The Jurisdiction Trap: Why You May Be Forced to Fight Your Case in Another State

You signed a contract in New York. You performed the work in New Jersey. So why are you being sued in Delaware—or worse, California?

The answer lies in a clause buried in many contracts: the jurisdiction clause (sometimes called a forum selection clause). It dictates where disputes must be litigated, and it can leave you defending your rights hundreds of miles from home.

What Is a Jurisdiction Clause?

A jurisdiction or forum selection clause tells you where any disputes must be resolved. For example, a New Jersey business contract might say: “Any litigation shall be brought in the courts of the State of Texas.” That means if a dispute arises, you’re headed to Texas—whether you like it or not.

Why Businesses Should Worry

1. Higher Costs: You may need to hire out-of-state lawyers and travel for court appearances.
2. Unfamiliar Courts: Judges in another state may apply laws differently than your local courts.
3. Lost Leverage: The other side may count on the cost and inconvenience to force you into settlement.

Can You Fight a Jurisdiction Clause?

Sometimes. Courts may strike down jurisdiction clauses if they are:

• Unreasonable or unfair: If it’s clearly designed to disadvantage one side
• Contrary to public policy: If it violates your state’s protections
• Hidden or non-negotiated: If buried in fine print without true consent

How to Protect Yourself

• Negotiate jurisdiction up front: Push for your home state or a neutral location
• Use arbitration or mediation clauses carefully: They may still restrict location
• Have every contract reviewed: A quick review can prevent years of litigation headaches

JDE Law Firm Can Help

At JDE Law Firm, PLLC, we help businesses negotiate and enforce contracts that don’t strip away your leverage. If you’re facing a dispute in another state—or want to avoid that risk—we’ll put the law back on your side.

📞 NY: 718-966-0877 | NJ: 732-490-7120

👉 Book a Contract Enforcement Consultation