San Diego Gas & Elec. Co. v. Ninth Judicial Dist. CourtAnnotate this Case
San Diego Gas & Electric Co. (“San Diego”) and several NaturEner wind-energy companies (“NaturEner”) entered into two contracts, a purchase agreement and a contribution agreement, under which San Diego agreed to purchase renewable energy credits and electricity from NaturEner. The credits and electricity are generated at a wind farm in Montana. The purchase agreement contained a forum selection clause stating that the parties consented to conduct all litigation in California. San Diego filed suit in a California court seeking a declaration that NaturEner had not satisfied the “Avian Conditions” of the agreements. NaturEner filed a nearly identical suit in a Montana court seeking a declaration that it had satisfied the conditions. San Diego filed a motion to dismiss or stay, which the district court denied. San Diego then petitioned the Supreme Court to exercise supervisory control, claiming that the district court erred by accepting jurisdiction over the parties’ dispute in light of the purchase agreement’s forum selection clause, as well as forum non conveniens. The Supreme Court granted the application for writ of supervisory control, holding (1) the forum selection clause contained in the purchase agreement was mandatory in nature; and (2) related issues regarding the contribution agreement would be appropriately and justly tried in California as well.