The Enforceability of Forum Selection Clauses Against California Residents

Jul 24, 2020

There is a potentially important development pending with the Supreme Court of California concerning whether a New York forum selection clause in a contract governed by New York law is enforceable against a California resident when that contract also contains a pre-dispute jury trial waiver, which is prohibited under California law. In Handoush v. Lease Finance Group, LLC, the California Court of Appeal for the First Appellate District, reversing the trial court, held that such a clause is not enforceable because it may diminish a California resident’s substantive rights under California Law. Lease Finance Group, LLC appealed, and the Supreme Court of California granted its petition for review.

by David Kleer