Motorsports of Melbourne, Inc. v. Mt. Hawley Insurance Company
- Lewis Liman
- 1:25-cv-01492
- U.S. District Court · Southern District of New York
- 4
In Motorsports of Melbourne v. Mt. Hawley, Judge Liman granted transfer to New York under the insurance policy’s mandatory forum-selection clause.
Motorsports of Melbourne, Inc.’s insurance dispute was transferred from the Middle District of Florida to the Southern District of New York, where the case was to continue.
What happened
Motorsports of Melbourne, Inc. v. Mt. Hawley Insurance Company concerns an insurance dispute over alleged windstorm and hail damage to the plaintiff’s property. The defendant asked to move the case from Florida to New York under the policy’s forum-selection clause, and the plaintiff did not oppose the request.
The court held that the clause required lawsuits under the policy to be initiated in New York. Because the clause was mandatory and the plaintiff did not challenge it, the court granted the defendant’s amended motion to transfer venue.
Judge Liman’s order directed the Clerk to transfer the case to the United States District Court for the Southern District of New York and close the Florida case. The order did not state a decision on whether the insurer breached the policy.
The detailed version
- Motorsports of Melbourne, Inc. v. Mt. Hawley Insurance Company · No. 1:25-cv-01492
- Lewis Liman
- Feb. 19, 2025
Background
Motorsports of Melbourne, Inc. sued Mt. Hawley Insurance Company over alleged damage to the roof and interior of its property from a windstorm and hail event in April 2028. The complaint alleges that Mt. Hawley breached the insurance contract by not paying for the loss. The plaintiff initially filed in Florida state court, and Mt. Hawley removed the case to the United States District Court for the Middle District of Florida.
Motion to Transfer
Mt. Hawley filed an amended motion under 28 U.S.C. § 1404(a) asking the court to transfer the case to the United States District Court for the Southern District of New York. Motorsports of Melbourne did not respond before the deadline, so the court treated the motion as unopposed.
The insurance policy included a forum-selection clause. It stated that matters arising under the policy would be governed by New York law and that litigation brought by a named insured, additional insured, or beneficiary against the company “shall be initiated in New York.” The clause also stated that it did not waive Mt. Hawley’s right to remove a case to a federal court.
Court’s Analysis
The court concluded that the word “shall” made the forum-selection clause mandatory. It explained that courts ordinarily enforce a valid mandatory forum-selection clause and transfer a case to the specified forum unless extraordinary circumstances exist. The court found that the clause unambiguously required this action to be adjudicated in New York. It also noted that the plaintiff had not opposed the transfer or challenged the clause’s validity.
Disposition
The court granted Mt. Hawley’s amended motion to transfer venue. It directed the Clerk to transfer the case to the Southern District of New York and close the Middle District of Florida case. The order addressed venue and did not state a ruling on the merits of the insurance-breach allegations.
Read the full 4-page opinion on CourtListener, the free public archive maintained by the Free Law Project.