Atlantic Marine Construction Co., Inc., a Virginia corporation, subcontracted with J-Crew Management, Inc., a Texas corporation, on a federal construction project located in the Western District of Texas. The subcontract contained a forum-selection clause requiring that any dispute be litigated in state court in Norfolk, Virginia, or in the U.S. District Court for the Eastern District of Virginia, Norfolk Division. Despite that clause, J-Crew sued Atlantic Marine in the Western District of Texas for alleged nonpayment. Atlantic Marine moved (1) to dismiss for improper venue under Federal Rule of Civil Procedure 12(b)(3) and 28 U.S.C. § 1406(a), or (2) in the alternative, to transfer under 28 U.S.C. § 1404(a) to the Eastern District of Virginia. The district court denied both requests, reasoning that venue was proper in Texas under § 1391(b) because a substantial part of the events occurred there and that the balance of private and public interests under § 1404(a) did not justify transfer. The Fifth Circuit denied Atlantic Marine's mandamus petition, applying its traditional § 1404(a) balancing framework and giving weight to the plaintiff's choice of forum. The Supreme Court granted certiorari.
When a valid forum-selection clause points to a different forum, what is the proper procedural mechanism to enforce it in federal court, who bears the burden, and how does the § 1404(a)/forum non conveniens analysis change?
A valid, mandatory forum-selection clause should be given controlling weight in all but the most exceptional cases. If the clause points to another federal forum, the proper mechanism is a motion to transfer under 28 U.S.C. § 1404(a). If it points to a state or foreign forum, the proper mechanism is dismissal under the doctrine of forum non conveniens. When a valid forum-selection clause is at issue: (1) the plaintiff's choice of forum merits no weight; (2) the court must not consider the parties' private interests, which are deemed to favor the preselected forum; (3) only public-interest factors may be considered, and they will rarely defeat transfer or dismissal; (4) the party defying the clause bears the burden of showing that public-interest factors overwhelmingly disfavor the selected forum; and (5) upon transfer, the transferee court applies the choice-of-law rules and substantive law that would have applied had the action been filed there originally (a limited exception to Van Dusen). Rule 12(b)(3) and § 1406 are not proper vehicles to enforce a forum-selection clause when venue is otherwise proper under § 1391.
The Supreme Court held that a valid forum-selection clause must be enforced by transfer under § 1404(a) when it designates another federal forum, and by forum non conveniens dismissal when it designates a nonfederal forum. The plaintiff's choice of forum receives no weight, private-interest factors are not considered, only public-interest factors may be weighed (and rarely defeat enforcement), and the plaintiff bears the burden to show extraordinary circumstances. Because venue in Texas was proper under § 1391, Rule 12(b)(3)/§ 1406 did not apply. The Court directed that the case be transferred to the Eastern District of Virginia.
The Court began by distinguishing improper venue from contractual forum selection. Venue is "wrong" or "improper" only when it fails § 1391; a forum-selection clause does not make an otherwise proper venue improper. Thus, Rule 12(b)(3) and § 1406 are the wrong tools. Instead, § 1404(a) codifies the federal version of forum non conveniens for transfers among federal courts. When parties have agreed to a forum, that agreement reflects their private convenience and should be respected absent extraordinary public-interest reasons to the contrary. The Court restructured the § 1404(a) analysis to reflect the contract. First, the plaintiff's forum choice ordinarily receives deference, but a party who flouts a valid forum-selection clause has forfeited that entitlement. Second, private-interest factors—convenience of parties and witnesses, costs, access to proof—are presumed to favor the preselected forum because the clause represents the parties' ex ante allocation of those considerations; courts therefore may not consider them. Third, only public-interest factors remain (court congestion, local interest in deciding localized controversies at home, familiarity with governing law, and avoidance of conflicts-of-law problems). These rarely outweigh the clause because honoring contracts serves systemic interests and reduces forum shopping. The Court also addressed choice-of-law consequences. Normally, after a § 1404(a) transfer, Van Dusen requires application of the transferor forum's choice-of-law rules. But where transfer enforces a forum-selection clause, Van Dusen does not apply; instead, the transferee forum applies the law it would have applied if the case had been filed there initially. This prevents plaintiffs from evading the forum-selection clause by filing in a different forum to capture more favorable law. Finally, the Court explained that when a clause selects a state or foreign tribunal, dismissal under forum non conveniens (rather than § 1404(a) transfer) is appropriate because § 1404(a) authorizes transfers only within the federal system. In both settings, the same allocation of burdens and limitation to public-interest factors applies. Because the district court and Fifth Circuit had weighed private interests and treated the plaintiff's forum choice with traditional deference, they misapplied the standard. The Supreme Court therefore ordered transfer to the Eastern District of Virginia.
Atlantic Marine is the definitive federal-court blueprint for enforcing forum-selection clauses. It channels enforcement through § 1404(a) or forum non conveniens, reallocates the burden to the clause-defying plaintiff, strips out private-interest factors from the analysis, and limits judicial discretion to rare public-interest concerns. It also creates a targeted exception to Van Dusen's choice-of-law rule to deter gamesmanship. For law students, the case integrates contract autonomy with civil procedure mechanics. It is frequently tested for: (1) the correct procedural vehicle (transfer vs. dismissal), (2) the altered § 1404(a) framework, (3) the burden shift and devaluation of plaintiff's forum choice, (4) the inapplicability of Rule 12(b)(3)/§ 1406 when venue is otherwise proper, and (5) the choice-of-law consequence upon transfer.
Atlantic Marine cements the primacy of forum-selection clauses by aligning federal transfer and dismissal doctrines with the parties' contractual commitments. It sharply narrows judicial discretion, eliminates private-interest balancing, and places the burden on the clause-defying plaintiff to show extraordinary public-interest reasons not to honor the parties' agreement.