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Limits On Clarification Of An Arbitration Award

Wednesday, March 04, 2009 05:12 pm

Limits On Clarification Of An Arbitration Award Arbitration Eastern Seaboard Construction Co., Inc. v. Gray Construction, Inc. U.S.Court of Appeals for the First Circuit 2008 U.S.App.Lexis 26803(Dec.31, 2008)

An arbitrator can change an award to reflect omissions, such as outstanding contract balances or back pay, without conducting a new hearing because such changes are clerical, not substantive.

Eastern Seaboard Concrete Construction Company (Eastern)subcontracted with Gray Construction (Gray) to complete a construction project at the Portsmouth Naval Shipyard in Kittery, Maine.Eastern encountered unexpected conditions that increased the scope of the project and resulted in delays.The Navy refused to pay Gray for the extra work and Gray then refused to pay Eastern.Eastern left thejob, returned, and then was fired.Gray hired a new subcontractor to finish thejob.Later, Eastern filed a claim against Gray in federal district court, but the parties went to arbitration because of an arbitration clause in their contract.They agreed that the American Arbitration Association's Construction Industry Arbitration Rules and Mediation Procedures(AAA Rules)would app [...]

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