forum shopping clause

forum shopping clause

A clause in an agreement specifying the state and county where any disputes will be heard. All states have rules regarding jurisdiction, meaning the ability of particular courts of the state (circuit, district, probate, justice of the peace) to hear particular disputes and to issue orders that are binding on the parties. All states have rules regarding venue, meaning the county in which a dispute must be heard. Forum shopping clauses alter the normal rules.They are frequently included by financially strong parties who are afraid of the whims of local lawyers,judges, and juries and would prefer that disputes are handled in their own backyard. Such clauses will be upheld where reasonable under the circumstances.

The contractual agreement to a particular forum does not necessarily mean that forum's law will apply. Choice of law is another totally different concept. Many contracts with forum shopping clauses also have choice of law clauses stating that the law of a certain state will control any disputes.

Full browser ?