This was an appeal from the District Court’s final order dismissing the claims of Pacific Asian Enterprises (PAE) and enforcing a contractual forum selection clause.

Held: Appeal dismissed. The District Court’s order is affirmed.

It is clear from the face of the bill of lading that the parties intended that the US Carriage of Goods by Sea Act (COGSA) should control the contract of carriage. Both parties' experts testified that COGSA governed the terms of the contract formed in Antwerp, Belgium.

A forum selection clause will not be enforced when the substantive law to be applied will reduce the carrier’s obligations to the cargo owner below what COGSA guarantees. Given that the court in Antwerp will interpret the contract under COGSA, the substantive law that the court there will apply will not be less favourable to PAE than the United States court's application of COGSA: see Fireman's Fund Ins Co v MV DSR Atl131 F 3d 1336, 1339 (9th Cir 1997), quoting Vimar Seguros y Reaseguros SA v M/V Sky Reefer 515 US 528, 538 (1995) (CMI1456), holding that enforcement of a forum selection clause is unreasonable when 'the substantive law to be applied will reduce the carrier's obligations to the cargo owner below what COGSA guarantees').