Zapata entered into a contract with a German corporation to use one of Zapata’s oil-drilling rigs off the coast of Italy. The contract stated, “Any dispute arising must be treated before the London...



Zapata entered into a contract with a German corporation to use one of Zapata’s oil-drilling rigs off the coast of Italy. The contract stated, “Any dispute arising must be treated before the London Court of Justice.” A severe storm damaged the oil rig as it was being towed through the Gulf of Mexico. Zapata filed suit in federal district court. Does the U.S. court have jurisdiction to decide the dispute? What is the purpose behind a choice-of-forum clause, and should the clause be enforced?


Sep 19, 2022
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