I signed a business contract with the clause "in the event a dispute arises in connection with this agreement the parties agree to attempt to resolve the dispute through friendly mediation. In the event that the dispute cannot be resolved, the parties agree that all litigation will be governed by the laws of the Commonwealth of Pennsylvania and all actions must be instituted in state court in Philadelphia County, Penn..."
I live and do business in Arizona. He is now threatening to sue me for a breach of contract. I have proof that I didn't breech the contract. But he knows that I will pay more to defend myself than the $6000 he is demanding to make it all go away. Can he really make me come to court in Pennsylvania to defend myself?
It sounds like that is a "choice of venue" clause. Any dispute, whether you are suing him or vice versa, has to be brought in Philadelphia County.
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