Tag Archives: federal arbitration act preemption

There’s No Place Like Home: Forum Selection, Arbitration & Home-Field Advantage

Wednesday WisdomTo limit the risk of litigating in multiple jurisdictions, regional and national prime contractors usually seek to centralize dispute resolution by including a forum selection clause in their subcontracts.  But some states, North Carolina included, have statutes on the books declaring such clauses unenforceable as against public policy.  See N.C. Gen. Stat. §§ 22B-2, 3.  The legislatures in states like North Carolina apparently have concluded that subs should be able to litigate in the state in which the project is being built. While that public policy is no doubt embraced by local subs, it might irk primes who perform work across state lines.

Which begs this question: can prime contractors circumvent such anti-forum selection statutes and ensure home field advantage when litigating against first-tier subcontractors?

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Filed under Arbitration, Federal law, policy & news, Forum Selection Clauses, State law, policy & news, Subcontractors