diff --git a/src/db/db/dbLayoutToNetlist.cc b/src/db/db/dbLayoutToNetlist.cc
index 2f47d395f..8a7255ae8 100644
--- a/src/db/db/dbLayoutToNetlist.cc
+++ b/src/db/db/dbLayoutToNetlist.cc
@@ -1414,7 +1414,7 @@ get_merged_shapes_of_net (const db::hier_clusters<db::NetShape> &clusters, db::c
       db::PolygonRef::polygon_edge_iterator e = pr.begin_edge ();
       if (! e.at_end ()) {
         //  pick one reference point for the label
-        if (! any_ref && (*e).p1 () < ref) {
+        if (! any_ref || (*e).p1 () < ref) {
           ref = (*e).p1 ();
           any_ref = true;
         }
diff --git a/testdata/drc/drcSimpleTests_au5.gds b/testdata/drc/drcSimpleTests_au5.gds
index e5cca0f9e..3902b4aed 100644
Binary files a/testdata/drc/drcSimpleTests_au5.gds and b/testdata/drc/drcSimpleTests_au5.gds differ