Trident Labs, Inc. v. Merrill Lynch Commercial Finance Corp.

SUMMARY

The loan agreement between the parties had a forum selection clause. The borrower waived any rights to commence an action against the lender in any jurisdiction except Cook County, Illinois. The lender could enforce the loan documents either in Illinois or anywhere else the borrower or collateral might be located. The borrower sued the lender in California, where the borrower was located. The lender litigated the suit in California vigorously, removing the case to the United States District Court, Central District, and, after it was remanded, filing a cross-complaint and other pleadings and engaging in substantial discovery, including discovery motions. Then, after more than 19 months of litigation in California, the lender moved to dismiss or stay the lawsuit based on the forum selection clause that required the borrower to sue *150 in Illinois, contending that, under Code of Civil Procedure section 410.30 (section 410.30), it could make such a motion “at any time.” The trial court granted the motion and stayed the action.

We reverse, concluding that section 410.30 does not permit a motion based on a forum selection clause to be made “at any time,” and that the…