Developments in forum selection since Chevron and thoughts for the future

In the year since the Delaware Chancery Court upheld the facial validity of forum selection bylaw, courts in several other jurisdictions have enforced such bylaws to dismiss or transfer claims brought outside of the chosen forum. There are, however, still several important questions to be resolved. A year after Boilermakers Local 154 Retirement Fund v. Chevron Corporation, it is important to remember that forum selection bylaws were developed as part of a broader strategy to limit the costs and disruption caused by the explosion of stockholder litigation challenging virtually every merger transaction. To date there is little evidence that these bylaws have had any significant effect on this type of litigation, as recent statistics continue to show that more than 90% of all transactions still face lawsuits, and indeed many of these transactions face multiple suits.