The Easy Way and the Hard Way
In the law, there are often two paths to a given destination. There is the easy way. And there is the hard way. In a recent New Jersey case involving a forum selection clause, the plaintiff was ultimately successful in defeating the defendant’s motion to dismiss. But man, oh man… did the plaintiff do it…
Continue ReadingThe Sixth Circuit Tackles Forum Selection Clauses
When U.S. judges fight about forum selection clauses, they tend to fight about one of two things. First, they fight about whether a federal court sitting in diversity should apply state or federal law to determine whether a clause is valid and enforceable. Second, they fight about whether a non-signatory may be bound by a…
Continue ReadingFaux Forum Selection Clauses
In linguistics, a false friend (or faux ami) is a word from a different language that looks and sounds like a familiar word in English but, in fact, has a very different meaning. A classic example is the word “gift.” In English, the word means “present.” In German, the word means “poison.” These are not…
Continue ReadingImplied Jurisdiction Agreements in International Commercial Contracts
In an increasingly globalized economy, commercial transactions often involve business entities from different countries. These cross-border transactions present complex legal questions, such as the place where potential disputes will be adjudicated. To provide certainty, commercial parties often conclude ex ante agreements on the venue for dispute resolution by selecting the court(s) of a particular state. However,…
Continue ReadingTexas, 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 ReadingForum Selection Agreements as Indicators of Implied Choice of Law
Originally posted on the EAPIL blog on 31 August 2023, and currently updated in this blog. In a recent article, I explore what should be globally significant in a forum selection agreement as an indicator of the implied choice of law when the agreement omits a choice-of-law clause. This topic is in itself a very old one,…
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…
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