{"id":894195,"date":"2018-05-16T11:25:54","date_gmt":"2018-05-16T17:25:54","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=894195"},"modified":"2018-05-16T11:25:54","modified_gmt":"2018-05-16T17:25:54","slug":"forum-selection-clause-mandatory-permissive-know-difference","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/forum-selection-clause-mandatory-permissive-know-difference\/","title":{"rendered":"Is Your Forum Selection Clause Mandatory or Permissive: How to Know the Difference and Why you Should"},"content":{"rendered":"

Cheryl D. Shoun | Nexsen Pruet<\/a> | May 8, 2018<\/p>\n

Drafting an agreement that includes a forum selection clause? Preparing to litigate an agreement that includes a forum selection clause and wondering how to argue?<\/strong><\/p>\n

The United States District Court, relying on a recent Fourth Circuit opinion offered some help to your analysis in\u00a0Allstate Crane Rental, Inc. v. Paramount Equipment, LLC<\/em>\u00a02018 WL 2048361 (May 2, 2018).<\/p>\n

Generally, a defendant seeking to enforce a forum selection clause should move to dismiss pursuant to the\u00a0forum non conveniens<\/em>\u00a0doctrine. In such an instance, the defendant\u2019s burden is substantial \u2013 the defendant must prove that an alternative forum is available, adequate and more convenient than the plaintiff\u2019s chosen forum. That burden shifts, however, with a mandatory forum selection clause; one that requires litigation to be held in a specific forum,\u00a0expressly to the exclusion of others<\/em>. A mandatory clause that includes the requisite exclusion language reverses the presumptions favoring a plaintiff\u2019s forum choice. When facing a mandatory forum selection agreement, the plaintiff has the significant burden of establishing why the agreement should not be enforced, made more challenging against the backdrop of a strong federal public policy in support of the enforcement of such clauses.<\/p>\n

A forum selection clause is permissive if it permits litigation to occur in a particular forum but does not foreclose the possibility of the litigation occurring elsewhere. Such a clause does not support dismissal on the basis that plaintiff filed in a forum other than the one designated in the clause. Rather, a defendant arguing against the plaintiff\u2019s choice of forum must undertake the substantial burden of showing the chosen forum is highly inconvenient and that there exists an equally acceptable forum, more convenient in light of public and private interests involved in the litigation.<\/p>\n

When drafting, interpreting or advocating for or against forum selection clauses, the threshold consideration should be whether the clause is mandatory or permissive. Be aware \u2013 in determining whether the clause is mandatory or permissive, the court is going to look carefully at the specific language. For example, if the clause includes language indicating the chosen forum is the \u201conly\u201d or the \u201cexclusive\u201d forum, or if it provides the chosen forum is the \u201csole\u201d forum, the court will conclude the provision is mandatory. If this critical analysis results in the determination the clause is mandatory, requiring litigation in a particular forum to the exclusion of others, there is assurance the court will presume the clause is enforceable, and the plaintiff must overcome a substantial burden. If, however, the clause is permissive, the court will apply the traditional\u00a0forum non conveniens<\/em>\u00a0test, requiring the defendant to labor under that burden.<\/p>\n","protected":false},"excerpt":{"rendered":"

Cheryl D. Shoun | Nexsen Pruet | May 8, 2018 Drafting an agreement that includes a forum selection clause? Preparing to litigate an agreement that includes a forum selection clause and wondering how to argue? The United States District Court, relying on a recent Fourth Circuit opinion offered some help to your analysis in\u00a0Allstate Crane… Continue reading Is Your Forum Selection Clause Mandatory or Permissive: How to Know the Difference and Why you Should<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[9],"tags":[9895,72,476],"class_list":["post-894195","post","type-post","status-publish","format-standard","hentry","category-construction-contracts","tag-advise-consult","tag-construction-contracts-2","tag-forum-selection-clause","entry"],"jetpack_publicize_connections":[],"yoast_head":"\nIs Your Forum Selection Clause Mandatory or Permissive: How to Know the Difference and Why you Should - 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