Governing law and dispute resolution
This clause specifies which state's laws will be used to interpret the contract and where any legal disputes must be resolved. For example, it might state
In plain English
This clause specifies which state's laws will be used to interpret the contract and where any legal disputes must be resolved. For example, it might state that New York law applies and that any lawsuits must be filed in a court in New York.
What it means in practice
In practice, this means that if you have a dispute with your publisher, you will need to resolve it under New York law and in a New York court, regardless of where you live. This could involve travel and additional legal costs, and you will need to work with a lawyer who is familiar with New York law.
What's standard
It is standard for publishing contracts to specify a particular state's law (often New York) and a location for dispute resolution (often New York County). This is generally acceptable, but authors should be aware of the implications.
Red flags
A clause that specifies a state with which you have no connection and which could impose additional burdens.
A clause that requires arbitration in a distant location, potentially increasing your costs and reducing your options.
A clause that does not allow for any form of alternative dispute resolution, such as mediation, before going to court.
What to ask for instead
Ask for a clause that allows for dispute resolution in a location convenient to you, or at least consider negotiating for a more neutral location. Alternatively, you could request a clause that includes a provision for mediation or arbitration to potentially reduce costs and resolve disputes more quickly.
This is information, not legal advice. Contracts turn on their exact wording and your circumstances — before you sign, have a publishing lawyer or a body like the Society of Authors or the Authors Guild review the actual document.