CQL Original Products, Inc. v. National Hockey League Players' Assn

In CQL Original Products, Inc. v. National Hockey League Players' Assn. (1995) 39 Cal. App. 4th 1347, a dispute arose following the termination of a merchandise licensing agreement between CQL Original Products, Inc. and the National Hockey League (NHL). The merchandiser's breach of contract suit in California was met with a motion filed by the NHL to dismiss based on a forum selection clause contained in the licensing agreement. ( Id. at p. 1353.) The trial court granted the NHL's motion. In affirming the trial court's ruling, the appellate court noted that "a forum selection clause will not be enforced if to do so will bring about a result contrary to the public policy of the forum. . . ." ( Id. at p. 1354.) After reviewing the agreement in question, the court concluded there was no public policy reason to deny enforcement of the provision. (39 Cal. App. 4th at p. 1356.) The Court of Appeal affirmed the trial court's order dismissing the action based upon a forum selection clause. The appellate court determined the clause at issue was unambiguous and mandatory. (Id. at p. 1358) Almost identical to the clause in this case, the forum selection clause in CQL Original Products provided: " 'Any claims arising hereunder shall . . . be prosecuted in the appropriate court of Ontario, Canada.' " (Ibid.)