Ninth Circuit Finds Arbitration Award Is ‘Irrational’ Because It Disregards the Contract’s Plain Text Simply to Reach a Just Result

Aspic Eng’g & Constr. Co. v. ECC Centcom Constructors LLC, No. 17-16510, 2019 BL 26363 (9th Cir. Jan. 28, 2019)

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Ryan R. Deroo

Aspic Engineering and Construction Company (“Aspic”), a local Afghan subcontractor, entered into multiple subcontracts with ECC Centcom Constructors and ECC International (“ECC”), the prime contractor, to construct buildings and facilities in Afghanistan.  The subcontracts contained terms and conditions “applicable to all U.S. Government subcontracts,” and mandated that Aspic owed ECC the same obligations that ECC owed to the federal government.  The subcontracts also incorporated multiple Federal Acquisition Regulation (“FAR”) clauses, including FAR 49.2 through 49.6, which govern the recovery of expenses in the event a contractor is terminated for convenience, i.e. required documentation and procedures.

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DC Court Holds that Authority’s Consideration Of Contractor’s Claim on Merits Raises Issue of Fact as to Waiver of Late Notice Defense

TRG Construction, Inc. v. District of Columbia Water & Sewer Authority
2013 D.C. App. LEXIS 257 (May 9, 2013)

Appellant, TRG Construction, Inc. (“TRG”), was hired by the District of Columbia Water and Sewer Authority (“D.C. Water”) to renovate bathrooms at D.C. Water’s central operations facility. When TRG initially contracted with D.C. Water it agreed to complete the bathroom renovations by June 13, 2004. The project suffered delays, however, and the deadline for completion was extended to July 31, 2005. Before that deadline, TRG requested another extension. D.C. Water declined to grant the request. Shortly thereafter, D.C. Water sent TRG a cure notice detailing several alleged deficiencies in TRG’s work. TRG declined to fix the problems asserting that its work was not defective. On September 2, 2005, D.C. Water terminated TRG’s contract for convenience.

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