Forum Selection Clause “Sinks” Cruise Ship Claim

One of the problems with claims against cruise ships is that they are governed by forum selection clauses that identify the court in which claim must be filed in and the time period within which a claim must be made. As a general rule, these contracts tend to require a claim for negligence to be filed within one year of the incident. In years past, cruise ships would identify a court that was out of state, typically Florida, as the forum in which a claim must be filed. Now that Seattlehas more cruise ship business, some cruise lines will designate a Washington court as the forum to address these claims.

Jack Oltman, Bernice Oltman and Susan Oltman filed a lawsuit in the King County Superior Court (the state court) for damages associated with a gastrointestinal illness that Jack and Bernice contracted while on a Holland America cruise. Susan was not on the cruise, but filed a claim alleging loss of consortium which is a loss of the husband and wife relationship.

The cruise ticket, that was given to Jack and Bernice, provided that any suit had to be filed within one year of the time the claim arose and in the United States District Court for Western Washington (the federal court). The only exception to this filing requirement was that, if the federal court did not have authority to hear the matter, then, and only then, could it be heard in a state court.

Unfortunately, the Oltmans waited until the last minute to file their lawsuit. As a result, when they learned that Holland America was going to raise the contractual defense that they filed in the wrong court, it was too late to remedy the problem by filing a claim in the federal court. As a result, the trial judge dismissed all their claims. The Court of Appeals agreed with the trial judge. After losing in the Court of Appeals, the Oltmans asked the Washington Supreme Court to review their case. The Supreme Court agreed that the claims of Jack Oltman and Bernice Oltman should have been filed within one year in the federal court because they were contractually bound to do so. The court, however, did not believe this to be the case as to Jack’s wife, Susan. The court held that since she was not on the cruise and she was not a party to this contract, Mrs. Oltman had the right to independently assert her claim for loss of consortium in the state court, thus reinstating her claim.

Lessons learned.

First, cruise ship cases are a unique breed of animal. Since claims against cruise ships usually require a party to sue in a particular court and within an abbreviated time, care should always be taken when examining a claim of this nature.

Second, if you suspect you have a claim, get in to see a lawyer early in the game. This assures that mistakes like the Oltmans’ are less likely to happen. It also assures that attorneys are able to conduct an investigation while witness memories are fresh and to advise you of steps that you may have to take to preserve your claim.

Nothing in this Blog should be considered legal advice or to form an attorney client relationship. The information provided is general in nature. Nothing can substitute for a consultation with a legal professional who can address your particular legal problem.