Supreme Court of Virginia
Rmbs Recovery Holdings, I, LLC v. Hsbc Bank USA, N.a. Hsbc Bank USA, N.a. v. Rmbs Recovery Holdings, I, LLC…
May 30, 2019827 S.E.2d 762
Summary
The Supreme Court of Virginia held that the Fairfax Circuit Court erred in dismissing the case based on the parties' forum selection clauses, finding that HSBC waived its right to enforce those clauses by delaying assertion and using the Virginia court’s machinery. The Court affirmed the lower court’s denial of HSBC’s forum non conveniens motion, concluding that good cause did not exist to transfer the case to New York. The judgment was affirmed in part, reversed in part, and remanded for further proceedings.
Holding
- Whether the circuit court erred in granting HSBC’s motion to dismiss the amended complaint based on the forum selection clauses, including whether the motion was timely and whether HSBC waived its right to enforce the clauses.. The circuit court erred; HSBC’s delay in asserting the forum selection clauses, coupled with its extensive use of the Virginia court’s litigation machinery, constituted a waiver of the right to enforce the clauses, so the dismissal was reversed.
- Whether the circuit court erred in denying HSBC’s motion to dismiss the action on the basis of forum non conveniens.. The circuit court did not abuse its discretion; the denial of the forum non conveniens motion is affirmed.
Docket Record 180473; Record 180557