Civil Procedure Multistate Bar Practice Exam

What is one consequence of federal enforcement of a forum selection clause?

1. The federal court must always dismiss the case

2. It considers public interest factors for transfer

3. It only applies to cases with multiple parties

4. It requires a new trial

The correct answer is: It considers public interest factors for transfer

The consequence of federal enforcement of a forum selection clause that involves considering public interest factors for transfer stems from the recognition that while the clause may dictate the preferred or agreed-upon jurisdiction for the case, the court must also weigh relevant public interest considerations. Such factors can include the local community’s interest in having the case decided in its forum, the administrative difficulties that can follow from court congestion, and the interest in having issues of state law decided by a state court. When a party requests a transfer of venue based on a forum selection clause, the federal court must not only evaluate the clause itself but also balance it against these public interest factors. This approach acknowledges that forum selection clauses are respected and enforced, but not at the expense of the overall interests of justice and fairness in the legal process. The other options do not accurately reflect the nuances of how forum selection clauses operate in federal courts. For instance, it's not a given that the court must dismiss the case; rather, it assesses whether transfer is more appropriate. Similarly, while forum selection clauses can apply to cases involving multiple parties, this is not a requirement, which makes the option misleading. Lastly, a forum selection clause does not automatically entitle a party to a new trial; typically, procedural issues regarding