Texas, Insurance Contracts, and Foreign Forum Selection Clauses
A pair of recent Fifth Circuit cases — both involving damage to yachts — suggest that that court will enforce foreign forum selection clauses even when they appear in insurance contracts. This post first describes these cases. It then queries whether enforcing foreign forum selection clauses against Texas policyholders is, in fact, consistent with the…
Continue ReadingOral Arguments in Billion-Dollar Choice-of-Law Case
On January 10, 2024, the New York Court of Appeals heard oral arguments in Petroleos de Venezuela S.A. v. MUFG Union Bank, N.A. The issue presented in this case, as previously discussed here and here and here, is whether a U.S. court should apply the law of New York or the law of Venezuela to…
Continue ReadingNew Empirical Study on CISG Litigation
There are a number of empirical studies about the United Nations Convention on Contracts for the International Sale of Goods (CISG). A recent intervention by Carolina Arlota and Brian McCall, When Federal Law Goes Unnoticed: Assessing the CISG’s Applicability Across U.S. Courts Based on an Empirical Research of Decisions from 1988 to 2020, in the…
Continue ReadingHappy New Year!
TLB will be on winter break until January 9, 2024. We wish you all the best in the new year!
Continue ReadingIncorporation by Reference and Choice of Law
The choice-of-law clause written into the contract of carriage for Delta Air Lines, Inc. (Delta) states that the agreement “shall be governed by and enforced in accordance with the laws of the United States of America and, to the extent not preempted by Federal law, the laws of the State of Georgia.” In a recent…
Continue ReadingSplitting 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…
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