This case addresses whether a valid forum selection clause can override the venue provisions of the Miller Act, 40 U.S.C. § 270b(b). We hold that it does but find the forum selection clause at issue in this case invalid. The district court’s order dismissing the case for lack of venue is reversed.
I.
North American Construction Corporation (hereinafter “North American”) contracted with the United States to install part of a ground water treatment system at Tinker Air Force Base in Midwest City, Oklahoma. St. Paul Mercury Insurance Company (hereinafter “St. Paul”) provided the payment bond to North American for the project. B & D Mechanical Contractors, Inc. (hereinafter “B & D”) entered into a subcontract with North American to provide labor and services in the completion of the water treatment system. The subcontract contained a forum selection clause stating: “The Subcontract Agreement and any claims arising under it shall be governed by the laws of the State of Texas and exclusive venue shall be proper in Bexar County, Texas.”
B & D filed claims against North American and St. Paul under the Miller Act, 40 U.S.C. § 270a-c, and for breach of contract, in the United States District Court for the Western District of Oklahoma. North American and St. Paul moved to dismiss for improper venue under Fed.R.Civ.P. 12(b)(3). The district court granted the motion to dismiss holding that the Miller Act’s venue provision was waived by the subcontract’s forum selection clause. B & D appealed. North American and St. Paul cross-appealed the district court’s order denying them attorney’s fees.
II.
B & D raises three issues on appeal: (1) whether the district court erroneously concluded that the forum selection clause in the subcontract mandated the case be brought in Bexar County, Texas; (2) whether the district court improperly resolved a factual issue against B & D in its ruling on North American’s and St. Paul’s Motion to Dismiss for Improper Venue; and (3) whether enforcing the forum selection clause would be unreasonable under the facts and circumstances of this case.
III.
B & D contends the district court erred in granting North American’s and St. Paul’s Motion to Dismiss for Improper Ven
The interpretation of the Miller Act’s venue provision in relation to a forum selection clause is an issue of first impression in the Tenth Circuit. Congress enacted the Miller Act to protect persons who supply labor and materials for the construction of federal buildings. Due to its remedial nature it is afforded a liberal construction. United States ex rel. Sherman v. Carter, 353 U.S. 210, 216,
Although the language of the Miller Act, 40 U.S.C. § 270b(b), requiring that suits be brought in the judicial district where the contract was performed “and not elsewhere” seems to mandate strict conformance, judicial interpretation holds otherwise. While dealing with the merits of another issue, the Supreme Court characterized § 270b(b) as being “merely a venue requirement.” F.D. Rich Co. v. United States ex rel. Industrial Lumber Co.,
Three circuits have addressed forum selection clauses that conflict with the Miller Act’s venue provisions. All three have held that as a mere venue requirement, § 270b(b) is subject to contractual waiver by a valid forum selection clause. See FGS Constructors, Inc. v. Carlow,
We are persuaded by our sister circuits and agree that a valid forum selection clause supersedes the Miller Act’s venue provision. This case thus turns on whether the forum selection clause at issue is valid. To interpret a contract we “must give a written agreement that interpretation which was intended by the parties.” Ader v. Hughes,
Although parties are able to contractually alter the Miller Act’s venue provisions, they are not able to change its jurisdictional requirements. As Justice Frankfurter stated in Neirbo Co. v. Bethlehem Shipbuilding Corp.,
The jurisdiction of the federal courts— their power to adjudicate — is a grant of authority to them by Congress and thus beyond the scope of litigants to confer. But the locality of a lawsuit — the place where judicial authority may be exercised — though defined by legislation re*1118 lates to the convenience of litigants and as such is subject to their disposition.
Id. at 167-68,
Because the forum selection clause is invalid, the Miller Act’s venue provisions prevail and this case must be brought in the United States District Court for the Western District of Oklahoma, the federal district where the contract was to be performed.
The invalidity of the forum selection clause renders B & D’s other assertions moot.
Our reversal of the district court’s dismissal for improper venue renders North American’s and St. Paul’s cross-appeal moot. As they are no longer the “prevailing parties” within the meaning of the attorney fee provision or the subcontract on this issue, they are clearly not entitled to attorney’s fees regardless of any contractual interpretation.
IV.
We find the forum selection clause to be an invalid waiver of the Miller Act’s venue provisions. The district court’s judgment is REVERSED and this case is REMANDED to the district court for a trial on the merits.
Our holding renders North American’s and St. Paul’s cross-appeal moot.
