Civil Procedure Multistate Bar Practice Exam

When a federal court enforces a forum selection clause, which law governs the transfer?

1. Only state law

2. Federal law

3. The law of the original state

4. Local district court rules

The correct answer is: Federal law

When a federal court enforces a forum selection clause and considers a transfer of venue, federal law governs the procedural aspects of the transfer. This is rooted in the federal courts' authority under statutes like 28 U.S.C. § 1446, which governs removal and venue issues, and § 1404, which specifically deals with the transfer of cases among federal courts for the convenience of parties and witnesses, as well as in the interest of justice. While state law might influence the interpretation of the forum selection clause itself during the initial stages (particularly if there are questions of contract formation or enforceability under a state’s contract law), once the forum selection clause is invoked and a motion to transfer is made, federal procedural rules will dictate how the transfer occurs. The clarity and uniformity of federal procedures help ensure that cases are handled fairly and consistently across the jurisdictions, reflecting the federal interest in maintaining order in federal court operations. The other choices might imply that local or state rules heavily influence the enforcement of such clauses, but that is not the case during the transfer process in federal courts. The process follows federal standards that are in line with the statutory framework provided by Congress.