Atlantic Marine Construction v. US District Court

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.).

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.

Should a federal district court transfer a case to the federal venue designated by the parties in a valid forum-selection clause?

Yes. Section 1404(a) is the appropriate mechanism for enforcing a valid forum-selection clause & the clause should be enforced absent extraordinary circumstances.

Samuel Alito: Trial courts normally consider both (1) convenience & (2) public interest in assessing a Section 1404(a) motion to transfer venue.