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Land O'Sun Management Corp. v. Commerce & Industry Insurance Co.
Citations: 961 So. 2d 1078; 2007 Fla. App. LEXIS 11453; 2007 WL 2126288Docket: No. 1D06-5331
Court: District Court of Appeal of Florida; July 26, 2007; Florida; State Appellate Court
The trial court's dismissal of Appellant's claim without leave to amend and its order for any further action to occur in New York is affirmed. Appellee issued an insurance policy for Appellant’s gas station, covering defense costs related to administrative proceedings for cleanup due to underground pollution. Appellee refused to defend Appellant, arguing the contamination predated the policy's retroactive date. Although the Florida Department of Environmental Regulation agreed, it confirmed Appellant was entitled to remediation costs under Florida Statutes. Appellant sued for reimbursement of defense costs, claiming wrongful failure to defend. Appellee moved to dismiss or transfer the case based on a mandatory forum selection clause in the policy stating that disputes must be resolved in New York under New York law. Appellant acknowledged the clause but argued enforcement would be unreasonable, violating Florida’s environmental interests. The court declined to invalidate the clause on public policy grounds, emphasizing that mandatory forum selection clauses are enforceable unless proven unreasonable or unjust. The court cited established tests requiring proof of significant hardship to escape the clause, which Appellant failed to demonstrate. The approval of the policy by the Office of Insurance Regulation further supported the clause's validity. Consequently, the court affirmed the dismissal and venue determination.