Tuesday, September 22, 2009

County Glass: Interwoven Claims Can Put Litigation on Hold During Arbitration

Reviewed September 7, 2026.

Different dispute-resolution clauses on the same project can affect the sequence of a payment case. In County Glass & Metal Installers, Inc. v. Pavarini McGovern, LLC, 65 AD3d 940 (1st Dept 2009), a curtain-wall installer agreed separately to arbitrate disputes with the manufacturer.

After the owner and construction manager withheld payment and alleged leaks, the installer filed a lien and sued. The installer added the manufacturer after the owner and construction manager asserted defect counterclaims. The appellate court upheld a stay of the litigation and compelled arbitration of the installer’s dispute with the manufacturer.

Why the sequence mattered

The arbitrable and nonarbitrable issues were closely intertwined. Deciding whether the curtain wall was defective could simplify the remaining installation, payment and delay issues and reduce the risk of inconsistent results.

The decision does not require every lawsuit involving any arbitrable claim to stop. The agreements, issues and relationships between the parties matter. At contract formation, coordinate dispute provisions across the owner agreement, subcontract and supply contract. Once a dispute arises, evaluate joinder, stays, evidence and limitation periods together. Do not assume arbitration automatically preserves lien, bond or court-filing deadlines.

Kushnick Pallaci PLLC assists clients throughout New York with construction arbitration and coordinated dispute resolution. Contact 631-752-7100 or vtp@kushnicklaw.com.

Attorney Advertising. General information, not legal advice.

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