Tim Huey Corp. hired Global Boiler & Mechanical to build a cogeneration facility for $687,175, but Global stopped work in May 1990 after being paid $412,516, claiming Huey breached the contract. The dispute went to arbitration. The Illinois Appellate Court ruled that arbitration awards are nearly impossible to overturn—courts won't vacate them for errors in judgment, mistakes of law or fact, or disputes over damages unless there's fraud, bad faith, or a clear violation of the contract's core terms. This means subcontractors who agree to arbitration should understand they have very limited appeal options if they lose.
Arbitration clauses are extremely difficult to challenge in court—don't rely on appealing an arbitration loss unless you can prove fraud or bad faith
Written change orders are essential; the contract required them for extra work, so verbal agreements won't protect you if disputes arise