Parties Not Required to Arbitrate Breach of Subcontract Claim, 5th Cir. Affirms

NEW ORLEANS — Parties to a subcontract are not required to arbitrate a breach of contract dispute, the 5th Circuit U.S. Court of Appeals has affirmed, explaining that the subcontract requires an alternative dispute resolution process that does not require arbitration.

In a May 22 opinion, the appellate court explained that the breach of contract claim arose under the “Contract Documents,” which require resolution pursuant to the original project agreement.

TRC Environmental Corp. entered into a project agreement with the City of Austin, Texas, to decommission a power plant. TRC hired LVI Facilities Services, Inc. as a subcontractor on the …