Puerto Rico Supreme Court validates forum selection clause compelling litigation in Spain

In Abengoa Puerto Rico, S.E. v. Puerto Rico Power Authority, 2009 T.S.P.R. 133 (Decided on August 14, 2009), the Puerto Rico Supreme Court validated a forum selection clause that compelled the adjudication of any controversy in Spain. The Court reiterated the norm of Unysis v. Ramallo, 128 D.P.R. 842 (1991), in which it recognized for the first time the validity of forum selection clauses in the absence of evidence that the contract was the result of duress, that the clause violates public policy, or that enforcing the clause will result in a clear injustice because it places an undue burden upon the party opposing enforcement of the foreign forum. In Abengoa the Court emphasized the sophistication of the parties who negotiated the selection of Spain as the forum for the adjudication of their contractual disputes.