Venue

With the 2004 Olympics approaching, we are sure to hear a good deal about the “venue” for boxing and the “venue” for sailing. Venue is also an important concept in civil litigation. Sometimes the selection of venue for a particular kind of lawsuit is easy. When a car accident is involved, venue is proper in the county where the accident took place or where the defendant driver resides. In business cases, the issue of venue can be more complicated and more troublesome. Persons who are injured on cruise ships out of the country often learn that they have a difficult time filing suit anywhere in the United States. Persons injured at Florida resorts, such as Disney World, also have a difficult time filing a claim in Pennsylvania. That is because the Pennsylvania Rules of Civil Procedure require that lawsuits against corporate defendants take place where the defendant “regularly” conducts business. If a defendant merely advertises in Pennsylvania, there may not be enough business to justify location of a lawsuit here.

Since business is now conducted on a national and global scale, litigation of disputes, particularly smaller ones, can be problematic if venue is not local. Local companies that sell products to out of county or out of state buyers should beware that collection efforts can be costly because of travel and distance problems.

Since venue is often an important consideration in litigation, local business persons are wise to place forum selection clauses in their agreements. Forum selection clauses will usually be enforced if reasonable and if fairly negotiated in the process. Particularly in smaller cases, having a case tried in your “home court” is a distinct advantage because the opposing party must travel and familiarize itself with local procedures.

— Bill Brennan