This article highlights practical ways owners, general contractors, and subcontractors can account for the agency doctrine in both contract drafting and dispute resolution.
Arbitration is a fundamental component of modern construction contracting. Many in the industry recognize the potential benefits and protections arbitration can provide to the business in the event of a dispute. But an important question many contracts do not address is: who does the arbitration agreement cover? Does it include the business entity only, or the individuals acting on behalf of the entity?
As courts have long recognized, entities can generally only act through their employees, representatives, or agents.[1] This article discusses the circumstances in which an agent may rely on an arbitration provision entered by its employer. This is known as the agency doctrine.
Reprinted courtesy of Jordan Heath, Associate, Jones Walker LLP and Jacob Morrison, Law Student University of Georgia, Jones Walker LLP
Mr. Heath may be contacted at jheath@joneswalker.com