(University of Oregon School of Law, 2016-01-27) Vincent, Eleanor J.
The significant increase in multi-forum litigation of intra-corporate disputes over the last decade has imposed considerable monetary costs on stockholders and raised uncertainty in outcomes. Forum selection bylaws, unilaterally adopted by corporate boards of directors and generally restricting the forum for intra-corporate lawsuits to the state of incorporation, have emerged as a popular solution to this costly problem. In 2013 and early 2014, courts both inside and outside of Delaware rendered favorable decisions for corporations on these bylaws, signaling general acceptance of their validity and enforceability. However, an Oregon court’s contrary decision has thrown this general acceptance into question.
