Forum Selection Clauses

"Choice of law provisions for consumer law are governed by ORS 15 as noted above. Construction contracts are also expressly forbidden under ORS 701.640 to :

include any provision, covenant or clause that:

(a) Makes the construction contract subject to the laws of another state or that requires any litigation, arbitration or other dispute resolution proceeding arising from the construction contract to be conducted in another state; or

(b) States that a party to the construction contract cannot suspend performance under the construction contract or terminate the construction contract if another party to the construction contract fails to make prompt payments under the construction contract pursuant to ORS 701.620 to 701.640.

(2) Any provision, covenant or clause described in subsection (1) of this section is void and unenforceable.

There may however, be exceptions to this provision in certain circumstances as guided by common law. "

"Except for restrictions on forum selection changes in consumer leases, Oregon statutes do not address forum or venue selection clauses.  These clauses are generally enforceable unless enforcement would be unfair, unreasonable, unjust or if the clause is invalid for fraud or overreaching reasons.  Reeves v. Chem. Industrial Co., 262 Or. 95 (1972)

see also Trinity v. Apex Directional Drilling LLC, 363 Or. 257, 262 (2018) (forum selection clause was not unreasonable merely because another forum was more convenient); A forum selection clause in a lease was not enforced in one case because the court found that the parties did not bargain over the clause, which was contained in fine print in a lease that was characterized as a contract of adhesion.Colonial Leasing Co. v. Pugh Bros. Garage,735 F.2d 380 (9th Cir. 1984).; However, almost the same forum selection clause was later upheld by the Oregon Court of Appeals, which did not find the clause to be unreasonable or unfair.; In that case, the counsel for the lessor submitted an affidavit that the forum selection clause would have been negotiated if requested by the lessee; Colonial Leasing Co. v. McIlroy, 94 Or. App. 273, 765 P.2d 219 (1988)."