Petrofac, a subcontractor, submitted a Request for Equitable Adjustment (REA) to DynMcDermott for delays and disruption costs on a petroleum reserve project. The parties had agreed to binding arbitration for all contract disputes. An arbitration panel awarded damages to Petrofac, and the court upheld the award. The Fifth Circuit confirmed that broad arbitration clauses covering "all contract disputes" will be enforced, even when they include complex damages calculations.
Broad arbitration clauses that say "all disputes" or "any claim" will be enforced by courts—don't expect a judge to narrow them later