Opinion
NO. 2017 CW 0239
03-20-2017
INSULATION SALES & SERVICES, LLC v. MID-SOUTH MECHANICAL CONTRACTORS, INC., ET AL.
In Re: The McDonnel Group, LLC, applying for supervisory writs, 19th Judicial District Court, Parish of East Baton Rouge, No. 642454. BEFORE: HIGGINBOTHAM, THERIOT AND CHUTZ, JJ.
STAY DENIED; WRIT GRANTED. The district court's ruling, which denied the Exception of Prematurity and in the Alternative, Motion to Compel Arbitration and Stay Proceedings, is reversed. There is a strong presumption favoring the enforceability of arbitration clauses. The weight of this presumption is heavy and arbitration should not be denied unless it can be said with positive assurance that an arbitration clause is not susceptible of an interpretation that could cover the dispute at issue. Aguillard v. Auction Management Corp., 2004-2804 (La. 6/29/05), 908 So.2d 1. Although the provisions of the Prime Contract herein between the owner and the contractor were incorporated into the Subcontract Agreement between The McDonnel Group, L.L.C. and Mid-South Mechanical Contractors, Inc., the Subcontract Agreement specifically provides that the obligations, rights and remedies provided by the Prime Contract are applicable to the extent such provisions apply to the work of Mid-South Mechanical Contractors, Inc. or insofar as applicable to the Subcontract. The Subcontract further provides a specific exception to the arbitration provision for any action asserted by the owner of the project where the work or services performed or materials supplied by Mid-South Mechanical Contractors, Inc. are at issue, which is consistent with the Prime Contract, which does not provide for arbitration. Moreover, the Subcontract specifically provides that, in the event of a conflict in provisions of the Prime Contract and the Subcontract, the more stringent and/or restrictive provisions shall apply. In the realm of dispute resolution, this Court finds that arbitration is a more restrictive provision than judicial resolution. This Court finds the arbitration provision in the Subcontract is enforceable. The Exception of Prematurity and in the Alternative, Motion to Compel Arbitration and Stay Proceedings, is granted as to the claims between Mid-South Mechanical Contractors, Inc. and The McDonnel Group, L.L.C.
TMH
MRT
WRC
COURT OF APPEAL, FIRST CIRCUIT /s/_________
DEPUTY CLERK OF COURT
FOR THE COURT