My lawyer informed me that last week, the California Court of Appeals ruled that the standard AIA Contract, used by millions of contractors all over the country, has a non-enforceable arbitration provision used to compel homeowners to arbitrate.
Apparently, the AIA arbitration clause is not in a type style, nor in the proper color, as required by a statute.
We usually take the position that AIA Contracts are universally enforced and accepted throughout the country because of the Federal Arbitration Act, which trumps any state law, because the construction materials (studs, sinks, windows, tile) come from all over the country, and involve interstate commerce.
The decision which I read briefly states that the Court could not determine whether the construction project (a $100,00 home remodel) involved interestate commerce, which was ridiculous,and therefore the Federal law did not trump the California statute.
Bottom Line: If you are doing work in California for a homeowner, you need a separate signed arbitration clause, in addition to the AIA contract.
I hate lawyers. This particular case involved a trial lawyer as the homeowner, who signed the arbitration clause, agreed to arbitrate, particpated in 4 days of arbitration, and only when the award was against him, did he complain. I hate lawyers.
Regards,
Boris
“Sir, I may be drunk, but you’re crazy, and I’ll be sober tomorrow” — WC Fields, “Its a Gift” 1934
Replies
>>I hate lawyers. This particular case involved a trial lawyer as the homeowner, who signed the arbitration clause, agreed to arbitrate, particpated in 4 days of arbitration, and only when the award was against him, did he complain. I hate lawyers.
I knew a contractor who didn't do as he promised and made off with his customer's money.
I hate contractors.
Make sense?
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Sojourners: Christians for Justice and Peace
I don't think we should debate the realitve worth of trial lawyers here. But I do a lot of AIA work, and this decision is stupid, and the facts surrounding the decision are appallingRegards,
Boris"Sir, I may be drunk, but you're crazy, and I'll be sober tomorrow" -- WC Fields, "Its a Gift" 1934
>>I don't think we should debate the realitve worth of trial lawyers hereI agree completely. So why did you bring it up?>> this decision is stupid, and the facts surrounding the decision are appallingDo you have a case name or citation?My experience is that the facts and circumstances of a case often get twisted with a retelling or two, and one can't judge the merits of a case without reading it.
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Sojourners: Christians for Justice and Peace
Boris ..i've used an arbitration clause for almost 20 years..
but the one we use is the "American Arbitration Association for Construction Industry Arbitration Rules supplemented by the procedures for residential construction disputes"
we had to change our wording about 10 years ago because of some RI court decisionMike Smith Rhode Island : Design / Build / Repair / Restore