Enforcing a forum selection clause.

Practice point: As a general rule, only parties in privity of contract may enforce terms of the contract such as a forum selection clause found within the agreement.

Student note: There are three sets of circumstances under which a nonparty may invoke a forum selection clause: (1) a third-party beneficiary of the agreement may enforce a forum selection clause; (2) parties to a global transaction who are not signatories to a specific agreement within that transaction may nonetheless benefit from a forum selection clause; and (3) a nonparty that is closely related to one of the signatories can enforce a forum selection clause.

Case: May v. US HIFU, LLC, NY Slip Op 06194 (2d Dept. 2012).

Here is the decision.

Tomorrow’s issue: Agreements to waive claims.