Forum Selection Clause Enforceable Even When Party Unrepresented in Negotiations

On November 7, 2011, the United States Court of Appeals for the Fifth Circuit issued an instructive decision regarding the enforcement of forum selection clauses. Of particular note, the Fifth Circuit upheld the enforceability of a clause limiting the parties' dispute exclusively to state court, even though a federal court would otherwise have been able to exercise diversity jurisdiction over the instant dispute. In so doing, the Fifth Circuit rejected the claims of one of the parties that the inclusion of the forum selection clause was a product of fraud or overreaching because the drafting attorney violated the rules of professional conduct.

In Lighthouse MGA, LLC v. First Premium Insurance Group, Inc., Case Nos. 1-30293 and 11-30500 (5th Cir. Nov. 7, 2011), the parties entered into a marketing services agreement. The contract, including the forum selection clause in question, was drafted by the general counsel for First Premium. Lighthouse, the other party to the