Splitting the Difference on the Closely-Related-and-Foreseeable Test
Over the past decade, the lower federal courts have repeatedly considered whether non-signatories to a contract are bound by a forum selection clause if they are so “closely related” to a signatory that it is “foreseeable” that they would be bound. In some cases, their decisions are defensible, as discussed here. In others, their decisions…
Continue ReadingParsing Invalidating Statutes (Part II)
In a prior post, I argued that the precise language used in state statutes purporting to invalidate choice-of-law clauses and forum selection clauses can have outsized effects in litigation. In this post, I continue this discussion by highlighting several statutes that purport to invalidate choice-of-law clauses in insurance contracts. Although these statutes all have the…
Continue ReadingParsing Invalidating Statutes (Part I)
In previous posts, I have written about how the precise language used in a choice-of-law or forum selection clause can prove consequential in litigation. In this post, I argue that the precise language used in state statutes purporting to invalidate these clauses can likewise have an outsized effect. There are hundreds of state statutes that…
Continue ReadingFinancial Hardship and Forum Selection Clauses
The U.S. Supreme Court has long held that a forum selection clause should not be enforced when “trial in the contractual forum will be so gravely difficult and inconvenient” that the plaintiff “will for all practical purposes be deprived of his day in court.” The financial status of the plaintiff is obviously a factor that…
Continue ReadingOptionality in Choice of Law
Choice-of-law clauses are sometimes described as tools for reducing legal uncertainty. This characterization, while correct, is incomplete. In cases where the suit is brought in a jurisdiction other than the one named in the choice-of-law clause, it is sometimes more accurate to think of the clause as an option. Either litigant may, if it so…
Continue ReadingDrafting the Opinion in Great Lakes
Over the past six years, I have spent a lot of time thinking about choice-of-law clauses. I have written about how to interpret them, about their extraterritorial effect, about their history, and about why insurance companies frequently omit them from their policies. If a pub were ever to host a trivia night devoted to choice-of-law…
Continue ReadingOral Argument in Great Lakes
On October 10, 2023, the U.S. Supreme Court heard oral argument in Great Lakes Insurance v Raiders Retreat Realty LLC. The issue presented was whether, as a matter of federal admiralty law, a choice-of-law clause in a maritime contract may be rendered unenforceable if enforcement is contrary to the “strong public policy” of the state…
Continue ReadingBinding Non-Signatories to Service-of-Process Clauses
I have previously blogged about attempts to bind non-signatories to choice-of-law clauses and forum selection clauses via the closely-related-and-foreseeable doctrine. My general take is that while it is sometimes appropriate to rely on this doctrine in cases involving forum selection clauses, it is never appropriate to rely on it to bind a non-signatory to a…
Continue ReadingChoice of Law in Terrorism Cases
The U.S. District Court for the District of Columbia (DDC) is routinely called upon to adjudicate civil cases where plaintiffs bring claims against foreign sovereigns on behalf of themselves or relatives who were killed or injured in terrorist attacks overseas. If the plaintiff is neither a U.S. national, a U.S. servicemember, a U.S. government employee,…
Continue ReadingMissed Opportunities in Great Lakes
In the 1994 film, Clerks, the main character works at a quick-stop grocery store in New Jersey. On his day off, he gets a call from his boss asking him to cover the shift of another employee. As he grapples with a stream of difficult customers during the course of this unexpected shift, he keeps…
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