Macphail v Oceaneering International Inc - US Court of Appeals (5th Circuit) (Davis, DeMoss and Stewart Ct JJ) - 7 August 2002

Conflict of laws - Validity of contractual forum selection clause in Deed of Release and Discharge - Whether US court entitled to grant injunction preventing defendant from prosecuting proceedings in Australia

The plaintiff worked as a diver for the defendant onboard a dive support vessel operating in the South China Sea. Whilst performing saturation diving (which required him to be "stored" at a depth of 100 feet for a 3-day period), the plaintiff became severely ill. Later analysis of the seabed indicated that the mud on the bottom contained toxic levels of arsenic, mercury, cyanide, hydrogen sulfide and polychlorinated biphenyls. After receiving some medical treatment in Australia, where he lived, the plaintiff was told that nothing more medically could be done for him, and the parties negotiated an agreed settlement whereby, in consideration of receiving $280,000, a commitment by the defendant to provide him with additional training courses, and a $25,000 escrow fund to cover future medical expenses, the plaintiff signed a Deed of Release and Discharge. The Release included a forum selection clause which provided: