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Buxbaum: The Interpretation and Effect of Permissive Forum Selection Clauses Under U.S. Law

Professor Hannah Buxbaum has recently published an important report (see here), prepared for the International Academy of Comparative Law’s International Congress, on forum selection clauses.  Below is the abstract.

Abstract

A forum selection clause is a form of contractual waiver. By this device, a contract party waives its rights to raise jurisdictional or venue objections if a lawsuit is initiated against it in the chosen court. The use of such a clause in a particular case may therefore raise a set of questions under contract law. Is the waiver valid? Was it procured by fraud, duress, or other unconscionable means? What is its scope? And so on. Unlike most contractual waivers, though, a forum selection clause affects not only the private rights and obligations of the parties, but something of more public concern: the jurisdiction of a court to resolve a dispute. The enforcement of such a clause therefore raises an additional set of questions under procedural law. For instance, if the parties designate a court in a forum that is otherwise unconnected to the dispute, must (or should) that court hear a case initiated there? If one of the parties initiates litigation in a non-designated forum that is connected to the dispute, must (or should) that court decline to hear the case?

This report, prepared for the International Academy of Comparative Law in connection with its XXth International Congress, analyzes the approach to these questions in the United States. The bottom line is straightforward: almost always, in consumer as well as commercial contracts, forum selection clauses will be enforced. Navigating the array of substantive, procedural, and conflicts rules whose interplay yields that result, though, is far less straightforward. That is the task of this report. Following a short background, it surveys current state law on their use, in consumer as well as commercial contracts. The report then discusses the interpretation and enforcement of forum selection clauses in both state and federal courts. It analyzes their effect on jurisdiction as well as on doctrines involving venue, such as removal and forum non conveniens. The report also covers choice of law problems, particularly as they arise in the course of litigation in federal courts.

Le droit international privé dans le labyrinthe des plateformes digitales

To celebrate its 30th Private International Law Day, the SICL is holding a conference devoted to the new challenges of what is sometimes described as the “collaborative” or “sharing” economy. It will take place in Lausanne on 28th June 2018.

The concept of economy includes crowdfunding, “Uberisation” and all other intermediary activities using a digital platform. These mass phenomena, witnessed on a global scale, put in question the very notion of the territorial division of state borders. Is the digital space in which these platforms operate a true space, capable of being delineated and regulated at the national level, and which falls into the territorial scope of application of a law? Or is it rather a volatile cloud, globalised, delocalised, incapable of being pinned down on such a territorial basis? Is it still possible for nation states to guarantee their citizens and/or residents legal protection with regard to the intermediaries who employ them or who offer them their services? Or has it not become essential, even urgent, that a supranational law be devised and placed in the same cloudy skies in which the platform operates? Further still: is it possible to require platforms and their operators to be measured against the particular requirements of a state, notably those concerning the protection of workers and consumers? What role can contemporary private international law play in this regard?

All these questions present a challenge to the supposed neutrality sought by private international law and bring to the fore its potential political and protective role. In this respect, the state can use private international law in order to guarantee cross border protection to the weakest actors in the marketplace – notably, workers and consumers – who reside within its territory (and/or its citizens). On the other hand, however, it may be argued that state interference aimed at constraining those who operate in the digital economy may lead to harmful distortions of the global market. In this regard, what guarantees should be afforded to the freedom of the internet and, at the same time, to that of workers, whose decisions to join and work with a digital platform are made of their own free will? These considerations therefore demand that we draw on the traditional principles of party autonomy and decisional harmony. Speakers include Janine Berg, ILO Genève, Andrea Bonomi, Université de Lausanne, Miriam Cherry, University of St. Louis, Valerio De Stefano, KU Leuven, Marie-Cécile Escande Varniol, Université Lumière, Lyon II, Pietro Franzina, Università degli Studi di Ferrara, Ljupcho Grozdanovski, Université de Genève, Florence Guillaume, Université de Neuchâtel, Tobias Lutzi, University of Oxford, Anne Meier, MSS Law, Edmondo Mostacci, Università Bocconi, Etienne Pataut, Université Paris 1, Panthéon-Sorbonne, Ilaria Pretelli, Institut suisse de droit comparé, Teresa Rodríguez de las Heras Ballell, Universidad Carlos III de Madrid, Gian Paolo Romano, Université de Genève, et Gerald Spindler, Georg-August-Universität.

Click here for whole program and further information.

Recast of the Evidence and Service Regulations

The European Commission has published yesterday two communications, proposing the amendment of the Evidence and Service Regulations (1201/2000 & 1393/2007 respectively). The texts can be retrieved here  and here.

The key amendments suggested by both proposals have been summarized by Prof. Emmanuel Guinchard here and here.