US Supreme Court Reaffirms that Forum-Selection Clauses Are Presumptively Enforceable
9 December 2013
Mayer Brown Legal Update
On December 3, 2013, the US Supreme Court issued a ruling in Atlantic Marine Construction Co. v. United States District Court for the Western District of Texas that held that the parties’ contractual choice of forum should be enforced except in the most unusual cases, and that the party resisting the forum-selection clause (i.e., the plaintiff who filed in a different court) has the burden of establishing that public interests disfavoring transfer outweigh the parties’ choice. The decision is significant for the banking and finance community because it provides greater certainty regarding the enforceability of forum-selection clauses, giving banks and other lenders that employ such clauses in their contracts greater predictability about where they will face future litigation.