| Bentley v Unicomer USA Holding |
| 2012 NY Slip Op 51861(U) [37 Misc 3d 1202(A)] |
| Decided on September 26, 2012 |
| Supreme Court, Kings County |
| Lewis, J. |
| Published by New York State Law Reporting Bureau pursuant to Judiciary Law § 431. |
| This opinion is uncorrected and will not be published in the printed Official Reports. |
Patricia Bentley,
Plaintiff,
against Unicomer USA Holding, Regal Forest Holding Co. Ltd. and Courts Caribbean, Defendants. |
Third-Party Plaintiff, Courts Caribbean commenced an action in this Court
against Third-Party Defendant, Somerton Home Furnishings, Inc. ("Somerton"), to recover
damages for personal injuries, providing two causes of action: (1) common law indemnification
based upon theories of product liability and (2) contractual indemnification. Somerton moves to
dismiss the Third-Party Complaint in its entirety.
Facts
Regal Forest Holding Co. Ltd. is a foreign corporation and conducts business in the
United States under the name Unicomer USA Holding. Unicomer USA Holding does business in
New York under the name Courts Caribbean. Courts Caribbean is a domestic corporation.
Somerton is a California corporation and a wholesale seller of home furnishings. Somerton has
done extensive business with Courts Caribbean since 2006. In each business transaction, [*2]Somerton has provided Courts Caribbean with an invoice that
included the Standard Terms and Conditions. Courts Caribbean has never objected to this
procedure. The Standard Terms and Conditions contain a forum selection clause that states:
"7(d). Any action or proceeding brought to enforce, or which otherwise arises out of or relates to,
the Agreement container herein, shall be brought and maintained only in a court of competent
jurisdiction in Orange County, California. Buyer consents to jurisdiction and venue in the state
and federal courts located in Orange Country, California."
On or around October 13, 2008, Courts Caribbean ordered about 200 pieces of
furniture to be delivered to their New Jersey facility. Included in this order was a product called
the "Rhythm Queen Bed" (Rhythm bed). Plaintiff, Patricia Bentley, commenced an action in this
Court against Courts Caribbean for negligence. Ms. Bentley alleges that while sitting on the
Rhythm bed on or about November 9, 2008, the bed broke and/or collapsed, resulting in her
subsequent injuries. The bed involved was designed, manufactured, tested, inspected, labeled,
marketed and/or distributed by Somerton. Somerton represented that the bed was safe, of
marketable quality, and fit for the ordinary purpose for which the product was intended to be
used.
If Ms. Bentley is able to prove that she sustained injuries as a result of negligence
other than her own, Courts Caribbean argues that such negligence would be solely that of
Somerton. Courts Caribbean further alleges that Somerton was negligent in the design,
manufacturing, testing, inspection, maintenance, labeling, marketing, distribution, and/or sale of
the bed. Courts Caribbean asserts that Somerton was in breach of express and implied warranties
regarding the Rhythm bed. Courts Caribbean further alleges that, pursuant to the contract,
Somerton agreed to "indemnify, defend, and save harmless" Courts Caribbean from "all loss,
damage, injury or death, or claims, including attorney's fees and court costs".
In its response to dismiss the Third Party Complaint in its entirety, Somerton argues
that New York courts have enforced forum selection clauses where they are contained in invoices
exchanged between parties in sale-of-goods transactions. See F.W. Myers & Co. Inc. v.
Gerald Indus., 178 AD2d 890, 891 (3d Dep't 1991). Somerton argues that a forum selection
clause should not be set aside unless there is proof that enforcement would be unreasonable,
unjust or the clause is invalid due to fraud or overreaching. See e.g., Horton v. Concerns of Police
Survivors, 62 AD3d 836, 836-37 (2d Dep't 2009) With regard to Courts Caribbean's
second cause of action, Somerton argues that Courts Caribbean fails to state a claim upon which
relief can be granted because there was no agreement between Somerton and Courts Caribbean
providing indemnification from any loss. Somerton argues that a party to a claim cannot state a
claim for contractual indemnity absent an indemnity clause within the contract, and Courts
Caribbean's cause of action must fail as a matter of law. See Gutierrez v. Broad Fin.Ctr.,
LLC, 2009 Slip Op 52805U, 5-6 (NY Sup. Ct. Bronx County 2009).
Discussion
The issue is whether the forum selection clause in the Agreement applies to a
third-party. In the present case, Courts Caribbean admits the existence of a valid agreement, but
filed suit in New York, without regard to the forum selection clause. Courts Caribbean never
objected to the Standard Terms and Conditions, which included the clause selecting Orange
County as the forum for any action or proceeding arising out of or relating to the Agreement.
Courts Caribbean has not alleged any unreasonability regarding the Agreement's forum selection
clause. It is well-settled that a contractual forum selection clause is prima facie valid and
enforceable unless it is shown to be unreasonable, unjust, against public policy, invalid due to
fraud or overreaching, or if the challenging party will be deprived of its day in court. See Stravalle v. Land Cargo, 39 AD3d
735, 835 N.Y.S.2d 606 (2nd Dep't 2007) (citing LSPA Enter., Inc. v. Jani-King of NY,
Inc., 31 AD3d, 394, 395, 817 N.Y.S.2d 657).
Section 7(d) of the Standard Terms and Conditions requires that "any action or
proceeding ... to enforce ... the Agreement" be brought in Orange County, California. The forum
[*3]selection clause is broad enough to encompass Court
Caribbean's claim and their assertion that the forum selection clause was not intended to apply to
third party claims is without merit. Courts Caribbean did not allege that the contract was
unreasonable, unjust, against public policy, invalid due to fraud or overreaching, or that they
would be deprived of their day in court. Courts Caribbean asserts that the absence of an
indemnification clause in the Agreement invalidates the forum selection clause for third party
claims; however, Section 6(h) provides that "[Somerton] is not liable for any consequential
damages to buyer no matter how arising, except as herein specifically provided, company makes
no warranties, express or implied, of merchantability, fitness for purpose or otherwise,
[Somerton's] liability for breach of any warranty or contract, with respect to such company
products or their replacement, at company's option. In no event shall company have any
responsibility or liability for any direct, indirect, incidental or consequential damages incurred by
buyer." While there is no indemnification clause in the Agreement, this clause is broad enough to
encompass third party claims. As a result, Courts Caribbean's second cause of action for
contractual indemnification is without merit.
The possibility that Courts Caribbean could be sued by a customer in relation to a product manufactured by Somerton was entirely foreseeable. The forum selection clause is valid and enforceable, and the third party complaint will be dismissed for lack of jurisdiction. If it so chooses, Courts Caribbean may file suit in the appropriate forum.
This constitutes the decision and order of the court.
E N T E R__________________________________
yvonne lewis, J.S.C.