Jackson Lewis: Pennsylvania Court Enforces Forum Selection Clause in Franchise Non-compete Against Florida-based Defendant and His Non-signatory Wife | Practical Law

Jackson Lewis: Pennsylvania Court Enforces Forum Selection Clause in Franchise Non-compete Against Florida-based Defendant and His Non-signatory Wife | Practical Law

This Law Firm Publication by Jackson Lewis P.C. discusses the recent decision in AAMCO Transmissions, Inc. v. Romano, in which a Pennsylvania federal district court enforced the applicability of a forum selection clause contained within a non-compete agreement between the company and former franchisee defendants. The court denied a motion to dismiss and a motion for transfer of venue by the husband and wife defendants, noting that a forum selection clause can survive the termination of a contract which contains survival provisions for other clauses but not the forum selection clause. Although the contract was signed by the husband, but not his wife, the court held that non-signatory third parties who are closely related to a contractual relationship are bound by forum selection clauses in contracts underlying the contractual relationship.

Jackson Lewis: Pennsylvania Court Enforces Forum Selection Clause in Franchise Non-compete Against Florida-based Defendant and His Non-signatory Wife

by Jackson Lewis P.C.
Published on 29 Aug 2014Pennsylvania, United States
This Law Firm Publication by Jackson Lewis P.C. discusses the recent decision in AAMCO Transmissions, Inc. v. Romano, in which a Pennsylvania federal district court enforced the applicability of a forum selection clause contained within a non-compete agreement between the company and former franchisee defendants. The court denied a motion to dismiss and a motion for transfer of venue by the husband and wife defendants, noting that a forum selection clause can survive the termination of a contract which contains survival provisions for other clauses but not the forum selection clause. Although the contract was signed by the husband, but not his wife, the court held that non-signatory third parties who are closely related to a contractual relationship are bound by forum selection clauses in contracts underlying the contractual relationship.