Legal Question in Construction Law in California

Mediation/arb clause re atty fees

If a person has an arbitration/mediation clause in a construction contract which prohibits collection of attorney fees to any party who fails or refuses to mediate or arbitrate a problem arising under the contract, does one have to arbitrate or mediate ''fraud.''


Asked on 4/01/06, 1:08 am

3 Answers from Attorneys

JOHN GUERRINI THE GUERRINI LAW FIRM - COLLECTION LAWYERS

Re: Mediation/arb clause re atty fees

Under a properly worded clause, the answer is YES. A properly worded arbitration provision will be extremely broad, broad enough to include and encompass even claims of fraud in the inducement. In other words, even if you are claiming that the contract itself was procured through fraud, a properly worded provision will require you to arbitrate that issue.

Regarding the mediation provision, these are becoming more and more common. If worded properly, they mandate that any party, before resorting to arbitration (or litigation, as the case might be), must make a good faith effort to mediate the dispute; and the penalty for refusing to do so (or otherwise failing to comply) is that the party waives its right to an attorney fee award at the end of the case (to the extent that such a right existed in the first place).

I would need to see the specific arbitration (and mediation) provisions to provide a more thorough and thoughtful analysis.

You should find yourself a qualified litigator if you need further assistance.

Good luck.

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Answered on 4/01/06, 9:04 am
OCEAN BEACH ASSOCIATES OCEAN BEACH ASSOCIATES

Re: Mediation/arb clause re atty fees

Even if you mediate or arbitrate you will do better by obtaining representation. To reserve your right to collect attorney fees if it is litigated try the Alternative Dispute Resolution options. Call me directly at 16192223504.

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Answered on 4/01/06, 2:03 am
Norman Gregory Fernandez, Esq. The Law Offices of Norman Gregory Fernandez & Associates

Re: Mediation/arb clause re atty fees

I would need to see the contract to give you an opinion.

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Answered on 4/07/06, 12:30 am


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