Contracts frequently contain forum selection clauses that determine the venue for litigating disputes arising in connection with that contract. The inclusion of a forum selection clause can make future litigation more predictable by enabling the parties to hire appropriate counsel and understand the selected jurisdiction’s applicable rules. While such clauses are generally enforceable in New York, very narrow grounds exist for their non-enforcement.
One basis on which New York courts have refused to enforce a forum selection clause is where it conflicts with the internal affairs doctrine. The internal affairs doctrine directs that issues concerning the internal affairs of a corporate entity should be determined by the law of its place of incorporation and by the courts of that forum, regardless of any conflicting choice of law clause or venue selection clause in the contract at issue.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]
