Civil Litigation,
Corporate,
California Courts of Appeal
Jun. 20, 2018
Forum selection, personal jurisdiction and shareholder derivative suits
What if a forum selection clause requires that the target forum have personal jurisdiction over the defendants?
Mohammed Elayan
Corporate Associate
Rutan & Tucker LLP
Email: melayan@rutan.com
Mohamme works with individuals and companies on a variety of transactions, across multiple industries, including software, healthcare, manufacturing, technology, and retail. He advises on mergers & acquisitions, financings, commercial and licensing agreements, corporate governance, and entity structuring.
When parties draft an agreement, they often include a forum selection clause. Such clauses are generally enforceable, especially when negotiated in an arms'-length transaction between sophisticated parties. But what if such a provision requires that the target forum have personal jurisdiction over the defendants? Unless the forum selection clause is specific as to timing, personal jurisdiction can be established within a reasonable amount of time after the filing of a...
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