2021 New Mexico Statutes
Chapter 57 - Trade Practices and Regulations
Article 28A - Construction Contracts
Section 57-28A-1 - Construction contracts; provisions void.
A. A provision of a construction contract, agreement, understanding, specification or other documentation that is made part of a construction contract for an improvement to real property in New Mexico is void, unenforceable and against the public policy of the state if the provision:
(1) makes the construction contract subject to the laws of another state; or
(2) requires any litigation arising from the construction contract to be conducted in another state.
B. Any mediation, arbitration or other dispute resolution proceeding arising from or relating to a construction contract for work performed in this state shall be conducted in this state.
C. As used in this section, "construction contract" means a public, private, foreign or domestic contract or agreement relating to construction, alteration, repair or maintenance of any real property in New Mexico and includes agreements for architectural services, demolition, design services, development, engineering services, excavation or other improvement to real property, including buildings, shafts, wells and structures, whether on, above or under real property.
History: Laws 2011, ch. 28, § 1.
ANNOTATIONSEffective dates. — Laws 2011, ch. 28, § 3 made Laws 2011, ch. 28, § 1 effective July 1, 2011.
Applicability. — Laws 2011, ch. 28, § 2 provided that the provisions of Laws 2011, ch. 28, § 1 apply to contracts entered into on or after July 1, 2011.
Statute inapplicable to franchise agreement. — Where plaintiff, a hotel franchisee, brought an action against the franchisor, alleging that the franchisor fraudulently induced plaintiff into entering into a franchise agreement, and where the franchisor moved to transfer the action to another state pursuant to a forum selection clause in the franchise agreement, and where plaintiff argued that 57-28A-1 NMSA 1978 voided forum selection clauses in construction contracts, the court upheld the franchise agreement's forum selection clause, holding that this section prohibits forum selection clauses in construction contracts, but the franchise agreement in this case was not a construction contract. The franchise agreement, which gave plaintiff the license to use registered trademarks, trade names and service marks, was characterized as a license agreement and not a contractor agreement, and therefore this section did not void the forum selection clause in the franchise agreement. Presidential Hospitality, LLC v. Wyndham Hotel Group, LLC, 333 F. Supp.3d 1179 (D. N.M. 2018).
