March 1985
Arbitration Journal;Mar1985, Vol. 40 Issue 1, p70
Academic Journal
The article discusses a case of Brasel & Sims Construction (Brasel). Both entered into a contract with the Wyoming State Highway Commission (Commission) to construct a highway. The contract provided for resolution of disputes over additional compensation by the Commission within 60 days of receipt of a written notice of claim by the project engineer. Unless timely appealed, the decision would be final and binding. Brasel claimed that it was entitled to extra payment because of an unrealistic project completion date and the failure of the Commission to provide adequate water and gravel, Brasel filed suit for damages. The Commission raised the dispute resolution clause as a defense and sought judicial deferral to the Commission's denial of Brasel's claims. The court found that the clause lacked any provision for finality in the event of an appeal. Thus the plain language of a dispute resolution clause must evidence the intent of the parties to be bound by the result.


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