Forum Selection Clauses

If a dispute arises from a contract, you can find your local attorney and file a complaint in a court in your area, right? Well, if your contract included a forum selection clause, probably not! Forum selection clauses can be very handy agreements for companies. They allow them to limit potential court expenses arising out of their contracts. They can also help avoid the cost of traveling all across the country to handle legal disputes. For a consumer, however, they can severely restrict your options in resolving contract disputes.

Forum selection clauses can require consumers to file suit in a state hundreds or even thousands of miles from home, even if they have never been to that state. You may need to hire local counsel in that state or compensate witnesses if they must travel to testify to support your claim. A forum selection clause might effectively bar any remedy for an injury unless the damages are sufficient to counter the greatly increased cost of going to court in a different state.