How a Recent US Supreme Court Ruling Will Affect Forum Selection Clauses in Commercial Contracts | Practical Law
Parties who rely on forum selection clauses to control litigation in contracts that span multiple jurisdictional venues should be aware of a recent ruling from the US Supreme Court that strongly favors enforcing valid forum selection clauses. The ruling requires defendants to enforce forum selection clauses through motions to transfer under 28 U.S.C. § 1404(a) and overturns a majority rule that allowed defendants to enforce the clauses through motions to dismiss under Federal Rule of Civil Procedure 12(b)(3) and 28 U.S.C. § 1406(a). However, the holding also places a heavy burden on plaintiffs who breach valid forum selection clauses by suing in forums other than those designated by their agreements.