Justices To Take Up Forum-shopping Case
From the National Law Journal
The U.S. Supreme Court on Monday agreed to resolve whether federal courts must enforce agreements between businesses on where to battle out their disputes.
In Atlantic Marine Construction Company v. J-Crew Management, the justices next term will review two different and conflicting approaches taken by the federal circuit courts in their enforcement of forum-selection clauses in business contracts.
The U.S. Chamber of Commerce and the Texas Civil Justice League filed amicus briefs urging the court to take the case and to reverse a ruling by the U.S. Court of Appeals for the Fifth Circuit.
"By declining to enforce a forum-selection clause in an agreement that was negotiated in an arms-length transaction between experienced business entities, the decision below frustrates the legitimate contractual expectations of thousands of businesses with similar contract provisions," wrote Carter Phillips of Sidley Austin for the chamber.
The chamber's amicus brief added that the lower court's ruling would discourage businesses from expanding geographically for fear of losing control of their litigation costs and would "invite uncabined forum-shopping."
Read more in our daily News Update...
From the National Law Journal
The U.S. Supreme Court on Monday agreed to resolve whether federal courts must enforce agreements between businesses on where to battle out their disputes.
In Atlantic Marine Construction Company v. J-Crew Management, the justices next term will review two different and conflicting approaches taken by the federal circuit courts in their enforcement of forum-selection clauses in business contracts.
The U.S. Chamber of Commerce and the Texas Civil Justice League filed amicus briefs urging the court to take the case and to reverse a ruling by the U.S. Court of Appeals for the Fifth Circuit.
"By declining to enforce a forum-selection clause in an agreement that was negotiated in an arms-length transaction between experienced business entities, the decision below frustrates the legitimate contractual expectations of thousands of businesses with similar contract provisions," wrote Carter Phillips of Sidley Austin for the chamber.
The chamber's amicus brief added that the lower court's ruling would discourage businesses from expanding geographically for fear of losing control of their litigation costs and would "invite uncabined forum-shopping."
Read more in our daily News Update...