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Encyclopedia > Forum selection clause

A forum selection clause is a clause in a contract in which the parties agree that any litigation resulting from that contract will be brought in a specific forum. The forum might refer to a particular court in a jurisdiction agreed upon by the parties; or it might refer to a specific kind of dispute resolution process, such as mediation, arbitration, or a mini-trial; or it might refer to both, requiring a specific process to be carried out in a specific location. A contract is any legally-enforceable promise or set of promises made by one party to another. ... A lawsuit is a civil action brought before a court in order to recover a right, obtain damages for an injury, obtain an injunction to prevent an injury, or obtain a declaratory judgment to prevent future legal disputes. ... This article is about courts of law. ... Dispute resolution is the process of resolving disputes between parties and includes lawsuits (litigation), arbitration, mediation, conciliation, and many types of negotiation. ... Mediation in broad sense is an act of bringing two states, sides or parties closer or together. ... Arbitration, in the law, is a form of alternative dispute resolution — specifically, a legal alternative to litigation whereby the parties to a dispute agree to submit their respective positions (through agreement or hearing) to a neutral third party (the arbitrator(s) or arbiter(s)) for resolution. ...


Forum selection clauses have been criticized by some courts for improperly divesting them of personal jurisdiction over the parties. Because of this, some jurisdictions refuse to recognize these clauses, declaring them to be void as against public policy. However, most jurisdictions now recognize and enforce forum selection clauses, so long as the there was no fraud or oppression involved in the signing of the contract. Personal jurisdiction, jurisdiction of (or over) the person, or jurisdiction in personam is the power of a court to require a party (usually the defendant) or a witness to come before the court. ... In the broadest sense a fraud is any crime (or civil wrong) for gain that utilises some deception practiced on the victim as its principal method. ...


The United States Supreme Court has upheld forum selection clauses on several occasions, and has suggested that they should generally be enforced. See The Bremen v. Zapata Offshore Co., 407 U.S. 1 (1972); Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (1991). The Supreme Court Building, Washington, D.C. The Supreme Court Building, Washington, D.C., (large image) The Supreme Court of the United States, located in Washington, D.C., is the highest court (see supreme court) in the United States; that is, it has ultimate judicial authority within the United States... Court citation is a standard system used in common law countries such as the United States, United Kingdom, and Canada to uniquely identify the location of past court cases in special series of books called reporters. ... 1972 was a leap year that started on a Saturday. ... Court citation is a standard system used in common law countries such as the United States, United Kingdom, and Canada to uniquely identify the location of past court cases in special series of books called reporters. ... 1991 is a common year starting on Tuesday of the Gregorian calendar. ...


It is important to note that a forum selection clause is different from a choice of law clause. A court that is selected as the forum for the resolution of a dispute may nevertheless apply the law of the place where the dispute arose, under general choice of law principles. However, a well-drafted contract will probably address both concerns, and will contain clauses specifying both the forum and the law to be applied therein. A choice of law clause in a contract is one whereby the parties to that contract specify which law (i. ... Choice of law is a concept within the field of the conflict of laws, relating to relationships between different nations, and in the United States between individual states. ...


  Results from FactBites:
 
Fireman's Fund Insurance Co. v. Cho Yang Shipping Co. (1687 words)
Defendants asserted as a defense that the forum selection clause was enforceable and operated to deprive the district court of subject matter jurisdiction.
The district court refused to enforce the forum selection clause and denied appellants' motion to dismiss for lack of jurisdiction.
A forum selection clause is "prima facie valid and should be enforced unless enforcement is shown by the resisting party to be `unreasonable' under the circumstances." The Bremen v.
  More results at FactBites »


 

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