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Keywords

contractappealsummary judgmentappellantmaritime law

contractsummary judgmentappellantappellee

Related Cases

Milanovich v. Costa Crociere, S.p.A., 954 F.2d 763, 1993 A.M.C. 1034, 293 U.S.App.D.C. 332

Facts

Gregory Milanovich and Marjorie Koch-Milanovich booked a one-week Caribbean cruise on an Italian flag vessel owned by Costa Crociere, S.p.A. On February 7, 1988, while in international waters, Mr. Milanovich was injured when a deck chair collapsed. The Milanoviches filed a personal injury action in the U.S. District Court for the District of Columbia more than a year after the incident, prompting the cruise line to move for summary judgment based on a one-year limitation period stated in the passage ticket.

Appellants Gregory Milanovich and Marjorie Koch–Milanovich, a husband and wife residing in the District of Columbia, booked passage for a one-week Caribbean cruise on an Italian flag vessel owned by appellee Costa Crociere, S.p.A. The cruise disembarked from San Juan, Puerto Rico on February 6, 1988. On the morning of February 7, while the ship was in international waters, the deck chair upon which Mr. Milanovich was sitting collapsed, allegedly causing him serious injury.

Issue

Whether the choice-of-law provision in the passenger's ticket adopting Italian law was enforceable and whether the one-year limitation period for filing personal injury actions was valid under Italian law.

The Milanoviches challenge the district court's refusal to enforce the choice-of-law provision contained in their passage ticket.

Rule

Under American maritime law, contractual choice-of-law provisions are generally honored unless enforcement would be unreasonable or unjust, or if the clause is invalid due to fraud or overreaching.

Under American law, contractual choice-of-law provisions are usually honored.

Analysis

The court determined that the choice-of-law provision in the Milanoviches' passage ticket was enforceable, as the parties had not demonstrated that its enforcement would be unreasonable or unjust. The court noted that under Italian law, the one-year limitation on filing suit was invalid, thus allowing the Milanoviches' claim to proceed despite being filed after the one-year mark under U.S. law.

The Milanoviches' passage ticket designates Italian law as the ruling law of the contract. Appellees, the parties opposing enforcement of that provision, have not demonstrated that the choice-of-law clause is unjust or unreasonable or that its enforcement would violate American public policy.

Conclusion

The Court of Appeals vacated the district court's summary judgment and remanded the case for further proceedings, allowing the Milanoviches' personal injury claim to be adjudicated under Italian law.

The summary judgment of the district court is vacated and the case is remanded for further proceedings to adjudicate appellants' personal injury claim.

Who won?

Appellants Gregory Milanovich and Marjorie Koch-Milanovich prevailed because the court found that the choice-of-law provision adopting Italian law was enforceable and that the one-year limitation was invalid under that law.

For reasons given below, we vacate the judgment and remand for further proceedings on appellants' claim.

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