Bigge Crane & Rigging Co. v. Entergy Arkansas, Inc.
2015 Ark. 58 | Supreme Court of Arkansas | 2015
What This Case Means for Subcontractors
Bigge Crane & Rigging, a subcontractor to Siemens, tried to force arbitration of tort claims against Entergy using an arbitration clause from a contract between Entergy and Siemens—a contract Bigge never signed. Arkansas's Supreme Court ruled that subcontractors cannot use arbitration clauses from contracts they're not party to, even if they benefit from the main contract. This means subcontractors need their own arbitration agreements to compel arbitration; they can't piggyback on the prime contractor's deal.
Key Takeaways
- •Get your own arbitration clause in writing with every party you contract with—don't rely on arbitration clauses in contracts between other parties, even if you're doing work under those contracts.
- •Being an 'incidental beneficiary' of a prime contract gives you no right to use that contract's dispute resolution terms; you need direct contractual language.
- •If you want to arbitrate disputes, negotiate it into your own subcontract agreement before work starts, or you may lose the right to arbitration later.
A subcontractor is merely an incidental beneficiary of contracts between prime contractors and owners.
Frequently Asked Question
Can I use the arbitration clause from the prime contractor's contract with the owner to force arbitration of my dispute?
No. Courts treat subcontractors as incidental beneficiaries of prime contracts, not parties to them. You cannot invoke arbitration clauses you didn't sign. Always negotiate your own arbitration clause directly into your subcontract to preserve arbitration rights.
Related Cases
Atlantic Marine Constr. Co. v. United States Dist. Court for Western Dist. of Tex.
Forum-selection clauses in federal contracts are enforced through §1404(a) transfer motions, not §1406(a) dismissals, and must be given controlling weight except in exceptional circumstances.
Texas Natural Resource Conservation Commission v. IT-Davy
Sovereign immunity bars a contractor's breach-of-contract suit against a state agency absent express legislative consent; neither the agency's conduct, contract terms, nor general statutes waive immunity from suit.
Martin K. Eby Construction Company, Inc. v. Dallas Area Rapid Transit
A contractor must exhaust administrative remedies established by a regional transportation authority before pursuing breach of contract claims in court, even when the authority lacks governmental immunity from suit.
General Services Commission v. Little-Tex Insulation Co.
The State does not waive sovereign immunity from breach-of-contract suits by accepting contract benefits; Chapter 2260's administrative procedure is the exclusive remedy for such claims.
Moncharsh v. Heily & Blase
An arbitrator's decision is generally not reviewable for errors of fact or law, with limited exceptions for fraud, corruption, exceeding powers, or procedural unfairness.
Rory v. Continental Insurance
Unambiguous contractual limitations periods in insurance policies must be enforced as written unless they violate law or public policy; judicial assessments of reasonableness cannot override clear contract terms.