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Dispute Resolution Keyed to Carbonneau, 8th Ed.
The Bremen v. Zapata Off-Shore Co.
Citation:
407 U.S. 1, 92 S.Ct. 1907, 32 L.Ed.2d 513 (1972)Facts
In November 1967, Zapata Off-Shore Company, a Houston-based American corporation, contracted with Unterweser, a German corporation, to tow Zapata’s drilling rig Chaparral from Louisiana to Italy. After soliciting bids, Zapata selected Unterweser as the lowest bidder. The contract included a forum-selection clause stating “Any dispute arising must be treated before the London Court of Justice” and contained exculpatory provisions limiting Unterweser’s liability. On January 9, 1968, while in international waters in the Gulf of Mexico, a severe storm damaged the Chaparral. Zapata directed the Bremen to tow the damaged rig to Tampa, Florida. Ignoring the forum clause, Zapata filed suit in U.S. District Court in Tampa. Unterweser moved to dismiss based on the forum clause and later initiated its own action in the London court as specified in the contract. When the District Court failed to rule on its motion promptly, Unterweser filed a limitation of liability action in the same court to protect its interests.
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