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ARTICLE · 23 JANUARY 2014

Supreme Court Endorses Forum Selection Clauses

The Supreme Court has strongly endorsed forum selection clauses in government subcontracts.

United StatesGovernment, Public Sector

Thomas M. "Tom" Brownell is a Partner in our Northern-Virginia office .

The Supreme Court has strongly endorsed forum selection clauses in government subcontracts. In Atlantic Marine Construction Company, Inc. v. U. S. Dist. Court, 234 S.Ct. 568 (U.S. December 3, 2013), Atlantic Marine, a Virginia-based company, was the prime contractor on a U.S. Army contract to build a child development center at Ft. Hood, Texas. It hired a local Texas subcontractor, J-Crew, and inserted a clause in the subcontract requiring that all disputes between the parties be litigated in Virginia state or federal courts. When J-Crew sued in Texas, the district court denied Atlantic Marine's motion to transfer the case to Virginia or dismiss for forum non-conveniens and Atlantic Marine appealed. The Supreme Court reversed both the district court and the court of appeals, which had allowed the case to proceed in Texas, reasoning that it was improper to dismiss or transfer because the case

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