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In contract law, a forum selection clause (sometimes called a dispute resolution clause, choice of court clause, governing law clause, jurisdiction clause or an arbitration clause, depending on its form) in a contract with a conflict of laws element allows the parties to agree that any disputes relating to that contract will be resolved in a specific forum.
The plaintiffs, Eulala and Russel Shute, were passengers on a cruise ship operated by the defendant, Carnival Cruise Lines, Inc.The Shutes had bought tickets in Washington and signed a contract, with a forum selection clause mandating that injured parties would sue in Florida, to the exclusion of all other jurisdictions.
In a unanimous opinion authored by Associate Justice Samuel Alito, the Supreme Court clarified that the proper procedure to enforce a forum selection clause is through a motion to transfer under 28 U.S.C. 1404(a). [6] When such a motion is made, the district court should grant it unless extraordinary circumstances counsel against doing so. [7]
When a case has connection to more than just a single state, the forum state's choice of law principles generally guide the selection of what place's law will apply. Parties to a contract may seek to prevent forum shopping by inserting a forum selection clause or a choice of law clause in their contract. Such clauses are now generally enforced ...
Another unique characteristic of contracts is that the parties can decide which law should apply for most purposes, and memorialize that decision into the contract itself (see forum selection clause and choice of law clause) – although not every jurisdiction will enforce such provisions.
All three clauses are the subject to controversy and wide legal debate, with supporters claiming the tools are strong risk management tools and the expense that class action litigation presents both in regard to time and money, though advocacy groups argue that these clauses reduce the rights of consumers and employees and prevent companies ...
In contract law, an arbitration clause is a clause in a contract that requires the parties to resolve their disputes through an arbitration process. Although such a clause may or may not specify that arbitration occur within a specific jurisdiction, it always binds the parties to a type of resolution outside the courts, and is therefore considered a kind of forum selection clause.
Cases which involved the validity of a forum selection clause in a contract. Pages in category "United States forum selection case law" The following 4 pages are in this category, out of 4 total.