Disputes & Claims

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Co-authors: Russell Jumper and Tim Fandrey
Published in Cleaning & Restoration Magazine

Just as the Texas coast assessed the magnitude of Hurricane Harvey’s damage, Hurricane Irma was taking shape in the Atlantic. Fewer than two weeks later, Irma would crash into the Florida Keys. Estimates put Harvey and Irma’s combined impact in excess of $275 billion. No small part of that amount will be required for cleaning and restoration services. Before Irma made landfall, even as Harvey hovered over the Houston area, restoration professionals from around the country arrived along the Texas coast to kick-start Texas’ recovery. For the people who lost their homes, possessions, and even family or friends, the focus turned to recovery. For some of the restoration professionals who helped, and continue to help, a second storm is forming: owner and insurer payment disputes. Like boarding up windows and setting out sandbags, there are some steps cleaning and restoration professionals can take in an effort to minimize the damage from the approaching payment dispute storm.

Non-competes are governed by different rules from other contracts.  Courts limit non-competes to certain circumstances, such as when an individual has received confidential information, goodwill, or specialized training; even then, the restrictions on competition must be “reasonable.”  However, when it comes to determining the applicability of the Federal Arbitration Act, the United States Supreme Court recently held non-competes should be treated the same as any other contract

Bankruptcy court is often the “court of bad news” for creditors.  In particular, subcontractors and suppliers face unique challenges when a customer files for bankruptcy.  But they also have unique rights that may elevate their claims.  Failing to act quickly and correctly on those rights can have significant consequences. 

If you decide to agree to an arbitration clause, then you should carefully consider what issues you want to address in the clause.  Below are some key points and provisions that should be considered when negotiating or drafting an arbitration clause.

1.  Consider the Number of Arbitrators 

Using only one arbitrator may be risky because…

Arbitration clauses are very common in contracts in the construction and energy industries.  Many industry players reflexively  insist on arbitration despite its pitfalls.  While arbitration has its place, a bench trial is a viable alternative to arbitration.

Bench trials are simply trials to a judge rather than a jury.  Parties may agree to a bench…