Public Policy Considerations Concerning Forum Selection Clauses in Insurance Contracts
34 Pages Posted: 7 Aug 2016 Last revised: 19 Mar 2018
Date Written: August 6, 2016
Abstract
Forum selection clauses are present in many commercial contracts today. Since the 1972 decision of the United States Supreme Court in M/S Bremen v. Zapata, numerous courts throughout the country have decided on the issue of enforceability of forum selection clauses and the general question of enforceability has inspired a rich scholarly literature. Despite this rich literature, there is a gap in the recent law review literature concerning the enforceability of forum selection clauses in insurance contracts generally.
This Article intends to bridge that gap in the literature with a comprehensive examination of the enforceability of forum selection clauses in insurance contracts. It proposes a new balancing test for courts to utilize in determining whether to enforce a forum selection clause in an insurance contract. Just as courts utilize insurance principles in examining other provisions in insurance contracts, the proposed balancing test incorporates principles of insurance law in analyzing forum selection clauses.
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