How have courts interpreted a forum selection clause in an agreement between a franchiser and the franchiser-signator to the agreement?

California, United States of America


The following excerpt is from Bugna v. Fike, 95 Cal.Rptr.2d 161 (Cal. App. 2000):

Lu v. Dryclean-U.S.A. of California, Inc. (1992) 11 Cal.App.4th 1490 is helpful. There, the plaintiffs argued that enforcement of a forum selection clause would be unreasonable because two of the defendants-the corporate parent and grandparent of the franchiser-signator to the agreement-did not sign the agreement containing the forum selection clause. The reviewing court was not persuaded: "'"[A] range of transaction participants, parties and non-parties, should benefit from and be subject to forum selection clauses." [Citations.]' Here, the alleged conduct of [the corporate parent and grandparent] is closely related to the contractual relationship. They are alleged to have participated in the fraudulent representations which induced plaintiffs to enter into the Agreement. Indeed, plaintiffs go so far as to allege [the corporate parent and grandparent] are the 'alter ego' of Dryclean California, which did sign the Agreement containing the forum selection clause. Under these circumstances, the fact that [they] did not sign the Agreement does not render the forum selection clause unenforceable. [Citations.] To hold otherwise would be to permit a plaintiff to sidestep a valid forum selection clause simply by naming a closely related party who did not sign the clause as a defendant." (Id. at p. 1494, fn. omitted.)

Other Questions


How have courts interpreted section 1016.5 of the California Immigration Code and how have the courts interpreted the word 'court' in that section? (California, United States of America)
How have courts interpreted the words of the release clause in a release agreement? (California, United States of America)
How have courts interpreted immunity clauses in witness immunity agreements? (California, United States of America)
How have courts interpreted the extension clause in a lease agreement? (California, United States of America)
How have the courts interpreted an Agreement of Agreement of easement? (California, United States of America)
How have courts interpreted delegation clauses in an arbitration agreement? (California, United States of America)
How have courts interpreted plea agreements where a defendant's plea agreement states that he should receive a jail sentence based on his criminal conviction rather than that set forth in the criminal plea form? (California, United States of America)
How have courts interpreted immunity clauses in witness immunity agreements? (California, United States of America)
How have courts interpreted a waiver agreement where the waiver agreement was ambiguous or ambiguous? (California, United States of America)
How have courts interpreted the interpretation of a federal agency's interpretation of the California Civil Code? (California, United States of America)
X



Alexi white


"The most advanced legal research software ever built."

Trusted by top litigators from across North America.