Florida Court Refuses to Enforce AOL Forum Selection Clause

A Florida District Court of Appeal has upheld the decision of a trial court in denying a motion by America Online, Inc (AOL) for dismissal of a class action for improper venue. In so doing, the Court refused to enforce the forum selection clause in the company's standard form subscriber agreement (Member Agreement). A number of Florida residents had banded together to commence an action against the Internet giant stemming from difficulties experienced in cancelling the service and the continued billing for service following cancellation. The proceedings were brought under Florida's Deceptive and Unfair Trade Practices Act. AOL moved to dismiss the action, relying on a clause in its Member Agreement which provided for exclusive jurisdiction in the courts of Virginia. The Court of Appeal did not rule out the enforcement of forum selection clauses in a standard form agreement as a matter of general principle. Rather, it relied on previous decisions to the effect that such enforcement should not be applied to class action litigation if a remedy under the Florida legislation is unavailable in the forum purported to be selected by the clause. Otherwise, said the Court, the very purpose and effectiveness of such consumer protection legislation would be undermined. To view the reasons for judgment, see: http://www.1dca.org/opinion/opinions2004/1-29-04/03-2290.pdf. Summary by: Colin Adams