News & Analysis as of

Construction Contracts Arbitration Agreements

My Roof, My Rules: Arbitrators May Determine Their Own Jurisdiction When the Parties Delegate that Authority

An issue that repeatedly comes up in construction disputes is the scope of an arbitration agreement. Courts generally interpret agreements to arbitrate broadly, and, where the arbitrability of a specific claim has been at...more

London Court Upholds Arbitral Award In Contractor Dispute In Face Of Challenge That Arbitral Panel Failed To Consider Coverage...

by Carlton Fields on

A court in London recently upheld an arbitral award in the face of claims that the arbitral panel failed to consider several coverage defenses one party asserted during the proceedings. The arbitration arose from a dispute...more

Michigan Appellate Court Rules That, Absent Proof of Prejudice, Defendant’s Filing of a Cross-Complaint Does Not Constitute a...

by Pepper Hamilton LLP on

Universal Acad. v. Berkshire Dev., 2017 Mich. App. LEXIS 975 (Ct. App. June 20, 2017) - The dispute arose out of an agreement between Universal Academy (“Universal”) and Berkshire Development (“Berkshire”), under which...more

No Privity? No Problem!

by Farrell Fritz, P.C. on

May a stranger to an arbitration agreement compel arbitration against its signatories? According to the Second Department in Degraw Construction Group v McGowan Builders, Inc., 2017 NY Slip Op 05580 (2nd Dept July 12, 2017),...more

Construction Contracts And Arbitration Provisions: Is The Word “May” Mandatory? Maybe!

by Burr & Forman on

You don’t always say what you mean. And you don’t always mean what you say. In construction contracts, parties attempt to use plain and ordinary words to describe their respective obligations....more

Ninth Circuit Finds Incorporation Of ICC Rules Into Arbitration Agreement Constitutes Clear And Unmistakable Evidence Of...

by Carlton Fields on

In a case involving three related contracts, only one of which contained an arbitration agreement, the Ninth Circuit has held that incorporation of the rules of the International Chamber of Commerce (ICC) into an arbitration...more

Federal Circuit Affirms Finding Of Non-Arbitrability Under “Wholly Groundless” Standard

by Carlton Fields on

Stephen Evans, doing business as Roof n’ Box, Inc. (“RNB”), had a contract with Building Materials Corp. of America, (“BMCA”) to promote RNB’s “Roof N Box” product, a three-dimensional roofing model, to building-construction...more

Drafting Arbitration Clauses in Construction Contracts

by JAMS on

Many construction lawyers who specialize in transactional work acknowledge that they do not spend much time considering or negotiating the arbitration clauses in construction contracts. Should an arbitration clause be just a...more

Proposed New Jersey Law Takes Aim at Mandatory Arbitration

Assembly Bill A-3064, which the New Jersey Assembly passed on October 20, 2016, will come up for consideration in the Senate this year. If the Senate passes and the Governor signs A-3064, no company that wants to do business...more

Arbitration Clause Requiring Arbitrators to Render a Decision within 30 Days from Their Appointment? Superfast Decision?

Ever wonder about a superfast arbitration procedure in a contract that you have been given? An arbitration clause requiring an arbitration panel to issue a decision within 30 days of being selected for the panel was recently...more

Federal Court in North Carolina Holds That Impracticability of Arbitration Clause Which Required Decision Within 30 Days of...

by Pepper Hamilton LLP on

Tribal Casino Gaming Enterprise v. W.G. Yates & Sons Constr. Co., 2016 U.S. Dist. LEXIS 86100 (W.D. NC July 1, 2016) - Tribal Casino Gaming Enterprise (the “Casino”) contracted with joint general contractors, W.G. Yates...more

South Carolina Supreme Court Decision Impacts Enforceability of Arbitration Provisions in New Residential Construction Sales...

On July 6, 2016, the South Carolina Supreme Court filed its Opinion No. 27645, captioned Smith v. D.R. Horton, Inc., in which it affirmed the Court of Appeals' refusal to compel arbitration between new home purchasers and the...more

New Rules Make Construction Arbitration More Attractive

The American Arbitration Association (AAA) implemented new Construction Industry Arbitration Rules this past summer. The changes eliminate certain gaps or ambiguities in the old rules, create some additional tools with which...more

AAA Revises Construction Industry Arbitration Rules and Mediation Procedures

The American Arbitration Association (AAA) has revised its Construction Industry Arbitration Rules and Mediation Procedures (Rules), effective July 1, 2015. Although some changes are relatively modest, others expand the...more

Significant Changes to AAA's Construction Arbitration Rules Effective July 1, 2015

by Jaburg Wilk on

The American Arbitration Association (AAA) recently issued several significant revisions to its Construction Industry Arbitration Rules, which became effective July 1, 2015. The revised rules apply to construction arbitration...more

Should You Cut The Delegation Clause From Your Arbitration Agreement?

A recent report showed that less than half of arbitration agreements in the consumer financial arena include delegation clauses in their arbitration agreements. Two recent decisions from state high courts suggest that is a...more

Court Remands Arbitration Award For Further Clarification Where Rationale Was Not Given

by Carlton Fields on

In a case involving a dispute over steel production to replace a portion of the Whitestone Bridge spanning New York City’s East River, a federal district court remanded an arbitration award back to the arbitrator. Under the...more

Hawaii Finds Unilateral Arbitrator-Selection Provision Fundamentally Unfair

The Supreme Court of Hawai’i concluded last week that it is fundamentally unfair to allow one party to an arbitration agreement to unilaterally select the arbitral forum. Nishimura v. Gentry Homes, Ltd., __ P.3d__, 2014 WL...more

Maryland Court of Appeals Limits Right to Appeal Denial of Petition to Compel Arbitration

by Baker Donelson on

Private construction contracts routinely include arbitration clauses to ensure that disputes that arise from a project are resolved by a technically skilled arbitrator. Questions may arise, however, about whether an...more

“Just ‘Cause I Said It, Don’t Mean That I Meant It” – Not When it Comes to Construction Contracts

In HM DG, Inc. v. Amini, Case No. B242540 (September 20, 2013), general contractor HM DG, Inc. (“HMDG”) sued homeowners Farzad Etemad Amini and Pouneh Beizai in the Superior Court after they weren’t paid. One...more

Arbitration vs. Bench Trial

by Gray Reed & McGraw on

Arbitration clauses are very common in contracts in the construction and energy industries. Many industry players reflexively insist on arbitration despite its pitfalls. ...more

The Expansive Breadth and Scope of Arizona’s New Revised Uniform Arbitration Act

by Snell & Wilmer on

Recently, the Arizona Court of Appeals determined that under the 2010 Arizona Revised Uniform Arbitration Act, A.R.S. §12-3001, et seq. (the AZ-RUAA), a contractual agreement to arbitrate extends to: (i) arbitration of claims...more

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