Rivera v. Kress Stores of Puerto Rico, Inc., No. 21-1331 (1st Cir. 2022)
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The First Circuit vacated the order of the district court dismissing this action, holding that the court erred in characterizing the forum selection clause in this case as mandatory.
Plaintiff Zuleyka Rivera, a former Miss Universe, sued Kress Stores of Puerto Rico, Inc. and Mark Berezdivin in federal district court alleging breach of contract and tort claims in connection with an agreement between the parties granting Kress Stores exclusive rights to use Plaintiff's name, pageant title, image, and likeness for the development and promotion of branded items of apparel and fragrances. When Kress Stores failed to pay Plaintiff the stipulated annual stipend she sued in federal district court. The district court granted Kress Stores' motion to dismiss, concluding that the suit was brought in contravention of the agreement's forum selection clause. The First Circuit vacated the judgment below, holding (1) the agreement's forum selection clause did not by its terms exclude jurisdiction in another court; and (2) therefore, the district court erred in dismissing the action based on the forum selection clause.
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