U.S. Supreme Court Reaffirms that Forum-Selection Clauses Are Presumptively Enforceable

In Brief

  • What procedure should a defendant use to enforce a forum-selection clause when the defendant is sued in a court that is not the contractually selected forum?
  • The U.S. Supreme Court’s decision in Atlantic Marine Construction Co. v. U.S. District Court for the Western District of Texas answers this question.
  • The court held that the defendant should seek to transfer the case to the court specified in the forum-selection clause by invoking the federal statute that permits transfers of venue.
  • If the contract’s forum-selection clause instead specifies a state court as the forum for litigating disputes, the defendant may invoke a different federal statute that requires dismissal or transfer of the case.

Forum-selection clauses are common and highly useful features of commercial contracts because they help make any future litigation on a contract more predictable for the parties and, in some cases, le…

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