Muzumdar v. Wellness International Network , 438 F.3d 759 (2006)

When is a forum selection clause valid?


The Seventh Circuit ruled that a forum selection clause is valid if it is clear and unambiguously the choice of forum of the parties to the agreement. The plaintiffs sued Wellness International in Illinois District Court claiming that the company was an illegal pyramid scheme, and further alleged fraud and RICO violations. The plaintiff claimed that the forum selection clause, naming Dallas Texas as the forum, was not the exclusive forum of a claim under the distributor agreement. In addition to the distributor agreement, the plaintiff signed an additional agreement, the "WIN Rules and Regulations," that incorporated all of the terms of the distributor agreement and stated that jurisdiction was "non-exclusive" in Dallas County. The Court held that the "non-exclusive" phrase was not controlling because it did not refer to venue, a different concept from jurisdiction. The Rules and Regulations were not in conflict with the Distributor Agreement, and the venue clause was valid and enforceable.

Full case and case summary also available online at:

LOADING PDF: If there are any problems, click here to download the file.

Reference Info:Federal, 7th Circuit, Illinois | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Written by:


Babener & Associates on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.