A recent federal case in the Western District of Tennessee demonstrates the importance of including a forum selection clause in any aircraft sales agreement. In McMahan Jets, LLC. v. Roadlink Transportation, Inc., the court ruled, in the absence of such a clause, that the Utah seller of an aircraft was subject to the jurisdiction of a Tennessee court when it acceded to a Mississippi buyer’s request that the aircraft be delivered to it in Tennessee.
The seller in McMahan Jets could have avoided the need for a cross-country defense by including language in its Sales Agreement selecting a more convenient forum for the resolution of disputes. Spencer Fane routinely drafts forum selection clauses and similar provisions for inclusion in aircraft sales agreements and related contracts.