ARTICLE · 12 DECEMBER 2005

New Jersey Court Refuses to Apply Case Invalidating Forum Selection Clauses to Arbitration

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Will your forum selection clause in your arbitration clause be enforced in the face of a state franchise policy against enforcing forum selection clauses? It should, at least according to a recent decision from the United States District Court for the District of New Jersey.

United StatesLitigation, Mediation & Arbitration

Originally published December 5, 2005

By Barry Heller and J. Dwyer

Will your forum selection clause in your arbitration clause be enforced in the face of a state franchise policy against enforcing forum selection clauses? It should, at least according to a recent decision from the United States District Court for the District of New Jersey.

The court there determined that Kubis & Perszyk Assocs. v. Sun Microsystems, 680 A.2d 618 (N.J. 1996), the New Jersey Supreme Court decision holding that forum selection clauses in franchise agreements are presumptively invalid, does not apply to arbitral forum selection clauses in franchise agreements.

Franchisor Contends Magistrate’s Ruling Was In Error

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