Tuesday, February 24, 2015
Texas or England? The Contact's Choice of Forum Clause Can Bind Non-Parties to a Contract, Even When the Chosen Law Will Not Allow the Cause of Action
The U.S. Court of Appeals for the Fifth Circuit reminds us in a new decision that a choice of forum clause in a contract can bind entities that are not parties to that contract. You may have to sue in England instead of Texas after all, even if English law won't allow the cause of action you're trying to bring. Click here to read the majority and dissenting opinions in the new case of In re Lloyd's Register North America, No. 14-20554 (5th Cir. Feb. 18, 2015).