Summary
The District of Columbia Court of Appeals held that a post-arbitration claim seeking to pierce a corporation’s veil and enforce an arbitration award against individual shareholders was not subject to the parties’ construction-contract arbitration agreement. The court concluded that the veil-piercing claim arose from efforts to collect the award, rather than from the contract, and that the arbitrator had clarified that no veil-piercing claim had been submitted. The court affirmed the trial court’s denial of the motion to compel arbitration.
Holdings
- The Dodds' claim to pierce C & C's corporate veil to collect the arbitration award was a separate enforcement claim arising from efforts to collect the award, not a new controversy arising out of or relating to the construction contract. The trial court therefore properly exercised jurisdiction without compelling a second arbitration.
- The veil-piercing claim was not barred as a previously arbitrated claim because the Dodds had proceeded in arbitration under an undisclosed-principal theory, not a corporate-veil-piercing theory, and the arbitrator expressly determined that no veil-piercing claim had been submitted.
- The trial court did not err in applying Schattner's reasoning to the Girons' motion to compel arbitration.
Questions Presented
- Whether the Dodds' post-award claim to pierce C & C's corporate veil and impose personal liability on the Girons was subject to the construction-contract arbitration agreement.
- Whether the veil-piercing claim was barred because the allegations had already been submitted to or decided in the prior arbitration.
- Whether the trial court properly relied on Schattner v. Girard, Inc. in allowing the veil-piercing claim to proceed in court.
Disposition
affirmed
Cases Cited (16)
- Giron v. Dodds, 10-CV-1129 (D.C. Nov. 2, 2010)(history)
- Hercules & Co. v. Beltway Carpet Service, Inc., 592 A.2d 1069, 1071-73 (D.C. 1991)(followed)
- Certain Underwriters at Lloyd's London v. Ashland, Inc., 967 A.2d 166, 173-74 (D.C. 2009)(followed)
- Lawlor v. District of Columbia, 758 A.2d 964, 974-75 (D.C. 2000)(followed)
- Brandon v. Hines, 439 A.2d 496, 501, 507 (D.C. 1981)(followed)
- In re Consolidated Rail Corp., 867 F. Supp. 25, 31 (D.D.C. 1994)(followed)
- Hellman v. Program Printing, Inc., 400 F. Supp. 915, 917-18 (S.D.N.Y. 1975)(followed)
- District Council No. 9 v. APC Painting, Inc., 272 F. Supp. 2d 229, 240 (S.D.N.Y. 2003)(followed)
- Carte Blanche (Singapore) v. Diners Club International, Inc., 2 F.3d 24, 25-28 (2d Cir. 1993)(followed)
- Schattner v. Girard, Inc., 668 F.2d 1366, 1367-71 (D.C. Cir. 1981)(followed)
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