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In the Marketplace

By ALM Staff | Law Journal Newsletters |
November 02, 2005

Ohio appellate court upholds the enforceability of the floating forum selection clause in NorVergence litigation: The Ohio Ninth District Court of Appeals has held that the floating forum selection in a NorVergence case where all of the lessees are for-profit corporations is enforceable. Preferred Capital, Inc. v. Power Engineering Group, Inc., 2005-Ohio-5113 (Sept. 28).

The court rejected all of the lessees' arguments with respect to the validity of the contract's forum selection clause, noting that one of the objectives of the UCC is to encourage, as a matter of sound economic policy, the free transferability of commercial paper to stimulate financial interdependence. The court remanded this state court matter and the other related consolidated cases to the trial court.

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