The general contractor and surety filed additional pleadings in the earlier-initiated court case, seeking full dismissal based upon the passage of five years since the school board’s claims became exigible.
A Louisiana school board filed suit in court in 2018 on a construction project but was rebuffed based upon arguments by the general contractor and surety defendants. Those defendants asserted that the court filings were premature, based upon an arbitration clause in the general contract. The trial court agreed and stayed the litigation, “pending completion of arbitration.”
Arbitration was never filed. Interestingly, within the arbitration clause, the following language existed: “For statute of limitations purposes, receipt of written demand for arbitration shall constitute the institution of legal or equitable proceedings based upon the Claim.”
Mr. Lund may be contacted at daniel.lund@phelps.com