Wednesday, December 17, 2008

Venue Selection, State or Federal?

When a contract contains a forum-selection clause that requires "exclusive venue" in a particular county of a State, might venue be proper in a Federal District Court that happens to be located in that county?  The Fifth Circuit answered "yes" this week in Alliance Health Group, Inc. v. Bridging Health Options LLC.  En route, the court disagreed with a 10th Circuit case and distinguished provisions that require venue in the courts of a county from provisions that require venue in the courts in a county.  Federal district courts are courts in a county, but they are not courts of a county.  Although controversial, Judge Barksdale's opinion is concise, well-written, and accessible.  --RR

http://lawprofessors.typepad.com/civpro/2008/12/venue-selection.html

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