In a significant decision, the California Supreme Court clarified that forum-selection clauses included in corporate charter documents are not unenforceable simply because the designated forum, such as the Delaware Court of Chancery, does not provide the right to a jury trial. The Court drew a clear distinction between predispute jury trial waivers and forum selection clauses, noting that California’s right to a jury trial applies only to courts within the state.
For public companies, particularly California-based firms incorporated in Delaware, this ruling offers a welcome measure of predictability when it comes to structuring governance documents and intra-corporate litigation strategies.
To explore how this affects corporate governance frameworks and litigation planning, check out the full alert.
