A forum selection clause (FSC) in a corporate charter or by-law provides a valid and promising response to the problems posed to companies by multi-jurisdictional disputes involving claims based upon internal corporate affairs. In the absence of a provision providing for stockholder consent to jurisdiction and service, thereby permitting courts within the selected forum to enforce an FSC, forum selection clauses must be enforced in foreign courts, where suits subject to them are – improperly – filed. Three recent cases indicate that foreign courts will be receptive to FSCs.
