Digital Enterprises, Inc. v. Arch Telecom, Inc.
Docket: 95-CA-30
Court: Louisiana Court of Appeal; June 28, 1995; Louisiana; State Appellate Court
The Court of Appeal of Louisiana, Fifth Circuit, affirmed a trial court judgment that upheld a forum-selection clause mandating that disputes under a contract be litigated in Harris County, Texas. The case involved Digital Enterprises, Inc. (plaintiff-appellant) suing Arch Telecom, Inc. and Winkle Enterprises, Inc. (defendants-appellees) over alleged misrepresentations and breaches of contract. The defendants, based in Texas and Illinois, respectively, filed a declinatory exception of improper venue based on the contract's clause. Digital argued that relevant events occurred in Louisiana and that the state had a vested interest in the case. However, the trial judge maintained the exception of improper venue, allowing Digital to amend its petition multiple times. In subsequent filings, Digital claimed an amendment to the original contract had been agreed upon but not executed by the defendants, suggesting it was not bound by the original terms. The trial judge found the forum-selection clause valid after considering the pleadings and witness testimonies, particularly from Digital officers who confirmed discussions regarding the clause prior to signing. The judge determined that a binding contract existed and that the disputes fell within its provisions. Ultimately, the court found no evidence of fraud or violation of fairness regarding the contract. Digital was ordered to bear the costs of the appeal.