Garage door industry magazine for garage door dealers, garage door manufacturers, garage door distributors, garage door installers, loading docks, garage door operators and openers, gates, and tools for the door industry.
Issue link: https://idoi.epubxp.com/i/177021
LegaL&LegisLation; (continued from page 10) Therefore, venue in the Western District of Texas would have been proper, if Section 1404 governs. Because the forum-selection clause designated another "proper" federal forum proper in the Eastern District of Virginia, the Fifth Circuit had two options: either the court could transfer to the case to Virginia, or it could keep the case in Texas "in the interest of justice" and "[f]or the convenience of parties and witnesses." Although the Atlantic Marine case does not directly turn on the issue of enforcement of a state statute prohibiting forum-selection clauses, the fear of some observers is that an opinion from the Supreme Court could affect or invalidate those statutes as well. At the present time, there are twenty-two states which have passed laws to invalidate forum-selection clauses to the extent they require a party to fle suit in a state other than the state where the project was located. Several state and federal courts have refused to give effect to those statutes, particularly when the contract or subcontract contains an arbitration clause along with the forumselection clause. For this reason, the Atlantic Marine case will be watched that much more closely. Setting aside the outcome of the Atlantic Marine case, which appears to turn only on federal venue statutes and therefore should only affect federal court cases, the safest way for IDA members to have control over where he or she has to litigate disputes is to be mindful of the language in contracts signed by the member. There are numerous contract clauses to be mindful of, but the most important ones on this issue are regarding forum selection, choice of law, and arbitration. When a member contracts with a person or company from another state, he risks being forced to use another state's courts, another state's laws, or being pulled into arbitration in another state, unless the contract provides otherwise. We will report further on the Supreme Court case after it rules, most likely V o l u m e some time next year. Until then, we would recommend that all members take a fresh look at their own contracts, and a particularly detailed look at any contracts or subcontracts presented to them by others. Even in times with limited work and low margins, the potential cost of having to go across the country to collect on a payment dispute may outweigh all other considerations of taking a given job. Brian J. Schoolman is a senior attorney with Safran Law Offces in Raleigh, North Carolina. John Long is a Summer 2013 clerk with Safran Law Offces, and will be completing his third year at Campbell Law School. For more information regarding the Atlantic Marine case, or any other legal issues, please contact Brian at bschoolman@ safranlaw.com. 4 6 I s s u e 5 2 0 1 3 13