Declan Flight, Inc., et al v. Textron eAviation, Inc., et al
Split Score
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Case Summary
Disposition
Reversed
The Eleventh Circuit held that although federal common law governs the enforceability of forum-selection clauses, issues of interpretation—such as whether a non-signatory may invoke the clause—are substantive questions governed by the law chosen in the contract. Because Slovenian law does not permit the Textron defendants (non-signatories) to rely on the contracts’ Slovenian forum-selection clauses, the district court erred in dismissing Counts I and II on forum-non-conveniens grounds and in finding personal jurisdiction for Count III; the panel reversed those rulings and remanded for further proceedings.
Circuit Split Identified
Legal Issue
Whether interpretation/applicability of a forum-selection clause (e.g., which parties and claims the clause covers) is governed by federal common law or by the substantive state/foreign law that governs the contract, while enforceability remains governed by federal law.
Circuit Positions
Federal common law governs both interpretation/applicability and enforceability of forum-selection clauses.
Interpretation/applicability of a forum-selection clause is governed by the substantive law chosen in the contract (state or foreign), while federal common law governs enforceability.
Conflict Summary
The Fourth and Ninth Circuits treat both enforceability and interpretation of forum-selection clauses as matters of federal common law. In contrast, the Second, Third, Fifth, Sixth, Tenth, and now Eleventh Circuits apply a two-step approach: state or chosen foreign law governs interpretation/scope, while federal common law governs enforceability under The Bremen/Atlantic Marine.