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When a contract requires the architect to determine whether a claim should go to arbitration, the court cannot compel arbitration, according to a New York appellate court.
In Lopez v. 14th Street Development, LLC, 2007 N.Y. Slip Op. 04027, 2007 WL 1364665 (N.Y.A.D May 10, 2007), construction worker Lopez sued the owners of the condominium unit where he was injured. The owners brought a third-party indemnification claim against contractor Kelleran. Kelleran moved to compel arbitration under the construction contract.
The Court stated that the contract required submission of claims to the architect as a condition precedent to arbitration. Moreover, the architect's role was limited to claims submitted prior to final payment, while this dispute arose after the work's completion.
The contract contained no provisions mandating arbitration for claims that arose after completion of the work. The Court stated, under the contract, "arbitration is expressly limited to claims that are either decided by the architect or remain undecided for 30 days following submission to her."
The Court refused to compel arbitration because the arbitration agreement was inapplicable and the dispute was subject to judicial resolution.
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