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Dispute Resolution Keyed to Carbonneau, 8th Ed.
B. L. Harbert International v. Hercules Steel Co.
Citation:
441 F.3d 905 (2006)Facts
Harbert was awarded a contract by the U.S. Army Corps of Engineers to construct an office complex at Fort Bragg, North Carolina. Harbert subsequently awarded Hercules a $1,197,000 steel fabrication and erection subcontract. The subcontract included a binding arbitration provision and stated that Hercules must perform work according to the “Progress Schedule” prepared by Harbert. However, Harbert created two different schedules: the 2000 schedule with earlier completion dates and the 3000 schedule with more lenient deadlines. Hercules completed its work within the 3000 schedule timeframe but not within the 2000 schedule. Harbert stopped making payments and demanded delay damages. Hercules initiated arbitration seeking the balance due on the subcontract. The arbitrator ruled that Hercules was bound by the 3000 schedule, not the 2000 schedule, and awarded Hercules $469,775 plus interest. Harbert then sought to vacate the award in federal court, arguing the arbitrator manifestly disregarded the law by misinterpreting the contract.
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