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Pipeline firm asks federal court to deny CUC bid to halt arbitration proceedings
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Posted on Jun 01 2015
Vanderpool Pipeline Engineers Inc. has asked the federal court to deny the Commonwealth Utilities Corp.’s request to stop the arbitration now underway in Hawaii between Vanderpool and CUC.
CUC has no reasonable or legitimate prospect of prevailing on the merits in this case, as the facts clearly show the utilities agency agreed to arbitration with Vanderpool in the event of a dispute between them, said Vanderpool counsel Robert J. O’Connor.
“Since there is a demonstrably valid arbitration agreement between the parties, that agreement should be enforced according to its terms,” O’Connor pointed out.
CUC asked the U.S. District Court for the NMI to stop the arbitration case Vanderpool filed against CUC before the American Arbitration Association in Hawaii.
Vanderpool served as the pipeline designer and third party construction manager for the CUC pipeline project. The company is seeking $527,000 payment from CUC over its stalled oil pipeline project.
CUC, through counsel James Sirok, asked the court to declare that there is no contractual obligation for CUC to arbitrate disputes with Vanderpool.
Sirok wants the court to declare that the arbitration provision being relied upon by Vanderpool to prosecute its case against CUC with the American Arbitration Association is invalid.
Sirok asserted that CUC never agreed or consented to arbitration.
Sirok said Vanderpool inserted an arbitration clause into a proposal for additional work to be added to the original contract via two change orders.
Sirok said CUC’s contract with Vanderpool expired on Dec. 31, 2014, and to date, the pipeline project has not been completed.
Vanderpool filed the arbitration case against CUC last Feb. 14.
In Vanderpool’s opposition, O’Connor said CUC is bound by contract to arbitrate.
O’Connor said CUC adopted the Oct. 7, 2013, proposal when it adopted change order 5.
The Oct. 7 proposal refers to a proposal that Vanderpool submitted to CUC, detailing the terms on which Vanderpool offered to perform certain additional work that needed to be done in connection with an ongoing pipeline project.
O’Connor said CUC adopted the Oct. 7 proposal again when it adopted change order 6.
