A & A Mechanical, Inc. v. Satterfield & Pontikes Construction Group, LLC
83 So. 3d 363
La. Ct. App.2012Background
- A & A Mechanical, Inc. sues Satterfield & Pontikes Construction Group, L.L.C. and Chris Head for unpaid work and related misconduct at L.B. Landry High School project.
- The subcontract requires mediation then binding arbitration for disputes relating to the subcontract.
- A & A alleged kickback demands by Head, retaliation, and various project impediments by S&P.
- S&P unsuccessfully moved to prematurity and referred the entire matter to arbitration; trial court dismissed all claims without prejudice.
- A & A argues the arbitration clause is narrow and does not cover torts, kickbacks, or vicarious liability; some claims must stay in state court.
- The appellate court reverses the dismissal and remands to allow non-arbitrable claims to proceed in state court.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the dispute falls within the arbitration scope | A&A argues tort and kickback claims fall outside the subcontract arbitration. | S&P argues all related disputes fall within arbitration. | Partial: breach claims may go to arbitration; non-arbitrable claims must proceed in court. |
| Whether A&A could be compelled to arbitrate against Head individually | There was no written agreement between A&A and Head to arbitrate | Arbitration clause could extend via contract to Head’s actions | Error to compel arbitration against Head individually. |
| Whether vicarious liability and tort claims against S&P were within scope | Tort claims and vicarious liability were outside the subcontract scope | Arbitration clause broad enough to cover related disputes | Arbitration not required for tort and vicarious liability claims; must proceed in court. |
Key Cases Cited
- AT&T Technologies, Inc. v. Communications Workers of America, 475 U.S. 643 (U.S. 1986) (arbitration as a matter of contract; duty to arbitrate rests on contract)
- Southland Corp. v. Keating, 465 U.S. 1 (U.S. 1984) (FAA preempts state rules; arbitration enforceable under federal law)
- Collins v. Prudential Ins. Co. of Am., 752 So.2d 825 (La. 2000) (scope of arbitration; two-step review if agreement exists and dispute falls within scope)
- Bolden v. FedEx Ground Package Sys., Inc., 60 So.3d 679 (La.App. 4 Cir. 2011) (appealability of arbitration-related judgments; distinguish from partial stays)
- Saavedra v. Dealmaker Developments, LLC, 8 So.3d 758 (La.App. 4 Cir. 2009) (broad arbitration clause includes claims arising out of contract; torts may be encompassed)
- Snyder v. Belmont Homes, Inc., 899 So.2d 57 (La.App. 1 Cir. 2005) (broad vs. narrow arbitration clauses; scope depends on contract relation)