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Case Summary: Kathy Wilcox et al. v. Lexington Eye Institute et al., No. 53871-3-I (Wash. Ct. App. Aug. 15, 2005)

Factual and Procedural Background

Kathy Wilcox and Brodie Smith, Washington residents, traveled to Surrey, British Columbia in 1999 for LASIK surgery at Lexington Eye Institute. Both received preoperative examinations (one at Focus Eye Care in Bellevue and one at Lexington), signed consent forms containing a forum selection clause designating the courts of British Columbia as the sole forum, and underwent LASIK performed by Dr. Murray McFadden (and Wilcox later by Dr. Peter Stockdill). Both suffered complications. On May 31, 2002, Wilcox and Smith sued Lexington, Dr. McFadden, and Dr. Stockdill in King County Superior Court; a default judgment was entered against Lexington. Smith later amended to add Focus and Gretchen Ariz, O.D. Dr. McFadden moved to dismiss for lack of personal jurisdiction and improper venue; Dr. Stockdill moved to dismiss for improper venue. The trial court enforced the forum selection clause in the Lexington consent form and dismissed Wilcox's King County action against the surgeons on April 11, 2003; Wilcox's reconsideration motions were denied. In January 2004 the court dismissed Smith's claims against Focus and Dr. Ariz as barred by the statute of limitations. On appeal, Wilcox challenges enforcement of the forum selection clause (and alternatively contends collateral estoppel may bar the clause); Smith appeals the statute-of-limitations dismissal of his claims. The Court of Appeals affirmed enforcement of the forum selection clause, remanded to determine whether one surgeon is collaterally estopped from asserting improper venue, and concluded Smith's claims against Focus and the optometrist are barred by the statute of limitations.

Legal Issues Presented

  1. Whether the forum selection provision in the Lexington Laser Vision Surgical Consent Form (designating British Columbia courts as the sole forum) is enforceable against Wilcox.
  2. Whether Wilcox met her burden to show the forum selection clause is unreasonable or unjust (including claims of mutual mistake, fraud, undue influence, overweening bargaining power, lack of consideration).
  3. Whether the trial court abused its discretion in denying Wilcox's CR 59 motion for reconsideration that raised new arguments.
  4. Whether one of the surgeons is collaterally estopped from asserting improper venue (remanded for determination).
  5. Whether Smith's claims against Focus Eye Care and Gretchen Ariz, O.D. are barred by the statute of limitations (whether genuine issues of material fact exist about timely filing within the statutory one-year discovery period).

Arguments of the Parties

Appellants' (Wilcox and Smith) Arguments

  • Wilcox: The forum selection clause is unenforceable; initially argued mutual mistake, and on reconsideration asserted fraud, undue influence, overweening bargaining power, and lack of consideration (and alleged misrepresentation of surgeon qualifications on Lexington materials).
  • Smith: Contended there are genuine issues of material fact about whether he timely filed his lawsuit within the statutory one-year discovery period (statute of limitations defense disputed).

Respondents' (Dr. McFadden and Dr. Stockdill) Arguments

  • Moved to dismiss: Dr. McFadden for lack of personal jurisdiction and improper venue; Dr. Stockdill for improper venue.
  • Argued the trial court's enforcement of the forum selection clause should be reviewed for abuse of discretion and that Wilcox failed to produce evidence why the clause should not be enforced.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
Voicelink Data Services, Inc. u. Datapulse, Inc., 86 Wn. App. 613, 937 P.2d 1158 (1997) Establishes that a party challenging a forum selection clause bears a heavy burden to show it should not be enforced. The court relied on Voicelink for the heavy-burden standard and concluded Wilcox failed to meet that burden.
Bank of Am., N.A. v. Miller, 108 Wn. App. 745, 33 P.3d 91 (2001) Supports that the court does not accept the pleadings as true and the challenger bears a heavy burden. Cited to reinforce the evidentiary burden on the party opposing enforcement of the clause.
Pelleport Investors, Inc. v. Budco Quality Theatres, Inc., 741 F.2d 273, 280 (9th Cir. 1984) Quoted for the proposition that absent evidence of fraud, undue influence, overweening bargaining power, or serious inconvenience, forum selection clauses should be respected. Quoted to define the types of evidence required to overcome enforcement of the clause.
Reitz v. Knight, 62 Wn. App. 575, 814 P.2d 1212 (1991) Permits a new theory based on evidence presented in a nonjury bench trial to be raised first in a motion for reconsideration (narrow context). The court distinguished Reitz and held Wilcox's new theories were not the type of trial-based new theory Reitz permits.
Perry v. Hamilton, 51 Wn. App. 936, 756 P.2d 150 (1988) Motions for reconsideration are addressed to the sound discretion of the trial court; appellate reversal requires manifest abuse of discretion. Cited for the standard that reconsideration rulings are reviewed for abuse of discretion.
Wagner Dev., Inc. v. Fid. Deposit Co. of Md., 95 Wn. App. 896, 977 P.2d 639 (1999) Defines abuse of discretion as a decision based on untenable grounds or reasons. Used to describe the standard for reversal of the trial court's denial of reconsideration.
State v. Williams, 96 Wn.2d 215, 634 P.2d 868 (1981) Principle regarding abandonment of issues on appeal. Applied to conclude Wilcox abandoned her mutual mistake argument by not raising it on appeal.
Transamerica Ins. Group v. United Pac. Ins. Co., 92 Wn.2d 21, 593 P.2d 156 (1979) Also cited for abandonment of issues not argued on appeal. Used with State v. Williams to support finding of abandonment.
JDFJ Corp. v. Int'l Raceway, Inc., 97 Wn. App. 1, 970 P.2d 343 (1999) CR 59 does not permit a plaintiff to propose new theories that could have been raised before entry of an adverse decision. Applied to reject Wilcox's presentation of new legal theories in her motion for reconsideration.
Gerimonte v. Case, 42 Wn. App. 611, 712 P.2d 876 (1986) Example of a case where unfair persuasion or misrepresentation rendered a clause unenforceable. Distinguished: the court found Wilcox presented no evidence comparable to Gerimonte's showing of unfair persuasion or misrepresentation.
Zuver v. Airtouch Commc'ns, 153 Wn.2d 293, 103 P.3d 753 (2004) Holds that adhesion contracts are not necessarily unenforceable. Cited to reject Wilcox's contention that an adhesion contract status alone renders the forum clause unenforceable.
Mendez v. Palm Harbor Homes, Inc., 111 Wn. App. 446, 45 P.3d 594 (2002) Supports that adhesive-form contract terms are not automatically unenforceable. Used alongside Zuver to counter Wilcox's adhesion-contract argument.
Multicare Med. Ctr. v. Dep't of Soc. Health Servs., 114 Wn.2d 572, 790 P.2d 124 (1990) States that performance of a preexisting legal obligation does not constitute valid consideration. Invoked in discussing Wilcox's lack of evidence that Dr. McFadden had a preexisting legal obligation undermining consideration.

Court's Reasoning and Analysis

The court framed the central inquiry under the heavy-burden standard from Voicelink and related Washington authorities: a party opposing enforcement of a forum selection clause must present evidence of fraud, undue influence, overweening bargaining power, or such serious inconvenience that the party would be deprived of a meaningful day in court. The court noted the parties disputed the standard of appellate review but concluded Wilcox failed to carry her burden under either de novo review or abuse of discretion review. The court found Wilcox had multiple opportunities to review the consent form (mailed materials and signing at Lexington), initialed pages, and signed immediately beneath a conspicuous "Jurisdiction" heading; she produced no evidence of unfair persuasion or misrepresentation comparable to Gerimonte. The court rejected Wilcox's post-judgment theories raised in a CR 59 motion because she abandoned the mutual-mistake argument on appeal, and CR 59 does not permit new legal theories that could have been timely presented; Reitz was distinguished as inapplicable. The court also rejected the argument that adhesive-contract status or lack of consideration automatically invalidated the clause, citing Zuver, Mendez, and Multicare, and observed no evidence of undue influence or a preexisting legal obligation by the surgeon. Based on these applications of law to the undisputed facts about Wilcox's receipt and signing of the consent form, the court affirmed enforcement of the forum selection clause. The opinion also notes the court remanded to determine whether one of the surgeons is collaterally estopped from asserting improper venue and concluded Smith's claims against Focus and the optometrist are barred by the statute of limitations; detailed analysis of those determinations is not contained in the parts of the opinion provided.

Holding and Implications

Holding: The Court of Appeals affirmed the trial court's enforcement of the forum selection provision in the Lexington consent form, remanded to determine whether one surgeon is collaterally estopped from asserting improper venue, and concluded that Smith's claims against Focus Eye Care and Gretchen Ariz, O.D. are barred by the statute of limitations.

Implications: The direct effect is that Wilcox's King County action was dismissed based on enforcement of the British Columbia forum selection clause; Smith's claims against the Bellevue optometry defendants were dismissed as time-barred. The opinion states the remainder has no precedential value and thus does not establish new binding precedent beyond the application of existing authorities to these facts.

KATHY WILCOX ET AL., Indi v. dually and on Behalf of a Marital Community, Appellants,

SCHINDLER, J.

¶1 Kathy Wilcox and Brodie Smith went to Canada for laser assisted in situ keratomileusis (LASIK) eye surgery. Wilcox and Smith filed a lawsuit in King County Superior Court against the Canadian surgical facility and two Canadian ophthalmic surgeons for complications from the LASIK surgery. In an amended complaint, Smith sued the Bellevue optometry center and the optometrist who conducted a preoperation examination before his LASIK surgery. The Canadian surgeons moved to dismiss for lack of jurisdiction and improper venue. The trial court ruled Wilcox did not carry her burden to show the agreement to sue in Canada was unreasonable and dismissed her lawsuit. On appeal, Wilcox contends she met her burden and the forum selection provision is not enforceable. In the alternative, Wilcox argues the surgeons are collaterally estopped from asserting the forum selection clause. On summary judgment, the trial court ruled Smith's claims against the Bellevue optometry center and the optometrist were barred by the statute of limitations. Smith contends there are genuine issues of material fact about whether he timely filed his lawsuit within the statutory one-year discovery time period. We affirm the trial court's decision to enforce the forum selection provision but remand to determine whether one of the surgeons is collaterally estopped from asserting improper venue. We conclude Smith's claims against the Bellevue optometry center and the optometrist are barred by the statute of limitations.

FACTS

¶2 In 1999, Washington residents Kathy Wilcox and Brodie Smith went to Surrey, British Columbia for LASIK surgery at Lexington Eye Institute (Lexington). Before the scheduled eye surgery, Lexington sent Wilcox and Smith information about LASIK surgery and surgery consent forms. Wilcox and Smith also had preoperation eye examinations. The first was at Focus Eye Care, Inc. (Focus), in Bellevue; the second was at Lexington prior to surgery. On the day of the eye surgery at Lexington, Wilcox and Smith signed an eye surgery consent form. On June 22, 1999 and September 29, 1999, Dr. Murray McFadden performed LASIK eye surgery on Smith and Wilcox. Wilcox subsequently returned to Lexington for a second surgical procedure performed by Dr. Peter Stockdill. Wilcox and Smith each suffered complications from LASIK eye surgery.

¶3 On May 31, 2002, Wilcox and Smith sued Lexington, Dr. McFadden, and Dr. Stockdill in King County Superior Court. The court entered a default judgment against Lexington. In March 2003, Smith filed an amended complaint naming Focus and Gretchen Ariz, O.D., the Focus optometrist who performed a preoperation examination, as additional defendants. Dr. McFadden filed a motion to dismiss for lack of personal jurisdiction and improper venue. Dr. Stockdill filed a motion to dismiss for improper venue. The trial court ruled the forum selection provision in the "Lexington Laser Vision Surgical Consent Form" was enforceable and on April 11, 2003, entered an order dismissing the lawsuit filed in King County against Dr. McFadden and Dr. Stockdill. On April 22, Wilcox filed motions for reconsideration, which the court denied. In January, 2004, the court dismissed Smith's claims against Focus and Dr. Ariz as barred by the statute of limitations. Wilcox appeals the trial court's decision to enforce the forum selection clause and deny her motions for reconsideration. Smith appeals the order dismissing his claims against Focus and Dr. Ariz as barred by the statute of limitations.

Wilcox and Smith sued as individuals and on behalf of their marital communities.

Lexington is no longer in business.

Clerk's Papers (CP) at 304-10.

The April 11, 2003 order also dismissed Smith's claims against Dr. McFadden and Dr. Stockdill based on the forum selection clause in the surgery consent form. Smith does not challenge this order on appeal.

ANALYSIS

Forum Selection Clause

¶4 Wilcox claims the trial court erred in dismissing her lawsuit based on the forum selection provision in the LASIK Eye Surgery Consent Form that designates Canada as the proper forum for the suit. Relying on our decision in Voicelink Data Services, Inc. u. Datapulse, Inc., 86 Wn. App. 613, 937 P.2d 1158 (1997), the trial court ruled that Smith "failed to produce any evidence as to why the forum selection clause should not be enforced."

CP at 2133.

¶5 The parties disagree about the proper standard of review. Wilcox argues review is de novo. Dr. McFadden and Dr. Stockdill argue we should review the trial court's decision for abuse of discretion. Here, as in Voicelink, the question is whether Wilcox met her burden of proving that the forum selection clause should not be enforced. We conclude Wilcox failed to meet her burden under either a de novo or an abuse of discretion standard.

¶6 Washington courts will enforce a forum selection clause unless it is unreasonable or unjust. Voicelink, 86 Wn. App. at 618. Because the court does not accept the pleadings as true, the party challenging a forum selection provision bears a heavy burden to show it should not be enforced. Id. at 618; Bank of Am., N.A. v. Miller, 108 Wn. App. 745, 748, 33 P.3d 91 (2001). "`[A]bsent some evidence submitted by the party opposing enforcement of the clause to establish fraud, undue influence, overweening bargaining power, or such serious inconvenience in litigating in the selected forum so as to deprive that party of a meaningful day in court, the provision should be respected as the expressed intent of the parties.'"

Voicelink, 86 Wn. App at 618 (quoting Pelleport Investors, Inc. v. Budco Quality Theatres, Inc., 741 F.2d 273, 280 (9th Cir. 1984)).

¶7 Wilcox, a bank manager in Harrington, Washington, learned about Lexington from her sister who traveled to Canada to have LASIK surgery done there. Wilcox also read about Lexington on its website. The website described the surgery and included information about the surgeons. Wilcox called Lexington and paid for her surgery by credit card. She then received a "Surgical Information Guide" and a "Laser Eye Surgery Consent Form" from Lexington.

CP at 283-302.

¶8 On the last page before the signature line, the consent form contains a forum selection clause designating Canada as the sole forum for any disputes related to LASIK surgery.

Jurisdiction

I hereby acknowledge that the treatment will be performed in the Province of British Columbia and the Courts of the Province of British Columbia shall have sole jurisdiction to entertain any complaint, demand, claim or cause of action, whether based on alleged breach of contract or alleged negligence arising out of the treatment. I hereby agree that if I commence any such legal proceedings they will be only in the Courts of the Province of British Columbia, and I hereby irrevocably submit to the exclusive jurisdiction of the Courts of the Province of British Columbia.[ ]

¶9 On September 29, 1999, before her scheduled surgery with Dr. McFadden, Wilcox met with a Lexington representative to review and sign the "Lexington Laser Vision Surgical Consent Form." The surgery consent form contained a forum selection clause that was identical to the Laser Eye Surgery Consent Form Wilcox had received in the mail and previously reviewed. Wilcox initialed each page of the Lexington Laser Vision Surgical consent form on September 29 and signed directly below the forum selection provision. During Wilcox's LASIK surgery, Dr. McFadden incorrectly programmed the LASIK equipment for Wilcox's eye surgery. On February 25, 2000, Wilcox returned to Lexington for another LASIK eye surgery. She signed another surgical consent form and Dr. Peter Stockdill performed the second surgical procedure on her.

CP at 304-10.

CP at 283-302.

¶10 Below, Dr. McFadden filed a motion to dismiss for lack of personal jurisdiction and improper venue. Dr. Stockdill filed a motion to dismiss based solely on improper venue. In opposition to the motion to dismiss, Wilcox focused primarily on Dr. McFadden's lack of jurisdiction argument. In response to the motions to dismiss for improper venue, Wilcox relied exclusively on the doctrine of mutual mistake to argue that the forum selection provision in the consent form was unenforceable. The trial court ruled Wilcox failed to carry her burden of showing why the forum selection provision should not be enforced and entered the order of dismissal on April 11, 2003. Wilcox filed a CR 59 motion for reconsideration on April 22. In her motion for reconsideration, Wilcox argued the forum selection clause should not be enforced because of fraud, undue-influence, overweening bargaining power, and lack of consideration. The trial court denied the motion to reconsider.

Wilcox claimed Dr. McFadden misrepresented his qualifications on the website and in the Lexington surgical information guide.

¶11 On appeal, Wilcox abandons her argument of mutual mistake altogether and instead relies exclusively on the new arguments she raised for the first time in her CR 59 motion for reconsideration. Motions for reconsideration are addressed to the sound discretion of the trial court and a reviewing court will not reverse a trial court's ruling absent a showing of manifest abuse of discretion. Perry v. Hamilton, 51 Wn. App. 936, 938, 756 P.2d 150 (1988). A trial court abuses discretion when its decision is based on untenable grounds or reasons. Wagner Dev., Inc. v. Fid. Deposit Co. of Md., 95 Wn. App. 896, 906, 977 P.2d 639 (1999).

Wilcox does not argue mutual mistake on appeal. Therefore, we conclude the issue has been abandoned. State v. Williams, 96 Wn.2d 215, 226, 634 P.2d 868 (1981); Transamerica Ins. Group v. United Pac. Ins. Co., 92 Wn.2d 21, 28-29, 593 P.2d 156 (1979)).

¶12 Relying on Reitz v. Knight, 62 Wn. App. 575, 581 n. 4, 814 P.2d 1212 (1991), Wilcox claims she can raise new theories of law for the first time in a motion for reconsideration. Wilcox's reliance on Reitz is misplaced. In Reitz, we held that a new theory based on the evidence presented in a nonjury bench trial could be raised for the first time in a motion for reconsideration. But here, the motion for reconsideration arguments were based on new legal theories with new and different citations to the record. Wilcox offers no explanation for why these arguments were not timely presented. CR 59 does not permit a plaintiff to propose new theories of the case that could have been raised before entry of an adverse decision. JDFJ Corp. v. Int'l Raceway, Inc., 97 Wn. App. 1, 7, 970 P.2d 343 (1999).

¶13 In any event, Wilcox's new motion for reconsideration arguments are unpersuasive. First, unlike Gerimonte v. Case, 42 Wn. App. 611, 712 P.2d 876 (1986), Wilcox presented no evidence of unfair persuasion or misrepresentation by Dr. McFadden or Dr. Stockdill about the forum selection clause. Wilcox had the opportunity to read the Laser Eye Surgery Consent Form and the forum selection clause well in advance of her surgery and again at Lexington on the day of her surgery. The forum selection provision is clearly written and Wilcox's signature appears directly underneath a conspicuous "Jurisdiction" heading. Next, Wilcox argues that the forum selection provision is part of an unenforceable adhesion contract and there was no consideration. Even if the surgery consent form is an adhesion contract, it is not necessarily unenforceable. Zuver v. Airtouch Commc'ns, 153 Wn.2d 293, 103 P.3d 753 (2004); Mendez v. Palm Harbor Homes, Inc., 111 Wn. App. 446, 45 P.3d 594 (2002). The terms were not buried in fine print and Wilcox presents no evidence of undue influence to sign the surgery consent form and agree to the forum selection clause without a reasonable opportunity to consider the terms of the agreement. While performance of a preexisting legal obligation does not constitute valid consideration, there is no evidence that Wilcox asked for a refund or objected to the forum selection clause before the surgery. In addition, Wilcox presents no evidence that Dr. McFadden had a preexisting legal obligation. Multicare Med. Ctr. v. Dep't of Soc. Health Servs., 114 Wn.2d 572, 584, 790 P.2d 124 (1990).

CP at 301, 310, 320.

¶14 We conclude Wilcox failed to carry her burden to produce evidence that the forum selection clause is unfair or unreasonable and the trial court did not abuse its discretion in denying the motion for reconsideration.

¶15 The remainder of this opinion has no precedential value. Therefore, it will be filed for public record in accordance with the rules governing unpublished opinions.

KENNEDY and AGID, JJ., concur.

Review denied at 157 Wn.2d 1022 (2006).

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WILCOX v. LEXINGTON EYE INST
(Aug 15, 2005)