Zapata, a Texas corporation, hired Unterweser, a German corporation, to provide a tugboat for pulling Zapatas oil

Question:

Zapata, a Texas corporation, hired Unterweser, a German corporation, to provide a tugboat for pulling Zapata’s oil rig. Unterweser prepared a contract, and Zapata signed the contract after making several changes. The contract contained a forum selection clause requiring that any disputes be litigated in an International Commercial Court in London. Zapata had not altered that part of the contract.

Unterweser’s tugboat departed from Louisiana pulling Zapata’s oil rig, but while in international waters off the Gulf of Mexico, a storm arose that resulted in severe damage to the oil rig. Zapata instructed Unterweser to tow the rig to the nearest port in Tampa, Florida. Zapata then filed a lawsuit in the federal district court in Tampa for $3.5 million against Unterweser.

CASE QUESTIONS

1. Does the court in Tampa have jurisdiction? Why or why not?

2. Will the forum selection clause be enforced? Why or why not?

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Related Book For  book-img-for-question

Business Law And Strategy

ISBN: 9780077614683

1st Edition

Authors: Sean Melvin, David Orozco, F E Guerra Pujol

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