This contract tip is about venue selection when two U.S. parties choose litigation to resolve disputes. The issues get much more complicated when you are evaluating cross-border contracts, so that's a separate discussion.
Consider these five things as you evaluate your venue provision:
1. Does the jurisdiction allow you to select it for this deal? Some states are pretty open (California), some have a handful of limitations (New York), and others states flat out do not allow venue unless a party has a connection to the jurisdiction. Make sure you can select the jurisdiction before you do.
2. Do you have a "suing the Pope in Vatican City" problem? If your counterpart is the largest employer in a particular county, you may be reluctant to have the litigation there.
3. Where are the records and people? If everyone and everything related to the contract takes place in Seattle, does it really make sense to have the case in Maine?
4. Can you afford to manage complex litigation across the country? The less legal budget you have, the more painful a faraway lawsuit may be.
5. Does the jurisdiction have laws favorable to your likely claims? You may want to evaluate the state's procedural rules, particularly ones that can affect the case. For example, if you want to limit your counterparty's time to bring a claim, you may want to select a jurisdiction where the limits are shorter and the issue is determined by the state's procedural laws.
What other considerations should the parties make when it comes to selecting venue?
