VA STATESupreme Court of Virginia
1996

Waterfront Marine Construction, Inc. v. North End 49ers Sandbridge Bulkhead Groups A, B and C

468 S.E.2d 894Supreme Court of Virginia • Decided 1996Modified

HOLDING

Waterfront Marine Construction built a bulkhead for a Virginia Beach homeowner group, which later failed. The homeowners demanded arbitration claiming defective work. The Virginia Supreme Court ruled that courts—not arbitrators—decide whether a dispute is arbitrable unless the contract explicitly says otherwise. The court also held that disputes over whether someone complied with a prior arbitration award cannot be arbitrated under the original contract.

KEY FINDINGS

Arbitration Agreement

If a client sues you over arbitrability, the court will decide the issue, not an arbitrator. Your arbitration clause must be crystal clear if you want arbitrators handling arbitrability questions.

Dispute Resolution

Don't assume an arbitration clause covers everything. Disputes about whether someone followed a previous arbitration award are separate and go back to court.

FULL COURT OPINION