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D.C. Federal Court Declines to Enjoin Arbitration Because the Arbitrator Could Issue Any Equitable Relief Required, the Integrity of the Arbitration Was Not Threatened and the Movant's Projected Economic Loss Did Not Prove Irreparable Harm

TK Servs., Inc. v. RWD Consulting, LLC, 2017 U.S. Dist. Lexis 97239 (D.D.C., June 23, 2017)

Author: Emily D. Anderson

8/31/2017

Read the full post at Constructlaw

D.C. Federal Court Declines to Enjoin Arbitration Because the Arbitrator Could Issue Any Equitable Relief Required, the Integrity of the Arbitration Was Not Threatened and the Movant's Projected Economic Loss Did Not Prove Irreparable Harm

This litigation arose from a dispute between TK Services, Inc. (TKS), as sub-subcontractor, and RWD Consulting, LLC (RWD), as prime subcontractor, in connection with a sub-subcontract (the Subcontract), whereby TKS agreed to be responsible for managing operation and maintenance-related services (the Services) for the Environmental Protection Agency headquarters in Washington DC (the Project or the EPA Building) in exchange for a monthly fixed fee and a percentage of profits derived from reimbursable projects performed at the EPA Building. Pursuant to the Subcontract, all funds received by RWD as payment for the Services performed at the Project and all working capital provided by TKS were to be deposited into a joint bank account to which both TKS and RWD were signatories.

In its complaint, TKS alleged that RWD (1) breached the Subcontract by failing to properly compensate TKS and excluding TKS from accessing the EPA Building, (2) converted the funds in the joint bank account by unilaterally closing the account, and (3) was unjustly enriched by its improper conduct. TKS also moved for a preliminary injunction to sequester the profits received by RWD in connection with the Project, prevent RWD from excluding TKS from the EPA Building and the joint bank account, and reinstate TKS to its prior role under the Subcontract.