A forum selection clause is a contractual provision that selects a court to resolve disputes. When suit is filed in a jurisdiction that is not the chosen forum, the clause may provide a basis for dismissal or transfer. When suit is filed in the chosen forum, the clause may provide a basis for asserting personal jurisdiction over the defendant.
A Primer on Forum Selection Clauses
A forum selection clause is a contractual provision that selects a specific court to resolve disputes. When suit is filed in a court that is not the chosen forum, the clause may provide a basis for dismissal or transfer. When suit is filed in the chosen forum, the clause may provide a basis for the…
Continue ReadingX Has a New Forum Selection Clause
The company formerly known as Twitter (“X”) has announced that it will adopt new Terms of Service (“TOS”) effective November 15, 2024. Among other things, the new TOS includes a new forum selection clause. The clause in the old TOS required lawsuits against X to be brought in California. The clause in the new TOS…
Continue ReadingPuerto 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…
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