Legal Question in Construction Law in Texas
Demand letter
I received a demand letter from a client, who is also a lawyer, saying I damaged his sprinkler system in the process of a construction project. In my scope of work, I have a clause that the contractor is not responsible for sprinkler lines, heads or control wires. I also have a clause in my contract that says '' If a dispute arises out of or relates to this contract, or the breach thereof, and if the dispute cannot be settled through negotiation, the parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Construction industry mediation rules before resorting to litigation or some other dispute resolution procedure.'' My question is can he skip the required arbitration and proceed with a suit under the Texas Deceptive Trade Practices Act and Texas Civil Practices and Remedies Code? If he proceeds w/ the suit is he breeching the contract?
Thanks for your help
2 Answers from Attorneys
Re: Demand letter
I'd have to read your contract to make sure it is binding, but assuming it is a court would almost assuredly force them to negotiate and then arbitrate. Let me know if you want me to handle this. I'm experienced in these areas of the law.
Re: Demand letter
The contract appears to bind them to mediate the dispute. If that fails, they can use any means of settlement, including litigation under the DTPA. Your clause does not bind them to arbitrate; only mediate.
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