Lummus Global, a contractor, built natural gas facilities in Peru and disputed payment with the project owner Aguaytia. After arbitration, the panel ruled Lummus owed $13.4 million net. The court mostly upheld the arbitration award but sent back two issues for reconsideration: tax liability and credit offsets. This case shows that even when arbitration is final, courts can still review and adjust specific findings.
Arbitration awards are hard to overturn, but courts will examine tax calculations and financial offsets carefully—keep detailed records of all credits and tax positions
Delays and defects in construction trigger liquidated damages claims that arbitrators take seriously—document your schedule compliance and quality control from day one
Broad arbitration clauses are enforceable and binding, so understand what you're signing and how disputes will be resolved before work starts