Skip to content

Question

Is there a workaround if an NDA requires disputes in another state?

I'm happy to sign my client's NDA, but it requires any legal disputes to be resolved in New York. I'd rather not hassle them, but I'm worried about the expense if a dispute ever arose. What are my options?

Rocket copilot

Answer

Yes, you have options—but they usually require agreement before you sign. Forum selection clauses (like requiring New York courts) are generally enforceable and are given controlling weight in most cases under federal law, so your best chance to change or soften them is during negotiation.

If you sign as-is, you may need to handle disputes in that state. But you can often adjust the clause to reduce cost and inconvenience.

What are practical ways to reduce the burden?

You can propose alternatives that keep things fair without rejecting the NDA. Common options include using arbitration instead of court, choosing a neutral location, or allowing remote proceedings.

Another approach is to keep New York as the legal forum but allow virtual hearings or mediation first. This can reduce travel and legal costs if a dispute happens.

Do you have to push back, or can you accept the risk?

It depends on the situation. If the risk of a dispute is low and the NDA is limited in scope, you may decide the cost risk is acceptable.

But if the agreement involves sensitive information or higher stakes, even a small change—like adding arbitration or remote options—can make a big difference.

What to do next...

  1. Review the forum clause and identify your main concerns.
  2. Ask for small, practical changes (like arbitration or remote hearings).
  3. Consider a neutral location instead of the client's state.
  4. Weigh the risk of a dispute against the value of the deal.

What to consider in your specific situation

While forum clauses are common, how much they matter depends on your risk and business setup.

  • The likelihood of a dispute under the NDA.
  • The cost of travel and legal counsel in that state.
  • The value and sensitivity of the information involved.
  • Your ability to negotiate small changes without friction.
  • Whether remote or alternative dispute options are allowed.
  • The overall importance of the client relationship.

Even small adjustments can make dispute terms more practical without slowing down the deal. Since every situation is different, consider more information through Rocket Copilot, a Legal Pro, or a legal document review to move forward with confidence.

Published on 04/20/2026Written by Laura BojartReviewed by Legal Pros

At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.

Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.

Need help navigating legalese in a contract?

Dispute terms like governing law, jurisdiction, and arbitration can be confusing — and poor choices can make resolving conflicts more costly and time-consuming. As a Rocket Lawyer member, you’ll have support at every step:

  • Rocket Copilot Q&A for instant legal information
  • Ask a Legal Pro for human responses within a business day
  • Document insights, Contract Review, and other smart legal tools

Get legal confidence for less than the price of your daily coffee.

 

Explore more about dispute resolution contract clauses

Explore more questions about jurisdiction clauses

Disclosures

  1. This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.