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Forum Selection Clause in Insurance Policy Valid

05/10/2019

By: Anne Briard and Céleste Elliott

On May 8, 2019, the Louisiana Supreme Court enforced a forum selection clause in a first-party insurance policy providing for a New York venue and found that Louisiana statutory law does not prohibit such enforcement. Creekstone Juban I, L.L.C. v. XL Ins. Am., Inc., 2018-0748 (La. S.Ct. 5/8/19). Louisiana Revised Statute 22:868(A)(2) provides that no insurance contract delivered or issued for delivery in Louisiana shall contain a condition “[d]epriving the courts of this state of the jurisdiction of action against the insurer.” 

Applying the plain language of the statute, the Court found that where the parties have contracted for a particular forum or venue, this does not mean that they have deprived the Louisiana courts of “jurisdiction.” The Court further noted that not enforcing the forum section clause “would undermine the ability of the parties to freely engage in sophisticated contractual agreements and thereby impair the ability of companies to do business in this state." 

Click here to read the Court's full opinion. 


From our New Orleans headquarters, Lugenbuhl shareholders Anne Briard and Céleste Elliott are members of the firm's Insurance practice. Visit the Insurance practice section to learn more about our expertise and services.

The content of this article is not intended to serve as an exhaustive review of the laws and statutes, and it is not intended to provide legal advice. The opinions expressed through this article may not reflect the opinions of the firm, individual attorneys or clients.

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