JBC of Wyoming Corp. v. City of Cheyenne
843 P.2d 1190 | Wyoming Supreme Court | 1992
What This Case Means for Subcontractors
JBC, a general contractor on a $20+ million pipeline project in Wyoming, went to arbitration with the City of Cheyenne over unpaid amounts. The arbitrator awarded JBC consequential damages (30% per year on unpaid sums) even though JBC never formally submitted this claim through the contract's required claims procedure. The Wyoming Supreme Court sided with the lower court and struck down the consequential damages award, ruling the arbitrator exceeded his authority by awarding damages that weren't properly submitted through the contractual process.
Key Takeaways
- •Always submit all claims—including consequential damages—through the exact procedure your contract requires, or you may lose the right to recover them even if an arbitrator initially awards them.
- •Arbitrators can only decide issues that are actually submitted to them; failing to formally present a claim type means it's off the table, regardless of the merits.
- •Document and formally notify the owner of every type of damage you're claiming (delay costs, lost productivity, financing charges, etc.) using the contract's mandated process before arbitration or litigation begins.
An arbitrator exceeds his powers when he decides matters which were not submitted to him.
Frequently Asked Question
Can an arbitrator award me damages I didn't formally claim during the dispute process?
No. An arbitrator can only decide issues actually submitted to them. If your contract requires you to submit claims through a specific procedure and you skip that step, you lose the right to recover those damages—even if the arbitrator thinks you deserve them. Always follow your contract's claims process exactly.
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