California Court Holds That NY Choice Of Forum Is Unenforceable

Author:Ms Amanda Baker
Profession:Mayer Brown
 
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On October 31, 2019, in a lease dispute related to credit card processing equipment, a California appellate court held that the parties' choice of New York forum for dispute resolution was unenforceable due to the existence of a pre-dispute waiver of a non-waivable right guaranteed by the California constitution, statutes, and case law interpreting the same. With a lot of fintech business conducted in northern California, this decision refusing to uphold New York choice of law and forum since the underlying agreement included a waiver that was impermissible under California law is significant. The case is Handoush v. Lease Fin. Group, LLC, No. A150863, 2019 WL 5615674 (Cal. Ct. App. Oct. 31, 2019).

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