Keystone Masonry, Inc. v. GARCO CONST.

147 P.3d 610
CourtCourt of Appeals of Washington
DecidedNovember 7, 2006
Docket34174-3-II
StatusPublished
Cited by23 cases

This text of 147 P.3d 610 (Keystone Masonry, Inc. v. GARCO CONST.) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Keystone Masonry, Inc. v. GARCO CONST., 147 P.3d 610 (Wash. Ct. App. 2006).

Opinion

147 P.3d 610 (2006)

KEYSTONE MASONRY, INC., Respondent,
v.
GARCO CONSTRUCTION, INC., a Washington corporation; Travelers Casualty & Surety Company, a domestic/foreign insurance company; Travelers Casualty & Surety Company Of America, a domestic/foreign company, Petitioners,
Sumner School District # 320, a municipal school district, Defendant.

No. 34174-3-II.

Court of Appeals of Washington, Division 2.

November 7, 2006.

*612 William M. Symmes, Ryan Marshall Beaudoin, Witherspoon Kelley Davenport & Toole PS, Spokane, WA, for Petitioners.

Randal Scott Thiel, Chelsey A Torgerson-westfall, Chism Thiel McCafferty Campbell & Steinm, Seattle, WA, for Respondent.

QUINN-BRINTNALL, C.J.

¶ 1 Keystone Masonry, Inc. filed a breach of contract claim in Pierce County Superior Court against Garco Construction, Inc., Travelers Casualty & Surety Company, Travelers Casualty & Surety Company of America, and Sumner School District No. 320. Garco and Travelers moved to change venue from Pierce County to Spokane County. The trial court denied Garco and Travelers' motion for change of venue and they appeal. Because the forum selection clause in Garco's subcontract with Keystone set venue for such a lawsuit in Spokane County, we reverse and grant to Garco and Travelers attorney fees and costs under RCW 4.12.090 and RAP 18.1.

FACTS

¶ 2 Garco was the general contractor for the construction of Bonney Lake High School for Sumner School District No. 320, located in Pierce County. Garco subcontracted with Keystone for the school's masonry work. Travelers bonded the project for Garco. Garco's principal place of business is Spokane.

¶ 3 Keystone filed this lawsuit in Pierce County, alleging that Garco breached the subcontract. Keystone also filed notice of a claim against Travelers' contractor's bond under chapter 39.08 RCW, and notice of a claim under chapter 60.28 RCW against the retained percentage held by the School District.

¶ 4 Garco sent two letters to Keystone asking that it consent to a change of venue to Spokane County. Keystone did not respond, so Garco and Travelers jointly moved to change venue. They based this motion on a forum selection clause in the subcontract between Garco and Keystone which read:

This Subcontract shall be considered to have been made in and shall be interpreted under the laws of the State of WASHINGTON. The site of any arbitration or venue of any lawsuit arising out of this Subcontract or the work hereunder shall be at SPOKANE County, WASHINGTON.

Clerk's Papers at 27. Keystone objected to a change of venue and asserted that: (1) Garco was violating the public policy against forum shopping; (2) under the doctrine of forum non conveniens, venue should remain in Pierce County because at least 19 witnesses were located there; and (3) RCW 60.28.030 requires that an action to foreclose a lien on the retainage percentage held in the reserve fund be brought in the county where the lien is filed. Other than the public policy argument, Keystone did not allege an infirmity with the contract itself.

¶ 5 The Pierce County Superior Court denied Garco and Travelers' motion to change venue to Spokane County and also denied Garco and Travelers attorney fees.

¶ 6 We granted Garco and Travelers' motion for discretionary review to address two issues: First, whether the forum selection provision of the Garco and Keystone contract is enforceable. And second, if so, are Garco and Travelers entitled to attorney fees for having to go to court to obtain benefit of the forum selection provision?

¶ 7 Because the parties disagree, we must also address the applicable standard of review.

*613 ANALYSIS

STANDARD OF REVIEW

¶ 8 The parties dispute the standard of review. Garco and Travelers argue that this appeal involves the interpretation of a contract and that the appropriate standard of review is de novo. Keystone asserts that this appeal involves the trial court's denial of a motion for change of venue and that the appropriate standard of review is manifest abuse of discretion. Garco and Travelers are correct.

¶ 9 Absent disputed facts, the legal effect of a contract is a question of law that we review de novo. Yeats v. Estate of Yeats, 90 Wash.2d 201, 204, 580 P.2d 617 (1978). Here, the trial court entered no findings and the parties presented no disputed facts. Thus, we review the Garco and Keystone contract de novo. In addition, to the extent that Keystone's argument relies on the application of venue statutes, our review of statutory construction is likewise de novo. Berrocal v. Fernandez, 155 Wash.2d 585, 590, 121 P.3d 82 (2005). Thus, we hold that when there are no disputed facts, the proper standard of review of the application of a contract's forum selection clause is de novo.

VENUE

¶ 10 Keystone asserts three arguments why the trial court correctly ruled that venue properly rests in Pierce County, despite the subcontract's forum selection clause: (1) the forum selection clause is void as contrary to public policy; (2) the doctrine of forum non conveniens mandates, or at least allows, venue in Pierce County; and (3) the venue provision in the public works lien statute, RCW 60.28.030, requires Keystone to bring its retainage action in Pierce County.

PUBLIC POLICY

¶ 11 Keystone asserts that the forum selection clause in its subcontract with Garco is void as against public policy. We disagree.

¶ 12 A contract provision is void as contrary to public policy if it seriously offends law or public policy. In re Marriage of Hammack, 114 Wash.App. 805, 810-11, 60 P.3d 663, review denied, 149 Wash.2d 1033, 75 P.3d 968 (2003). By enacting RCW 4.12.080,[1] the legislature specifically approved forum selection clauses by mandating that such agreements will determine venue, even if grounds exist to locate the forum elsewhere. RCW 4.12.080; and see RCW 4.12.030. And we have stated "[p]articularly in the commercial context, the enforcement of forum selection clauses serves the salutary purpose of enhancing contractual predictability." Voicelink Data Servs. v. Datapulse, Inc., 86 Wash.App. 613, 617, 937 P.2d 1158 (1997). Our Supreme Court also announced that "the policy of this state is that, if the parties agree to a venue for a suit, the trial court cannot allow the suit to be brought in any county other than the one agreed on by the parties." Mangham v. Gold Seal Chinchillas, Inc., 69 Wash.2d 37, 45, 416 P.2d 680 (1966).

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Bluebook (online)
147 P.3d 610, Counsel Stack Legal Research, https://law.counselstack.com/opinion/keystone-masonry-inc-v-garco-const-washctapp-2006.