Buck v. Global Fidelity Bank Ltd.
The Third DCA construed a Cayman Islands agreement providing that "[t]he courts of the Cayman Islands shall have jurisdiction" over any dispute arising out of the agreement, and held the clause was a mandatory (not permissive) forum selection clause. Because only one defendant, John Ashley Buck, signed the agreement — which expressly barred non-parties from enforcing its terms — the court reversed the denial of the motion to dismiss as to him only and affirmed as to the nonsignatory defendants, whose challenge to the signatory-only limitation was waived by failing to raise it on appeal.
Key facts
- John Ashley Buck and Global Fidelity Bank Ltd. entered into an agreement containing a forum selection clause designating the courts of the Cayman Islands for dispute resolution.
- Buck signed the agreement, which expressly provided that only parties, successors, or permitted assignees could enforce its terms; other defendants in the case were nonsignatories.
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Why it matters
Practitioners drafting or attacking forum selection clauses should note that the Third DCA treated "shall have jurisdiction" as mandatory even without the words "exclusive" or "sole," relying on "shall" plus the… — full analysis with a trial
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