GeoTek Alaska, Inc., v. Jacobs Engineering Group, Inc.

An insolvent subcontractor failed to pay its sub-subcontractor, and the sub-subcontractor sought payment directly from the general contractor through arbitration. The general contractor declined to participate. The arbitrator awarded damages to the sub-subcontractor, who filed an action to confirm the award with the superior court. The sub-subcontractor also brought a negligence claim, contending that the general contractor knew of its subcontractor's financial instability and negligently failed to ensure that the sub-subcontractor would be paid. The superior court granted summary judgment to the general contractor on both the enforceability of the arbitration award and the viability of the negligence claim. The sub-subcontractor then appealed. After review, the Supreme Court affirmed, finding that the superior court correctly decided that whether the general contractor effectively exercised its contractual right to decline arbitration is an issue of arbitrability, and that the general contractor had no extra-contractual duty in tort to guarantee its subcontractor's payment obligations. View "GeoTek Alaska, Inc., v. Jacobs Engineering Group, Inc." on Justia Law