Puerto Rico, Law 75, and Forum Selection Clauses
Many years ago, Puerto Rico’s legislature approved the Dealer’s Contract Act—known as Law 75—to protect local distributors. Law 75 provides that a principal dealing with a distributor in Puerto Rico may terminate a distribution agreement only for “just cause.” In an attempt to evade this law, out-of-state principals frequently write choice-of-law clauses and forum selection…
Continue ReadingA Troubling Decision in the EDNY
In the annals of troubling decisions relating to the enforcement of foreign forum selection clauses, a recent opinion, Gurung v. MetaQuotes, Ltd., by the U.S. District Court for the Eastern District of New York (Judge Orelia E. Merchant) warrants special mention. It raises the question whether any forum selection clause will ever be deemed unreasonable…
Continue ReadingChoice of Law in Terrorism Cases Redux
On September 16, 2024, the U.S. District Court for the District of Columbia (Senior Judge Richard J. Leon) decided Messina v. Syrian Arab Republic. This case is the latest in a long series brought by victims of state-sponsored terrorism in the District of Columbia. In a pair of prior posts, I argued that the courts’…
Continue ReadingReciprocity and the Hague Judgments Convention
In a prior post, I reported on recent developments that offer a basis for (cautious) optimism that the United States may soon take the necessary steps to ratify the Hague Judgments Convention (HJC). In this post, I explore how the issue of reciprocity might affect the ratification process. Reciprocity Reciprocity refers to the mutual recognition…
Continue ReadingUsing TLB to Teach Conflict of Laws (2024 Update)
This post updates our series explaining how professors can use resources on TLB to teach various classes. Previous posts have discussed Transnational Litigation, Civil Procedure, Foreign Relations Law, and International Business Transactions. This post discusses Conflict of Laws. All of these posts are accessible at our Teaching Resources page. Primers and Topic Pages Conflict of…
Continue ReadingThe Small Potatoes Problem with New York Forum Selection Clauses
New York has long sought to attract cases to its courts—and to generate business for New York lawyers—by enforcing New York forum selection clauses when they appear in commercial contracts worth at least $1 million that are governed by New York law. This policy is codified in New York General Obligations Law 5-1402. What happens,…
Continue ReadingA Troubling Decision in the Fifth Circuit
The Fifth Circuit has issued a number of opinions over the years relating to the enforceability of forum selection clauses in transnational cases. Its recent decision in Matthews v. Tidewater, Inc. is among the most troubling. Background The plaintiff, Marek Matthews, worked as a seaman and captain from 1982 to 2016 on offshore supply vessels…
Continue ReadingRecent Developments Concerning the Hague Judgments Convention and COCA
Although the United States signed Hague Convention on Choice of Court Agreements (COCA) in 2009, it has yet to ratify it. In this post, I report on some recent developments that offer a basis for (cautious) optimism that the United States may soon take the necessary steps to ratify both COCA and the Hague Judgments…
Continue ReadingLiability Waivers and Statutory Interpretation
In 1936, Congress passed a law to prevent companies in the business of transporting people across the ocean from writing liability waivers into their contracts. That law, currently codified at 46 U.S.C. 30527(a), reads as follows: The owner, master, manager, or agent of a vessel transporting passengers between ports in the United States, or between…
Continue ReadingGreat Lakes in Action
On February 21, 2024, the U.S. Supreme Court decided Great Lakes Insurance SE v. Raiders Retreat Realty Co., LLC. Loyal readers will remember (see here and here and here and here) that this case presented the question of what test to apply to determine the enforceability of a choice-of-law clause governed by federal maritime law….
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