The Delaware Court of Chancery has affirmed the validity of an exclusive forum provision requiring any disputes between an engineering company and its client to be resolved by a Delaware state or federal court. In its ruling, the Chancery Court granted the engineering company’s motion to declare that the Delaware forum provision trumped a separate agreement between the two parties that applied Georgia law to any possible litigation.
The case, BE&K Engineering v. RockTenn CP, is the first major ruling from the Chancery Court on exclusive forum provisions since Chancellor Leo E. Strine Jr. upheld their validity last summer in Boilermakers Local 154 Retirement Fund v. Chevron. Chevron Corp. and FedEx Corp., the defendants in the Strine ruling, said they are not planning to appeal the chancellor’s decision to the Delaware Supreme Court.
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