Division 2: Contract Venue Clause Trumps Retainage Statute
In a case of first impression, Division 2 has held that the venue rule in the retainage statute -- which states that a suit to foreclose a lien against the project retainage shall be brought in the county where the lien is filed (RCW 60.28.030) -- gives way to the forum selection clause in a subcontract.
The case arose out of a Pierce County project and the subcontractor filed suit there to foreclose its retainage lien against the surety and general contractor (Garco). But in the subcontract, Garco had provided for all dispute resolution to occur in Spokane. The trial court denied Garco's motion to transfer venue to Spokane. Reversing, the Court of Appeals held the venue rule in the statute could be waived -- and that it was waived here by inclusoin of the Spokane venue clause.
The Court of Appeals also turned away the subcontractor's claims that enforcement of the Spokane venue would be contrary to "public policy" or that Pierce County venue should be retained under the doctrine of forum non conveniens.
