3 Chi J Intl L 301
Erin Ann O’Hara
There has been an increase in the freedom to use
choice of law and choice of forum provisions to resolve future disputes
between contracting parties conferred by the US Supreme Court and lower
federal courts, over the past three decades. This article begins by exploring
the durability of courts’ enforcement of forum-selection clauses, whether
they are found in arbitration clauses or clauses selecting a certain country’s
courts to litigate in. A background for understanding the position of federal
courts on enforcing forum-selection clauses is provided by tracing through
several US Supreme Court cases beginning with Bremen v. Zapata Off-Shore
Corporation. A description of federal courts’ treatment of forum-selection
clauses under COGSA follows. The article then discusses how congressional
interference may affect enforceability and suggests what conditions are
necessary for forum-selection clauses to be enforced over the long-term.
By distinguishing between forum-selection clauses that add value to the
contract and those that fail to add value, the author explains how those
that fail to add value are unlikely to be enforced by either treaties or
courts. The article concludes that by equating international shipping contracts
to non-value added clauses, and suggests that shippers and carriers may
be better served through arbitration provisions.


