Norben Group Inc. v. St. George Distribution Corp.

Credit Agreement Forum-Selection Clause Only Applies to Disputes Arising Under or Relating to It

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http://nycourts.law.com/CourtDocumentViewer.asp?view=Document&docID=46104 Judge Conner NEW JERSEY corporation brought a breach of contract action against a California corporation. Plaintiff contended that defendant sent it a rate sheet via fax and later sent it a document entitled “Credit Agreement” via fax. Defendant contended, however, that the credit agreement and rate sheet were forwarded together, arguing that the action must be dismissed because the credit agreement contained a forum-selection clause that mandates California as the proper venue. Plaintiff argued that the credit agreement containing the forum-selection clause was not part of the parties’ contract. The court denied defendant’s motion, ruling that, even if defendant is correct and the credit agreement is a valid binding contract, it would not warrant dismissal because the forum-selection clause only applies to disputes that arise under or relate to the credit agreement. The court added that the parties did not intend to treat the credit agreement and the invoices containing the standard terms as a whole.

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