Atlantic Marine Construction v. US District Court
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| Atlantic Marine Construction v. US District Court | |
| Court | Supreme Court of the United States |
|---|---|
| Citation | |
| Date decided | 2013-12-3 |
| Appealed from | 5th Circuit |
Facts
Atlantic Marine Construction Co. ("AMC"), a Virginia corporation, contracted with the United States Army Corps of Engineers to build a childhood development center in Fort Hood, Texas.
AMC sub-contracted some of the work to J-Crew Management, a Texas corporation. The contract with J-Crew included a forum-selection clause for any litigation in either (1) the Norfolk, Virginia circuit court or (2) US District Court for the Eastern District of Virginia ( E.D. Va.).Procedural History
Following a payment dispute, J-Crew sued AMC in US federal western district court of Texas.
AMC moved to dismiss the case, contending the wrong venue & improper under 28 U.S. Code § 1406(a). AMC loses.Issues
Should a federal district court transfer a case to the federal venue designated by the parties in a valid forum-selection clause?
Holding
Yes. Section 1404(a) is the appropriate mechanism for enforcing a valid forum-selection clause & the clause should be enforced absent extraordinary circumstances.
Reasons
Samuel Alito: Trial courts normally consider both (1) convenience & (2) public interest in assessing a Section 1404(a) motion to transfer venue.
Rule
If the forum-selection clause points to a non-federal forum, the correct enforcement mechanism is the doctrine of forum non conveniens.
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