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Equitable Estoppelallows A Nonsignatory To Compel Arbitration

Tuesday, November 01, 2011 08:00 am

 

Arbitration - Incorporation by Reference

Hartford Fire Ins. Co. v. Henry Bros. Constr. Manag. Svs., LLC, 2011 U.S. Dist. Lexis 88718 (D. Ill. Aug. 10, 2011)

There was no arbitration agreement between a contractor and a sub's surety despite the performance bond's incorporation of the subcontract's arbitration clause.

Henry Brothers Construction Management Services, LLC (Henry) contracted with the Northfield Township High School District (District) to perform construction management services at a high school in Glenveiw, Illinois. Henry hired electrical subcontractor Grace Electrical Construction Corporation (Grace). During the project, Grace defaulted and a dispute arose over payment between Henry and Grace's performance bond surety, Hartford Fire Insurance Company (Hartford). Henry opposed Hartford's complaints, alleging that the surety was required to arbitrate its claims. The question here boiled down to whether a contract containing an arbitration provision existed between the parties. The answer was "no."

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