Governing law waiver of jury trial: Overview, definition, and example
What is governing law waiver of jury trial?
The governing law waiver of jury trial refers to a provision in a contract where the parties agree on the applicable law that will govern their legal disputes, and additionally waive their right to have a jury trial in case of litigation. This means that, should a dispute arise, the parties have already agreed upon the jurisdiction's laws that will apply to the dispute, and they also agree that any legal action will be decided by a judge rather than a jury.
This clause is often included in contracts to streamline dispute resolution by selecting a predictable legal framework (governing law) and eliminating the unpredictability of a jury trial. The waiver of a jury trial is typically aimed at reducing litigation time, costs, and uncertainty, especially for complex business or commercial disputes.
Why is governing law waiver of jury trial important?
The governing law component is important because it specifies which jurisdiction's laws will be used to interpret and enforce the contract, helping avoid confusion over which legal system should apply. By choosing the governing law in advance, both parties know the rules they will be dealing with if a dispute arises.
The waiver of jury trial is important because it helps ensure that any legal dispute is resolved by a judge, who may have more experience and expertise in interpreting complex legal issues than a jury. This clause can expedite the resolution of disputes, as jury trials can be lengthy and expensive. It also helps maintain more control over the proceedings, as the parties may prefer a judge's legal reasoning rather than the unpredictable nature of a jury decision.
Understanding governing law waiver of jury trial through an example
Imagine a company enters into a service agreement with a vendor, and the contract includes a governing law waiver of jury trial provision. The contract stipulates that any disputes related to the agreement will be governed by the laws of California, and the parties agree to waive their right to a jury trial. If a dispute arises over the terms of the contract, it will be resolved in a California court under California law, and the case will be decided by a judge instead of a jury.
In another example, two businesses engage in a licensing agreement for intellectual property. The contract specifies that any disputes will be governed by New York law, and both parties waive their right to a jury trial. This ensures that if litigation occurs, it will be resolved quickly and efficiently in a New York court without a jury's involvement.
An example of a governing law waiver of jury trial clause
Here’s how a governing law waiver of jury trial clause might look in a contract:
“This Agreement shall be governed by and construed in accordance with the laws of the State of [Insert State]. In the event of any dispute, the parties agree that such dispute shall be resolved by a court of competent jurisdiction, and both parties hereby waive their right to a jury trial. The court will have sole authority to hear and determine any claims arising out of or relating to this Agreement.”
Conclusion
The governing law waiver of jury trial clause provides clarity and efficiency in legal disputes by specifying the legal framework and ensuring that the case is decided by a judge rather than a jury. This provision is commonly used in commercial contracts to minimize the unpredictability and cost of jury trials and expedite the resolution of disputes. By including such a clause, parties can gain more control over the legal process and avoid lengthy, expensive jury trials.
This article contains general legal information and does not contain legal advice. Cobrief is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.