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Court Equates Mediation With Arbitration Under Faa

Monday, April 11, 2011 11:00 am

 

Alternative Dispute Resolution

U.S., ex rel. Thyssenkrupp Safway, Inc. v. Tessa Structures, LLC, et al, 2011 U.S. Dist. Lexis 1119 (D. Va. Feb. 4, 2011)

Most courts consider a contract provision providing for mediation the same as one providing for arbitration.

The dispute in this case arose when Thyssenkrupp Safway, Inc. (TSI), a supplier of scaffolding to a restoration project at the FBI Academy in Quantico, Virginia, went unpaid. First, TSI brought suit against the subcontractor who hired it, Tessa Structure (Tessa), as well as the prime contractor, Vista Contracting, Inc. (Vista) and the surety that provided Vista's Miller Act payment bond. Then, Tessa filed a cross-claim against Vista for contract breach, indemnification and contribution.

In court, Vista argued that the cross-claim should be dismissed since the Vista-Tessa subcontract required the sub to seek mediation and arbitration to resolve any claims arising out of the subcontract before filing suit. The court agreed tha [...]

 
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