Forum selection clause
A forum selection clause is a clause in a contract in which the parties agree that any litigation resulting from that contract will be brought in a specific forum. The forum might refer to a particular court in a jurisdiction agreed upon by the parties; or it might refer to a specific kind of dispute resolution process, such as mediation, arbitration, or a mini-trial; or it might refer to both, requiring a specific process to be carried out in a specific location.
Forum selection clauses have been criticized by some courts for improperly divesting them of personal jurisdiction over the parties. Because of this, some jurisdictions refuse to recognize these clauses, declaring them to be void as against public policy. However, most jurisdictions now recognize and enforce forum selection clauses, so long as the there was no fraud or oppression involved in the signing of the contract.
The United States Supreme Court has upheld forum selection clauses on several occasions, and has suggested that they should generally be enforced. See The Bremen v. Zapata Offshore Co., 407 U.S. 1 (1972); Carnival Cruise Lines, Inc. v. Shute, 499 U.S. 585 (1991).
It is important to note that a forum selection clause is different from a choice of law clause. A court that is selected as the forum for the resolution of a dispute may nevertheless apply the law of the place where the dispute arose, under general choice of law principles. However, a well-drafted contract will probably address both concerns, and will contain clauses specifying both the forum and the law to be applied therein.