Restatement (Second) of Conflict of Laws s 80 (1969 Main Vol.)

Restatement of the Law Second

Conflict of Laws 2d

Chapter 4. Limitations on the Exercise of Judicial Jurisdiction

Topic 1. Limitations Imposed by Contract

Copyright (c) 1971 The American Law Institute

s 80. LIMITATIONS IMPOSED BY CONTRACT OF PARTIES

The parties' agreement as to the place of the action cannot oust a state of judicial jurisdiction, but such an agreement will be given effect unless it is unfair or unreasonable.

Comment:

a. Rationale. Private individuals have no power to alter the rules of judicial jurisdiction. They may not by their contract oust a state of any jurisdiction it would otherwise possess. This does not mean that no weight should be accorded a provision in a contract that any action thereon shall be brought only in a particular state. Such a provision represents an attempt by the parties to insure that the action will be brought in a forum that is convenient for them. A court will naturally be reluctant to entertain an action if it considers itself to be an inappropriate forum. And the fact that the action is brought in a state other than that designated in the contract affords ground for holding that the forum is an inappropriate one and that the court in its discretion should refuse to entertain this action. Such a provision, however, will be disregarded if it is the result of overreaching or of the unfair use of unequal bargaining power or if the forum chosen by the parties would be a seriously inconvenient one for the trial of the particular action. On the other hand, the provision will be given effect, and the action dismissed, if to do so would be fair and reasonable.