TITLE

CONSTRUCTION--APPEALABLE ORDERS--ARBITRABILITY--GOVERNING LAW--FEDERAL JURISDICTION

PUB. DATE
June 1983
SOURCE
Arbitration Journal;Jun83, Vol. 38 Issue 2, p77
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
The article presents information on a U.S. court judgment in the case "Moses H. Cone Memorial Hospital versus Mercury Construction Corp." According to the decision, the District Court abused its discretion in granting a stay of the federal court proceedings pending resolution of the issue of arbitrability in the state court, and the stay order was appealable. Moses H. Cone Memorial Hospital contracted with Mercury to construct additions to the hospital building. The contract provided a two-step dispute resolution procedure, disputes were first to be referred to the architect for decision, but then could be submitted for arbitration under a broad clause providing for resolution under the American Arbitration Association's Construction Industry Arbitration Rules. Certain disputes arose involving delay and impact costs, and the architect recommended that Mercury withhold the claims until construction was substantially completed. Mercury agreed, and submitted the claims to the architect more than two years later. Discussions continued between the architect and Mercury, resulting in a significant reduction of Mercury's claims. The hospital denied having any knowledge of Mercury's claims prior to completion of the project, although its representatives were present when Mercury originally agreed to withhold its claims. The hospital therefore filed a declaratory action in North Carolina state court .
ACCESSION #
17293738

 

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