Kuehne + Nagel, Inc. v. OJ Commerce, LLC
The Fourth DCA reversed the trial court's award of attorneys' fees under Florida's offer of judgment statute (§768.79) where the parties' shipping agreement contained a New York choice-of-law provision at the time the proposal for settlement was served. The court held that §768.79 is a substantive right unavailable where out-of-state law governs, and that OJC's later waiver of the choice-of-law clause during litigation could not retroactively validate a proposal that was ineffective when served.
Key facts
- Kuehne + Nagel (K+N) and OJ Commerce LLC (OJC) entered into a shipping agreement containing a New York choice-of-law clause; when the parties' relationship broke down, OJC sued K+N in Broward County Circuit Court.
- K+N's initial motion to dismiss cited the New York choice-of-law provision and sought transfer to New York; shortly thereafter, while the motion to dismiss was still pending and before K+N had invoked Florida law, OJC served K+N with a proposal for settlement under §768.79.
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Holdings
- Section 768.79, Florida Statutes (offer of judgment / proposal for settlement), is a substantive right for choice-of-law purposes and is inapplicable where the parties' contract designated…
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Why it matters
First published 4th DCA opinion directly addressing the timing of choice-of-law waiver in relation to Florida's offer of judgment statute. The rule: a proposal for settlement served under §768.79 is void from inception… — full analysis with a trial
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