Law.com Subscribers SAVE 30%

Call 855-808-4530 or email [email protected] to receive your discount on a new subscription.

Recent Developments in Enforcement of Forum Selection Clauses

By Patrick M. Northen
October 24, 2012

Forum selection clauses are an important contractual tool for equipment lease finance companies. Such provisions allow a lessor, among other things, to institute all collection actions in a single jurisdiction. The result is reduced legal fees and costs, better predictability of results, and a lower risk of “home town” verdicts based upon factors other than a neutral application of the law. In short, judicial enforcement of forum selection clauses lowers the cost of leasing.

In the recent case of Financial Planning Alternatives, Inc. v. De Lage Landen Financial Services, Inc., 2012 WL 2588553 (Mass. App. June 28, 2012), the court affirmed a trial court's dismissal of a lessee's tort and consumer protection claims on the grounds that the lawsuit was brought in the wrong jurisdiction. The court observed that Massachusetts courts generally enforce forum selection clauses, even when included in so-called “contracts of adhesion.” Accordingly, plaintiff was bound by the contract's selection of a Pennsylvania forum.

Read These Next
New York's Latest Cybersecurity Commitment Image

On Aug. 9, 2023, Gov. Kathy Hochul introduced New York's inaugural comprehensive cybersecurity strategy. In sum, the plan aims to update government networks, bolster county-level digital defenses, and regulate critical infrastructure.

The Bankruptcy Hotline Image

Recent cases of importance to your practice.

The DOJ's Corporate Enforcement Policy: One Year Later Image

The DOJ's Criminal Division issued three declinations since the issuance of the revised CEP a year ago. Review of these cases gives insight into DOJ's implementation of the new policy in practice.

How AI Has Affected PR Image

When we consider how the use of AI affects legal PR and communications, we have to look at it as an industrywide global phenomenon. A recent online conference provided an overview of the latest AI trends in public relations, and specifically, the impact of AI on communications. Here are some of the key points and takeaways from several of the speakers, who provided current best practices, tips, concerns and case studies.

Use of Deferred Prosecution Agreements In White Collar Investigations Image

This article discusses the practical and policy reasons for the use of DPAs and NPAs in white-collar criminal investigations, and considers the NDAA's new reporting provision and its relationship with other efforts to enhance transparency in DOJ decision-making.