News & Analysis as of

Forum Selection

A&O Shearman

California Appellate Court Affirms Dismissal Of Putative Class Action Against Electric Vehicle Company Based On Federal Forum...

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On April 23, 2025, the Fourth Appellate District Court of Appeal of the State of California affirmed the dismissal of a putative class action asserting claims under the Securities Act of 1933 against an electric vehicle...more

Allen Matkins

Is Bullock v. Rivian the Nail in the Coffin for California State 1933 Act Claims?

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Last month in Bullock v. Rivian Automotive, California’s Fourth District Court of Appeal became the latest to enforce a federal forum provision (FFP) embedded in a Delaware corporation’s charter and affirmed dismissal of a...more

Foley & Lardner LLP

Actions Speak Louder Than Words: A Franchise Relationship Can Exist in Spite of a Contract’s Express Terms to the Contrary

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In OTG New York, Inc. v. Ottogi America, Inc., OTG was the exclusive regional distributor for food company Ottogi from 2008–23, during which Ottogi shipped inventory to OTG’s New Jersey warehouse. In 2024, Ottogi terminated...more

Allen Matkins

Is Delaware Forum Selection Bylaw Binding On Shareholder Who Filed Suit When The Corporation Was Incorporated In California?

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In Drulias v. 1st Century Bancshares, Inc. 30 Cal. App. 5th 696 (2018), the plaintiff was a shareholder in a Delaware corporation whose board of directors approved a merger agreement and at the same time adopted a forum...more

Lathrop GPM

Citing California Franchise Relations Act, California Federal Court Rejects Franchisor’s Attempt to Dismiss Case

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A federal court in California recently denied a franchisor’s motion to dismiss litigation, holding that a franchise agreement provision requiring the parties to mediate in Texas prior to instituting litigation or arbitration...more

Frantz Ward LLP

Cannabis Litigation: Using Contractual Provisions to Avoid an Illegality Defense

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Concerns remain over the enforceability of cannabis contracts as recent cases highlight the conflict between state-sanctioned operations and federal illegality. In both state and federal courts, judges have anchored to the...more

Lathrop GPM

Southern District of New York Transfers Anticipatory Declaratory Judgment Action to the Middle District of North Carolina

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Marie Sharp’s Fine Foods, Ltd., a Belize condiment and jam manufacturer, and Eve Sales Corp., a New York-based purchaser of Marie Sharp’s branded products, filed an anticipatory declaratory judgment and breach of contract...more

Foley & Lardner LLP

Permissive Forum Selection Clause Is Not Enforceable in Franchisor’s Suit Against Franchisee

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A key term of any franchise agreement is the venue selection clause as this page has previously explained. This issue was at the forefront of Convenience Stores Leasing & Management, LLC’s (“CSLM”) August 2024 suit...more

McGlinchey Stafford

Court Refuses to Enjoin Mass Arbitration on Personal Jurisdiction Grounds

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Companies facing the threat of mass arbitration continue to seek judicial intervention to thwart such tactics. However, most of those attempts have failed. Recently, the District Court in the District of Colombia rejected a...more

Morris James LLP

Delaware Supreme Court Affirms Chancery Decision in Section 225 Control Dispute

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Ravindran v. Glas Trust Co. LLC, No. 463, 2023 (Del. Sept. 23, 2024) - In affirming the Court of Chancery’s determination in a Section 225 action that Timothy Pohl (“Pohl”) was the sole director and officer of a Delaware...more

Lathrop GPM

Wisconsin Federal Court Transfers Venue to Indiana Notwithstanding Forum Selection Clause

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A federal court in Wisconsin recently transferred a franchisor’s breach of contract lawsuit to Indiana, the location of the franchisee, even though the parties’ supply agreement contained a Wisconsin forum selection clause....more

Lathrop GPM

California Federal Court Grants Remediation Franchisor’s Motion to Stay Proceedings

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A federal court in California recently granted Ringside Development Company’s motion to stay a franchisee-initiated lawsuit pending resolution through alternative dispute resolution. Jameson v. Ringside Development Company,...more

Husch Blackwell LLP

Fifth Circuit: Reference to Defunct Entity Did Not Abrogate Intent to Arbitrate

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The Fifth Circuit Court of Appeals recently reversed a district court’s denial of a motion to compel arbitration, finding that the parties’ arbitration clause expressed a clear intent to arbitrate and that the reference in...more

Lewitt Hackman

Franchisor 101: The Forwarded Franchisee

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A district court in Arizona granted a franchisor’s motion to transfer venue to Missouri pursuant to the terms of the franchise agreement. S&G Elite LLC (“S&G”) and ST National Franchising, LLC (“Franchisor”) entered into a...more

Faegre Drinker Biddle & Reath LLP

The Fifth Circuit Held That Parties to an Arbitration Agreement Must Arbitrate Their Claims Even If the Forum They Selected No...

The U.S. Court of Appeals for the Fifth Circuit recently compelled two parties to arbitrate their claims despite the abolishment of the forum that they selected in their international commercial arbitration clause. The case...more

Snell & Wilmer

Texas Legislature Convenes New Regular Session

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The Texas Legislature follows a unique legislative calendar and convenes in regular session for 140 days only once every other year. This unusual schedule creates a flurry of new state laws every other year in Texas. These...more

Lewitt Hackman

Franchisee 101: Detailing Within a State Addendum

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A California federal court partially granted a motion to compel arbitration by car care franchisor Spiffy Franchising. However, the court invalidated provisions in the franchise agreement providing for dispute resolution in...more

Fox Rothschild LLP

Should the Litigation be in State or Federal Court?

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Deciding whether to choose state or federal court can be outcome determinative. This is particularly important in deciding to remove a case from state to federal court. Some state franchise statutes clearly allow a court to...more

Kerr Russell

“Materially Altered”: Michigan Court of Appeals Rules That Forum Selection Clause Added to Invoice Can’t be Enforced

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You’re spending your day off on Luna Pier beach in Monroe County, Michigan. You’ll swim in the morning, get lunch at Gander’s Family Restaurant, and rent jet skis in the afternoon. That morning, however, you wake up and...more

Womble Bond Dickinson

Litigation or Arbitration: Which is Better for Adjudicating Contract Disputes?

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Ask anyone with experience on construction projects, particularly large, complex “mega-projects,” and they will tell you that disputes are an expected part of doing business. It is rare that these projects come in on schedule...more

Lathrop GPM

California Federal Court Grants Franchisor’s Motion to Compel Arbitration but Finds Forum Selection and Choice of Law Clauses...

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A federal court in California recently granted franchisor Spiffy Franchising, LLC’s motion to compel arbitration of a franchisee’s claims, but found the North Carolina forum selection and choice of law provisions in the...more

Womble Bond Dickinson

Factors Courts Commonly Consider When Deciding Motions to Transfer in ANDA Litigation

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Where the Operative Facts Occurred - In assessing this primary factor, courts have looked to the location of defendant’s principal place of business, where the ANDA application was prepared, and where the ANDA product was...more

Lathrop GPM

Minnesota Federal Court Grants Furniture Store’s Motion to Compel Arbitration but Stays Rather than Dismisses Sales...

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A federal court in Minnesota recently granted in part Ashley Furniture Industries’ motion to compel arbitration of a Minnesota-based sales representative’s claims. ABWB, Inc. v. Ashley Furniture Indus., LLC,2024 WL 4296900...more

Hinshaw & Culbertson - Insights for Insurers

[Commentary] An Updated Primer on PFAS/Forever Chemical Claims: Regulation, Litigation, Large Losses, and Insurance Coverage...

Per- and poly-fluoroalkyl substances ("PFAS") represent major exposures to insurers and their policyholders. Thousands of lawsuits are pending nationwide, and numerous large settlements have already been reached. Insurers are...more

King & Spalding

Delaware Supreme Court Affirms Lender’s Exercise of Right to Replace Officers

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On September 23, 2024, the Delaware Supreme Court affirmed a lower court’s ruling that Byju’s Alpha, Inc. was in default under the terms of a credit agreement for a $1.2 billion loan and that the lenders had authority under...more

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