Where to File a Lawsuit: Forum Selection Clauses
In most cases, it is easy to figure out which court is the proper one in which to file a lawsuit. Parties to a lawsuit usually reside in reasonably close proximity to one another, and statistically, the events giving rise to the lawsuit also happen in close geographic proximity to each other and the parties. But sometimes a contract which is the subject of the lawsuit contains a clause mandating that any suit be filed in a particular jurisdiction. This is known as a “forum selection clause.” Litigants, especially consumers, may wonder whether they are bound by that clause or if there is a way to get out of it. A party in Washington may find it unduly burdensome to file a lawsuit against a big company when that means going to Florida or New York or some other far off place. Such a prospect may involve having to hire a lawyer admitted in another state, or having the party or other key witnesses travel a great distance to have their day in court.
In Washington State, the lines between enforceable and unenforceable forum selection clauses are not always clear, and may depend upon some subjective determinations by the court. The starting point is a strong presumption that the clause is enforceable against the parties who signed the contract. A party seeking to invalidate the forum selection clause bears a “heavy burden” to establish that enforcement would be unreasonable. Washington courts have found that the clause can be unreasonable if it was induced by fraud or overreaching, or if it is so unfair and inconvenient as, for all practical purposes, would deprive the plaintiff of a remedy or of its day in court, or if enforcement would contravene a strong public policy of the State where the action is filed. Where a forum selection clause is found in a contract between two business entities, who are presumed to have reasonably equivalent bargaining power, it is usually much more difficult to defeat a forum selection clause. But in the case of a consumer or employee, Washington courts have been more likely to find a forum selection clause unreasonable. Washington consumers who seek to enforce Washington’s Unfair Business Practices Act, also commonly known as the Consumer Protection Act, stand a decent chance of invalidating a forum selection clause, as courts have found that statute to represent a strong public policy in Washington to protect consumers from unscrupulous business practices. Also, courts have found forum selection clauses to apply only to the parties to the contract containing the clause. For example, a spouse seeking to sue a company for wrongful death or loss of consortium will not be bound by the forum selection clause assented to by the deceased or injured spouse. Whether a forum selection clause is enforceable is often litigated early in a lawsuit so that the parties do not waste their time and the court’s time in the wrong forum.
Keep in mind- forum selection clauses are not the only possible reason you might have to sue in a different jurisdiction. There may be other reasons, including if a defendant resides outside of Washington under certain circumstances.
The lawyers at Beresford Booth have a wealth of experience with civil litigation. We would be happy to assist you with your litigation needs.
To learn more about Where to File a Lawsuit: Forum Selection Clauses, please contact Beresford Booth at info@beresfordlaw.com or by phone at (425) 776-4100.