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As many employers may know, some employment agreements include a forum-selection clause that specifically identifies the appropriate court to handle any disputes related to the employment agreement.
In this way, if there is litigation over the agreement, it will occur in a forum that is more convenient for the employer, or limit the chance that a lawsuit will be filed in a forum that would not be as favorable. At a minimum, requiring that all lawsuits related to the employment agreement be heard in the county or city where the employer has its principal place of business certainly gives the employer some “home-field advantage,” and reduces the overall costs of the litigation.
A recent decision from the Maryland District Court has upheld a venue-selection provision that required all lawsuits related to the employment agreement at issue to be filed in Howard County, MD. A closer look at this interesting case will provide employers with a useful lesson.
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