Thu, Oct. 17, 2019
Damages for Violation of Forum Selection Clause
CK • Washington. On October 17, 2019, the highest German court for civil matters issued a ruling and a press release in the matter III ZR 42/19 on the liability for damages resulting from the violation of a forum selection clause.
The parties bound any disputes resulting from their contract to a court in Bonn, Germany, but the plaintiff sued the defendant in Washington, DC. After spending $196,118 on its jurisdictional challenge, the defendant won a dismissal, the plaintiff sued in Bonn, and the defendant counterclaimed for the expense incurred in its prior defense.
The Supreme Court in Karlsruhe, Bundesgerichtshof, ruled in the defendant's favor. A forum selection clause is binding, its violation constitutes a breach of contract, and the necessary expense is proximately caused by the breach, it announced in its press release headlined Schadensersatzanspruch bei Verletzung einer Gerichtsstandvereinbarung durch Klage vor einem US-amerikanischen Gericht.
CK • Washington. On October 17, 2019, the highest German court for civil matters issued a ruling and a press release in the matter III ZR 42/19 on the liability for damages resulting from the violation of a forum selection clause.
The parties bound any disputes resulting from their contract to a court in Bonn, Germany, but the plaintiff sued the defendant in Washington, DC. After spending $196,118 on its jurisdictional challenge, the defendant won a dismissal, the plaintiff sued in Bonn, and the defendant counterclaimed for the expense incurred in its prior defense.
The Supreme Court in Karlsruhe, Bundesgerichtshof, ruled in the defendant's favor. A forum selection clause is binding, its violation constitutes a breach of contract, and the necessary expense is proximately caused by the breach, it announced in its press release headlined Schadensersatzanspruch bei Verletzung einer Gerichtsstandvereinbarung durch Klage vor einem US-amerikanischen Gericht.
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