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The Bremen v. Zapata Off-Shore Co. | 407 U.S. 1 (1972)
A forum-selection clause is a clause in a contract that binds the parties to submit any disputes to a specific court. In The Bremen versus Zapata Offshore Company, the United States Supreme Court considered whether forum-selection clauses should be valid in international transactions.
Zapata, a Houston-based American oil-drilling corporation, entered into a contract to drill wells in the Adriatic Sea near Ravenna, Italy. Zapata solicited bids for the job of towing its oil-drilling rig, the Chaparral, from Louisiana to Italy. Unterweser, a German corporation, presented the lowest bid. The contract that Unterweser presented Zapata contained a provision requiring that any disputes be handled by the London Court of Justice. Zapata executed the contract without making any changes in this provision.
Unterweser’s deep-sea tug Bremen left Louisiana with the Chaparral in tow. Four days after its departure, a storm in the Gulf of Mexico severely damaged the rig. Zapata instructed the Bremen to tow the Chaparral to Tampa, Florida.
Zapata then sued Unterweser in admiralty in United States federal district court. Unterweser invoked its forum-selection clause and asked the court to dismiss the case. The court denied this motion, holding that the forum-selection clause was unenforceable. The Court of Appeals affirmed. It held that remanding Zapata to a foreign forum that had no contact with the controversy other than the forum-selection clause could impede a U.S. citizen’s chances of recovery in a way that U.S. courts wouldn’t allow. The United States Supreme Court granted cert.
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