Forum Selection Clauses: Different Regulations from the Perspective of Cruise Ship Passengers.

Abstract

The purpose of this paper is to discuss treatment of forum clauses and their effect on the rights of passengers cruising around the world, with special focus on the U.S. law compared with the regulation in the European Union. Cruise ships often sail between several countries, and if a dispute arises between a cruise line and a passenger, the latter will often have a choice between several jurisdictions. This option is very frequently curtailed by forum clauses in the cruise passenger ticket contract which in advance designates a specific forum as an exclusive place for dispute resolution. Albeit it seems very practical to agree in advance on the place where a potential law suit should be brought, the inequality of bargaining power and other reasons might raise the question whether such terms are fair. Naturally, a dilemma arises whether the law should protect a passenger who waived his right to bring a suit in jurisdiction of his choice or if the law should give protection to a cruise line which acts in accordance with the general principle pacta sunt servanda.