Construction Litigation Roundup: “It’s One, Two… Eight Strikes: You’re Out!”

Ball striking pins

No fewer than eight different theories for keeping the insurers in the arbitration were considered and rejected by the federal court.

May 28, 2024
Daniel Lund III - Lexology

In a matter handled by this writer and the Phelps firm for various insurance companies, the insurers sought to be extricated from a $51,000,000+ arbitration and prevailed, securing a preliminary injunction from a federal district court in New Orleans.

The dispute centers on the contract between the designer for the new terminal facility at the Louis Armstrong New Orleans International Airport and a claim by the airport board against the designer team as well as the insurers for the designers.

The principal design contract – to which the insurers were not parties – contains an arbitration clause. The airport board initiated an American Arbitration Association arbitration against the designers and their insurers, and the insurers sought relief from the court.

Mr. Lund may be contacted at daniel.lund@phelps.com



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