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New Jersey Federal District Court Holds that Arbitration Clause in AIA A201-1997 Does Not Apply to Post Construction Disputes

Blackman & Co., Inc., v. GE Bus. Fin. Servs., Inc., 2016 U.S. Dist. LEXIS 87904 (D.N.J. July 7, 2016)

Author: Jane Fox Lehman

9/15/2016

Read the full post at Constructlaw

New Jersey Federal District Court Holds that Arbitration Clause in AIA A201-1997 Does Not Apply to Post Construction Disputes

Grove Street Realty Urban Renewal, LLC (Grove Street) contracted with Blackman & Co., Inc. (Blackman) to manage a project (the Project) to construct a four-story apartment building in West Deptford, New Jersey between 2007 and 2009 (the Contract). The Contract incorporated AIA Document A201-1997General Conditions of the Contract for Construction.

GEBFS acquired the Project from Grove Street pursuant to foreclosure proceedings in 2012. Three years after it acquired the Project (and six years after construction was complete), GEBFS filed a $4,000,000 Demand for Arbitration with the American Arbitration Association (AAA) against Blackman for alleged post-construction defects, asserting claims for breach of contract and breach of implied warranty. Blackman filed an action in response to GEBFS’ Demand for Arbitration, seeking a judgment that the dispute was not governed by any agreements to arbitrate.

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