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Court Watch

By Charles G. Miller, Darryl A. Hart
November 30, 2014

California Court Refuses to Enforce Forum Selection Clause Post- Atlantic Marine

A recent California case is a good indication of how important a role a forum selection clause will play after the U.S. Supreme Court's recent decision in Atlantic Marine Const. Co. Inc. v. U.S. Dist. Court for W. Dist. Of Texas, 134 S.Ct. 568 (2013). Atlantic Marine made clear that while a motion to dismiss or transfer venue based on a forum selection clause could not be made on the grounds of improper venue under 28 U.S.C. '1406, the forum selection clause should be given controlling weight in all but the most exceptional cases under a forum non-conveniens analysis under 28 U.S.C. '1404. However, this assumes a valid forum selection clause.

In Frango Grille USA Inc. v. Pepe's Franchising Ltd., WK Bus. Fran. Guide '15390 (C.D. CA. July 21, 2014), a master franchisee, before it began to operate, filed suit against the franchisor in California. The Master Franchise Agreement had a London, England, forum selection clause, since the franchisor was headquartered there, as well as an English choice-of-law clause. The franchisor moved to dismiss or to transfer for forum non conveniens under 28 U.S.C. '1404(a).

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