
This latest ruling adds to the anticipation of SCOTUS’ ruling in Great Lakes Insurance SE v. Raiders Retreat Realty Co, LLC, No. 22-500, where the insurer is employing the same M/S Bremen argument requesting SCOTUS to uphold applying a choice of law clause calling for all cases against the insurer to be brought in New York State.
If you are interested in obtaining of copy of this decision or wish to discuss any matter involving marine insurance, please feel free to reach out to me at blog@miamimaritimelaw.co or 305.377.3700.