Opinion ID: 2508401
Heading Depth: 4
Heading Rank: 1

Heading: Utah's public policy regarding venue in construction litigation

Text: ¶ 27 Teton argues that Utah's public policy regarding the proper venue to resolve construction contract disputes dictates that the present case should be litigated in Wyoming. In support of this contention, Teton cites section 13-8-3(2) of the Utah Code, which declares unenforceable any forum selection clause contained in a construction contract that requires litigation in a state other than Utah when one of the parties to the contract is a Utah resident and the agreement relates to a construction project in Utah. Utah Code Ann. § 13-8-3(2) (2001). Teton argues that this statute codifies a more general Utah public policy declaring that construction disputes should be litigated in the state in which the project is located. Because the Project in the present dispute is located in Wyoming, Teton argues that Utah courts should refuse to hear the present case. ¶ 28 Teton's argument is not persuasive. The primary purpose of section 13-8-3 is to prohibit out-of-state contractors, construction managers, or suppliers from haling a Utah resident into a foreign state's court when the work by the Utah resident is performed within the State of Utah. The statute furthers Utah's policy interest in providing its residents with a forum in which they can pursue their legal claims. See Utah Code Ann. § 78-27-22 (2002); Trillium, 2001 UT 101 at ¶ 20, 37 P.3d 1093. Therefore, contrary to Teton's assertions, the policy expressed by section 13-8-3 would be best served by enforcing the forum selection clause at issue in this case and allowing Jacobsen to litigate its claims in its home state.