Thursday, October 20, 2011
Enforceability of contractual forum selection in Texas
Contractual choice of forum for litigation
FORUM SELECTION CLAUSES GENERALLY ENFORCEABLE
Forum-selection clauses are generally enforceable and presumptively valid. In re Laibe Corp., 307 S.W.3d 314, 316 (Tex. 2010) (per curiam). A trial court abuses its discretion in refusing to enforce the clause unless the party opposing enforcement clearly shows (1) enforcement would be unreasonable or unjust, (2) the clause is invalid for reasons of fraud or overreaching, (3) enforcement would contravene a strong public policy of the forum where the suit was brought, or (4) the selected forum would be seriously inconvenient for trial. Id. The burden of proof is heavy for the party challenging enforcement. Id.
SOURCE: HOUSTON COURT OF APPEALS - 14-10-01077-CV - 10/20/11
RELATED LEGAL TERMS: venue, mandatory and permissive venue, motion to transfer venue