Highland Crossing, Lp v. Ken Laster Co.
2010 OK CIV APP 124 | Court of Civil Appeals of Oklahoma | 2010
What This Case Means for Subcontractors
A subcontractor sued a property owner for payment after completing dirt work and infrastructure on an apartment project in Oklahoma. The owner tried to avoid arbitration, but the court enforced an arbitration clause that flowed down from the general contractor's contract with the owner to the subcontractor's agreement. The subcontractor won the arbitration award, and the court upheld it, meaning the owner had to pay despite trying to escape the arbitration process.
Key Takeaways
- •Arbitration clauses in general contractor agreements can bind the owner to arbitrate subcontractor disputes if the subcontract explicitly references the same arbitration terms.
- •Make sure your subcontract clearly states it incorporates the general contractor's arbitration clause—vague language may not protect you if disputes arise.
- •If you're a subcontractor, arbitration can be faster and cheaper than court litigation, but only if the clause is properly drafted and flows down from the prime contract.
Owner agreed to arbitrate any claim arising out of or related to the Contract.
Frequently Asked Question
Can an owner be forced to arbitrate a subcontractor dispute if only the general contractor agreed to arbitrate?
Yes, if the subcontract explicitly incorporates the general contractor's arbitration clause. In this case, the subcontract stated it would arbitrate "in the same manner and under the same procedure" as the prime contract, which bound the owner to arbitration. Make sure your subcontract clearly references the prime contract's dispute resolution terms.
Related Cases
Gall v. United States
Appellate courts must review all sentences under an abuse-of-discretion standard regardless of whether they fall inside or outside the Guidelines range, and cannot require extraordinary circumstances to justify sentences outside the range.
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.
Piotrowski v. City of Houston
Municipal liability under § 1983 requires proof of official policy as the moving force; isolated employee misconduct insufficient, and equal protection claim time-barred.
Adarand Constructors, Inc. v. Pena
Federal race-based classifications must be analyzed under strict scrutiny regardless of whether they benefit or burden minorities, and the Fifth Amendment's equal protection obligation equals the Fourteenth Amendment's.
Northeastern Florida Chapter of the Associated General Contractors of America v. City of Jacksonville
An association of contractors has standing to challenge a minority set-aside ordinance without proving any member would have won a contract absent the ordinance; the injury is denial of equal competitive opportunity, not loss of a specific contract.