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• W1204241306 startingPage "467" @default.
• W1204241306 abstract "I. THE LEGEND OF THE GHOST PARTY Imagine for a moment that you own a business that operates as a normal business would; regularly developing relationships and conducting business with other businesses that, in turn, conduct additional business with other outside parties. Suppose further that you have representatives, employees, sub-contractual workers, umbrella corporations, or simply general business affiliates that represent or do business with your overall organization, signing separate contracts with outside entities occasion and potentially putting your business in the crossfires of future contractual litigation. (1) Would you think to review these separate contracts to ensure that you and your business would not be subject to a lawsuit in a random jurisdiction (2) due to a forum selection clause (3) within their contract? On the opposite end of the hypothetical, suppose you are an average consumer that entered into a contractual relationship with a business and for whatever reason you have been damaged and you are attempting to file suit against the business for relief. You would not think that a non-contracting party who has been included in the suit would be able to step into the shoes of an actual contracting party and assert certain rights against you under the contract. Thus, the ultimate question is whether a party who has not agreed to the terms of a contract can actually enforce or be bound to those terms. The Court of Appeals in Adams v. Raintree Vacation Exchange LLC, (4) found itself at the cusp of this hybrid question in contract and procedural law, (5) as the court affirmed the trial court in support of a determination asserting that a non-party to a contract in dispute may potentially be bound by the contract's forum selection clause, and in addition, may bind other applicable parties to these clauses as well. (6) The Illinois district court set the stage (7) and Seventh Circuit Court of Appeals Judge Richard Posner (8) later agreed that the application of the clause to non-parties may very well be possible. (9) These two courts do not appear to be the only ones asserting this determination. (10) Raintree (11) has officially brought to light the numerous unanswered questions concerning subrogation (12) in forum selection clauses that have gone unanswered in the past. (13) The Raintree plaintiffs had purchased a timeshare unit in Mexico. (14) The Adams bought the timeshare from a Mexican company named Desarollos Turisticos Regina (DTR), which became an affiliate of Raintree Vacation Exchange (Raintree). (15) The contracts involving the purchase of the timeshares included a forum selection clause requiring any litigation take place in Mexico City federal district courts. (16) The plaintiffs alleged that Starwood Vacation Ownership (Starwood) (17) and Raintree conspired to defraud them using a fake Mexican subsidiary to accept their money even though they did not intend to build a timeshare resort as promised. (18) Raintree and Starwood filed a motion to dismiss due to the existence of the forum selection clause. (19) On appeal, the plaintiffs argued that the defendants were not afforded the use of the forum selection clause because neither party was a signatory to the contract that the plaintiffs had signed with DTR. (20) Judge Posner noted that the plaintiffs were unable to point to any authority to support their claim that litigants who are not parties to a contract cannot rely such a contract's choice of forum provision thus he trudged on in search of a determinative test to apply to non-signatories in similar circumstances. (21) In the wake of non-party adhesion becoming an increasingly large problem for the federal and state courts, this comment proposes a modification to the test set forth by Judge Posner in Raintree. This comment also makes a call to the Supreme Court for action in determining a ceiling standard for non-party invocation of forum selection clauses. …" @default.
• W1204241306 created "2016-06-24" @default.
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• W1204241306 date "2014-06-22" @default.
• W1204241306 modified "2023-09-26" @default.
• W1204241306 title "Ghosts Have Rights Too! A New Era in Contractual Rights: Third-Party Invocation in Forum Selection Clauses" @default.
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