High Court To Review Forum Clause In Construction Contract

By Dietrich Knauth (April 1, 2013, 5:07 PM EDT) -- The U.S. Supreme Court said Monday that it will review a Fifth Circuit ruling on the enforceability of a choice-of-forum clause in a subcontract for federal construction work, a move that could resolve a circuit split and reverse a decision that the appellant criticized as encouraging forum shopping.

The Fifth Circuit held in November that a dispute between Atlantic Marine Construction Co. and its subcontractor J-Crew Management Inc. was properly brought in Texas federal court despite an agreement that any dispute related to their construction project would be resolved in Atlantic Marine's home state of Virginia.

Because the construction took place...

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