{"id":890786,"date":"2016-08-24T10:41:46","date_gmt":"2016-08-24T16:41:46","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=890786"},"modified":"2016-08-24T10:41:46","modified_gmt":"2016-08-24T16:41:46","slug":"is-30-days-enough-time-to-fully-arbitrate-and-issue-an-award-for-a-claim-on-a-partial-parking-garage-collapse-federal-court-says-let-the-arbitrator-decide","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/is-30-days-enough-time-to-fully-arbitrate-and-issue-an-award-for-a-claim-on-a-partial-parking-garage-collapse-federal-court-says-let-the-arbitrator-decide\/","title":{"rendered":"Is 30 Days Enough Time to Fully Arbitrate and Issue an Award for a Claim on a Partial Parking Garage Collapse? Federal Court Says Let the Arbitrator Decide"},"content":{"rendered":"<p>Brendan Carter | <a href=\"http:\/\/abaconstructionforumdivision1.blogspot.com\/2016\/08\/is-30-days-enough-time-to-fully.html?utm_source=feedburner&amp;utm_medium=email&amp;utm_campaign=Feed%3A+TheDisputeResolver+%28The+Dispute+Resolver%29\" target=\"_blank\">The Dispute Revolver<\/a> | August 12, 2016<\/p>\n<p><img decoding=\"async\" class=\"alignleft\" src=\"https:\/\/3.bp.blogspot.com\/-Dp75CEQALgA\/V6276T6p0JI\/AAAAAAAAABU\/Qi1B3xNaPEwzof3NUG0TsRiy6WotxdRVwCLcB\/s320\/6778681_G.jpg\" \/>The plaintiff in <u>Tribal Casino Gaming Enterprise v. W.G. Yates &amp; Sons Construction Company et al<\/u>\u00a0entered into a contract for the expansion of an existing facility at Harrah\u2019s Cherokee Casino in Cherokee, North Carolina with defendants in April of 2008.\u00a0 The project included the construction of two parking structures, one, an eight level 2,300 space facility and the other a six level, 1,200 space facility connected to the hotel structure.\u00a0 Defendant then contracted with its co-defendant to furnish and erect the precast parking garages. An <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-201-drafting-the-arbitration-clause-for-the-arbitration-you-want\/\" target=\"_blank\">arbitration clause<\/a> contained within the prime contract stated in part that:<\/p>\n<blockquote><p>\u201cAny controversy or claim arising out of or relating to this\u00a0 Agreement shall\u2026be settled by binding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association\u2026The parties agree that the only grounds for appeal of any arbitration award\u2026shall be&#8230;where the arbitrators were guilty of misconduct in refusing to postpone the hearing, upon sufficient cause shown, or in refusing to hear evidence pertinent and material to the controversy, or any other misbehavior by which the rights of any party have been prejudiced\u2026The arbitration panel shall be required to render a decision within thirty (30) days after being notified of their selection.\u201d<\/p><\/blockquote>\n<p>In February of 2015, a ramp located in the hotel parking garage <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/more-common-sense-coverage-for-collapse-requires-more-than-an-engineers-finding-of-substantial-impairment\/\" target=\"_blank\">partially collapsed<\/a> and the plaintiffs filed suit in February 2016 for damages related to breach of contract, breach of warranty, negligence, gross negligence, and unfair and deceptive trade practices. Plaintiff also filed a demand for arbitration with the AAA at that time.\u00a0 In May 2016, plaintiff filed a motion to stay pending arbitration and to compel arbitration, and then chose its designated arbitrator. This gave the defendants fifteen days to designate its arbitrator, and then gave those arbitrators fifteen days to select the third member of the panel, with a final decision having to be rendered thirty days later.\u00a0 Defendants jointly filed a motion to stay the arbitration.<\/p>\n<p>The Court began its analysis by presenting the plaintiff\u2019s argument that the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/whats-in-a-name-defining-arbitration-across-the-circuits\/\" target=\"_blank\">arbitration<\/a> is enforceable against the defendant based upon the Federal Arbitration Act and the North Carolina Revised Uniform Arbitration Act.\u00a0 In turn, the defendants do not challenge the validity of the contract, but \u201ccontend that [plaintiff\u2019s] claim falls outside the scope of the arbitration clause, or alternatively, that the arbitration clause itself is unenforceable due to its unreasonably short time period within which the arbitration panel must render a decision.\u201d The Court next proceeds to examine if the claim itself is arbitrable.<\/p>\n<p>In order to determine whether the claim itself is arbitrable, the Court begins by pointing to the fact that the contract was signed in 2008. The 2007 AAA\u2019s commercial rules regarding arbitrability read, \u201c&#8221;The arbitrator shall have the power to rule on his or her own jurisdiction, including any objections with respect to the existence, scope or validity of the arbitration agreement.&#8221;\u00a0 The Court contrasts this to the 2013 update which states, \u201c&#8221;The <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/giving-power-to-the-arbitrator-permissible-and-impermissible-delegations-of-power\/\" target=\"_blank\">arbitrator<\/a> shall have the power to rule on his or her own jurisdiction, including any objections with respect to the existence, scope, or <em>validity of the arbitration agreement or <\/em><em>to <\/em><em>the arbitrability <\/em><em>of any claim or counterclaim.&#8221;\u00a0 <\/em>By not incorporating similar language to the AAA\u2019s 2013 rules on arbitrability, the Court finds that it has the jurisdiction by stating, \u201cthe language that the parties actually incorporated into their agreement, however, only delegated the substantive arbitrability issues of existence, scope and validity. As to all other issues of substantive arbitrability, including enforceability, the presumption is not rebutted, and these issues are left for the Court.\u201d<\/p>\n<p>Finding that it had the jurisdiction to rule on the arbitrability of the plaintiffs claim, the Court presented the defendant\u2019s arguments that the clause is unenforceable because of, \u201ccontractual impossibility due to unreasonable time constraints, or constitutional invalidity based upon due process and fundamental fairness.\u201d The court does agree with the defendant that allowing an arbitration panel thirty days to review and assess liability for a partial-collapse of a parking garage years after the project was completed \u201cwould be a Herculean feat, if not utterly impossible.\u201d But the Court does not find that the arbitration provision is unenforceable.<\/p>\n<p>The Court acknowledged that such a thirty day arbitration clause is desirable and even necessary for mid-construction disputes because some issues arise that would require immediate attention, but the contract\u2019s arbitration clause does consider such issues or claims that are more complex and require an extended period of deliberation. \u201cThe arbitration clause provides that an arbitration award may be vacated for misconduct of the arbitration panel if the panel, upon sufficient cause, (1) refuses to postpone the hearing, or (2) refuses to hear evidence pertinent and material to the controversy.\u201d\u00a0 The Court found that the arbitration panel does possess the power to \u201cextend the date for the final disposition hearing and to set discovery deadlines within that timeframe.\u201d\u00a0 Accordingly, the arbitration clause is not unconscionable, illegal, or unconstitutional, and it does not render the <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/q-is-my-arbitration-provision-enforceable-a-maybe\/\" target=\"_blank\">arbitration provision<\/a> unenforceable.<\/p>\n<p>The Defendant\u2019s motion to hold the arbitration clause unenforceable was denied.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Brendan Carter | The Dispute Revolver | August 12, 2016 The plaintiff in Tribal Casino Gaming Enterprise v. W.G. Yates &amp; Sons Construction Company et al\u00a0entered into a contract for the expansion of an existing facility at Harrah\u2019s Cherokee Casino in Cherokee, North Carolina with defendants in April of 2008.\u00a0 The project included the construction&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/is-30-days-enough-time-to-fully-arbitrate-and-issue-an-award-for-a-claim-on-a-partial-parking-garage-collapse-federal-court-says-let-the-arbitrator-decide\/\">Continue reading <span class=\"screen-reader-text\">Is 30 Days Enough Time to Fully Arbitrate and Issue an Award for a Claim on a Partial Parking Garage Collapse? Federal Court Says Let the Arbitrator Decide<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41,3],"tags":[42,6259,3],"class_list":["post-890786","post","type-post","status-publish","format-standard","hentry","category-arbitration","category-insurance-claims","tag-arbitration-2","tag-arbitration-clause","tag-insurance-claims","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Is 30 Days Enough Time to Fully Arbitrate and Issue an Award for a Claim on a Partial Parking Garage Collapse? 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