Opinion ID: 2782037
Heading Depth: 3
Heading Rank: 2

Heading: The Forum Selection Clause in the CEP III

Text: Transfer Agreement Carlyle argues that we could also affirm the District Court’s remand on the alternative ground that one of the agreements containing a release that Carlyle seeks to enforce also contains an enforceable forum selection clause. We agree. 5 5 “We may affirm a district court for any reason supported by the record.” Brightwell v. Lehman, 637 F.3d 187, 191 (3d Cir. 2011) (internal citations omitted). 12 The CEP III Transfer Agreement’s forum clause allows for litigation in English courts, Delaware state court, New York state court, or the U.S. District Court for the Southern District of New York. The clause’s reach in terms of parties covered and disputes covered is broader than the forum clause in the Subscription Agreement. It applies to “any Affiliate of any party” to any action or dispute “arising out of or relating in any way” to the agreement. R. at 870a. Thus, all parties to the CEP III Transfer Agreement agreed that any litigation, including litigation brought by or against their affiliates, relating “in any way” to the agreement, would be brought only in one of the four specified jurisdictions. This included Delaware state court, but did not permit litigation in the U.S. District Court for the District of Delaware. Removal is only permitted when the case could have originally been brought in federal court. 28 U.S.C. § 1441(a); In re Briscoe, 448 F.3d 201, 215 (3d Cir. 2006). Because the forum selection clause does not designate Delaware federal court as a possible forum, Count I could not have been brought there. Thus, under terms of this clause, which plainly binds defendants as affiliates of signatory Bundora Associates, Inc., Count I is not removable to federal court. Furthermore, if one claim is not removable due to a forum selection clause, the other claims may not be severed and removed. To hold otherwise would be to invite piecemeal litigation and to allow plaintiffs to circumvent forum selection clauses through artful pleading of additional claims. See Crescent Int’l, 857 F.2d at 945