Non-US Successors And US Forum Selection Clauses

Law360, New York (November 23, 2009, 12:40 PM EST) -- On Oct. 23, 2009, the Second Circuit definitively ruled in Aguas Lenders Recovery Group LLC v. Suez SA (ALRG) that U.S. forum selection clauses are enforceable against successors in interest under ordinary principles of contract law — even when the successor is a non-U.S. entity.

The opinion clarifies this key legal issue, further strengthening predictability in international transactions.

Applying ordinary successorship law to forum selection clauses prevents a defaulting successor from escaping liability on a jurisdictional theory when substance and jurisdiction were negotiated as one contractual...
To view the full article, register now.