What Is Forum Shopping?

Choosing the proper court can mean the difference between winning and losing a case. Forum shopping occurs when litigants select a jurisdiction that offers procedural or legal advantages. While this tactic can be advantageous, legal doctrines and court rulings limit forum selection to prevent abuse and ensure fairness.

Understanding how forum shopping works and when it is legally permissible is essential for anyone involved in litigation. Learn how experienced attorneys navigate this process to build the strongest case possible.

How Forum Shopping Works

For a particular court to hear and rule over a case, that court must have legal authority over the parties involved in the lawsuit. Personal jurisdiction is determined by the parties’ ties to a state, such as residency, property, or business operations.

Choice of law is the term used to describe the legal process of determining which state’s law applies to a multi-jurisdictional case. Determining jurisdiction is essential because different states have more plaintiff-friendly laws.

The parties must follow the court’s procedural rules when filing a lawsuit. These rules dictate how the lawsuit is filed, heard, and resolved. Different courts may have different filing deadlines, rules on evidence, or jury selection procedures. Missing these deadlines or not following the rules can result in the case getting dismissed. The substantive laws of each state also vary. These laws define the obligations, rights, and responsibilities of the parties. Some states offer stronger consumer protections, higher damage awards, or more favorable contract laws.

In addition to state courts, there are federal courts. Diversity jurisdiction lets federal courts hear civil lawsuits between parties from different states (or states and a foreign country) if the amount in dispute exceeds $75,000. To prevent parties from trying to get a more favorable outcome by suing in federal court rather than state court, the U.S. Supreme Court created the Erie Doctrine. This doctrine states that when a federal court hears a case through diversity jurisdiction, it must apply the substantive law of the state where the case originated. The Erie Doctrine encourages uniformity and fairness in how laws are applied across state lines to prevent a conflict of laws.

Legal Strategy and the Significance of Forum Shopping

Choosing the proper jurisdiction can affect legal standards, procedural rules, damage awards, and case timelines. Some courts are faster than others by working through their dockets quicker. Other courts experience long delays, which can delay your ability to find resolution and recovery. Some jurisdictions impose caps on damages (such as medical malpractice claims), while others do not. Jury pools and judicial leanings can impact case results. Some venues are more plaintiff-friendly, while others favor defendants.

Personal injury plaintiffs will want to file in jurisdictions with higher compensation awards, more lenient negligent standards, and strict liability laws. It’s also enticing for plaintiffs to file a jurisdiction that awards punitive damages over a jurisdiction that prohibits them.

Business disputes are another area where forum shopping is common. These legal issues involve companies wanting to choose a jurisdiction with favorable contract interpretation laws or pro-business. Delaware is popular for companies because of its well-developed corporate law framework. Its favorable laws around governance and taxes make it a business-friendly jurisdiction.

Judges in some jurisdictions may have a history of ruling pro-plaintiff or pro-defendant based on political ideology. This will impact the parties’ strategy when filing a lawsuit or responding to one. Parties also need to consider filing in state versus federal court. State courts may be more inclined to side with local plaintiffs, while federal courts may be viewed as more neutral or business-friendly.

Legal and Ethical Limits on Forum Shopping

Because forum shopping can be so tempting, several legal limits are put in place to prevent parties from taking advantage of it.

Forum Non Conveniens

The forum non conveniens doctrine gives courts the power to dismiss a case if another jurisdiction is more appropriate to hear it.

Courts consider convenience to the parties, public interest, private interest, and access to justice when determining the best jurisdiction for a case. A dismissal does not mean the case is over; it should be heard in a more suitable jurisdiction. Some states have venue statutes that limit where lawsuits can be filed based on the defendant’s location and where the claim incident occurred.

U.S. Supreme Court Decisions on Forum Shopping

The Supreme Court of the United States (SCOTUS) ruled in Atlantic Marine Construction Co. v. U.S. District Court that a forum-selection clause in a contract should be enforced unless the party seeking to avoid it can show it would be unjust or unreasonable. This ruling clearly defines the limits of forum shopping when a contract dictates the venue for disputes.

In Burnham v. Superior Court of California, SCOTUS ruled that personal jurisdiction exists if the defendant was physically in the state when served.

SCOTUS ruled in Ford Motor Co. v. Montana Eighth Judicial District Court that states can maintain jurisdiction over cases where the defendant’s actions have a substantial connection to the state.

Famous Examples of Forum Shopping

There have been some famous situations of forum shopping in high-profile cases. Many plaintiffs have filed asbestos lawsuits in Mississippi and West Virginia because they are known for high damage rewards.

The Enron bankruptcy case was under scrutiny for the company’s forum selection clause that required all disputes to be heard in Delaware. Plaintiffs in class action lawsuits have often engaged in forum shopping to find courts that permit certification of class actions.

California is known for being friendly to class action lawsuits. In contrast, Ohio and Illinois are known for being restrictive in certifying class actions.

Practical Importance of Legal Representation

Filing a lawsuit is complicated enough. Add jurisdictional issues into the conversation, and you have a potentially complicated legal matter. Experienced attorneys help prevent time-consuming litigation or forum shopping, which can delay the case, by quickly identifying the most appropriate forum.

The other party will want to have the case heard in an alternative forum. You will need to present evidence to support why the case should be heard in your chosen court. An attorney will know the applicable jurisdiction laws. They can perform a law review to ensure you file in the correct court.

When strategizing how to approach the case, the lawyer will provide guidance on how to best pursue your claim. They will give their professional opinion on where the case will have the best chance of success. Lawyers ensure that all procedural and substantive laws are properly applied in the forum chosen for the case.

Many contracts contain clauses that specify the jurisdiction where disputes must be resolved. These clauses are often enforceable unless they are found to be unreasonable or inconvenient for one of the parties. Your attorney will also review any contracts for forum selection clauses. Courts may not enforce these clauses if they contradict public policy, such as in cases where enforcing the clause would create an unfair disadvantage for one party.

Finding Legal Help

From personal injury claims to business litigation, jurisdictional differences in law and procedure can affect everything from case timelines to potential damages awarded. While forum shopping can be a powerful legal tool, courts have implemented doctrines to maintain fairness and prevent misuse. Consulting with a skilled attorney helps litigants navigate these complexities, avoid pitfalls, and make informed decisions about where to file a lawsuit.

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