COURT REJECTS OUT OF STATE FORUM SELECTION CLAUSE

In the case of Verdugo v. Alliantgroup, L.P., decided on May 28, 2015, the Court in the Fourth Appellate District addressed the validity of a forum selection clause selecting a county in Texas as the exclusive forum for resolution of disputes regarding an employment contract. Specifically, the Court addressed whether such a clause was valid for disputes regarding California wage claims.

The Court ruled that California’s public policy precluded enforcement of such a clause for claims arising under the California Labor Code. However, the Court did not address application of its ruling to other California statutes, leaving such questions for future litigation and decisions in the Fourth Appellate District and in other courts.

For more information about the application of this case and its impact, please contact us at 562-901-2500 or e-mail us at info@KriegerLaw.com.

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