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Tuesday, May 19, 2009

Forum Selection Clause. A forum selection clause in the contract at issue in Yakin v. Tyler Hill Corp. provided for litigation in Nassau County. At the time the contract was executed, there was a federal court in Nassau County as well as a state court. By the time a dispute arose, however, the federal court has moved to Suffolk County. The plaintiff brought the case in Nassau Supreme Court, and the defendant removed it to the federal court. The plaintiff moved to remand based on the forum selection clause, and the District Court granted the motion. The defendant appealed.

The Second Circuit found that the forum selection court was not ambiguous, and that it set venue in Nassau County, not in a court whose jurisdiction covered Nassau County.

Careful how you draft those forum selection clauses.

The decision in this case can be found here.

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