Fifth Circuit Upholds and Enforces Forum Selection Clause

When PCL Civil Constructors, Inc, (PCL) alleged Command Construction Industries (Command) defaulted under the subcontract, PCL sought payment from the performance bond Arch Insurance Company (Arch) issued to Command. The case involved three connected contracts. The initial, or prime contract, existed between PCL and the Louisiana Department of Transportation and Development. This contract included a clause specifying the forum for litigation. The subcontract between PCL and Command incorporated all the provisions of the prime contract. Finally, the bond issued by Arch incorporated the subcontract. When Arch filed for dismissal because PCL filed the suit in the wrong court, the district court granted the motion. On appeal, the Fifth Circuit affirmed the decision. Read more here.