Pete Rock recorded a bunch of songs. He signed a recording contract authorizing release of an album to feature at least 10 of the Rock tunes. The contract also required venue in England for any "legal proceedings" arising out of it.
Mr. Rock sued in New York for breach of the contract (failure to make a payment) and for copyright infringement and state law violations relating to release of a second album of songs without his permission. The district court dismissed the whole case under the forum selection clause for litigation in Albion.
The Second Circuit affirmed dismissal of the contract claim but reversed as to copyright and state law claims, holding that the former did but the latter did not arise out of the contract. The court regretted splitting the case between New York and England but not enough to allow dismissal of the whole thing in favor of proceedings in Blighty. Phillips v. Audio Active Ltd., No. 05-7017-cv (2d Cir. July 24, 2007).