Conlon Construction Co. v. Tri-State Concrete Construction, Inc., Top Notch Plumbing Heating & Electrical, Inc., and Runde Electric, LLC

Summary

The Iowa Court of Appeals held that a subcontractor's compulsory breach-of-contract counterclaim was subject to the parties' express arbitration agreement. The court affirmed the denial of Conlon Construction's motion to dismiss, reversed the denial of its motion to compel arbitration against Tri-State Concrete, and remanded for the district court to stay proceedings concerning Tri-State's claim pending arbitration. The court also noted that Top Notch and Runde had dismissed their counterclaims after the appeal was filed.

Holdings

1. Tri-State's breach-of-contract counterclaim fell within the subcontract's provision selecting binding arbitration for any claim or dispute arising out of or relating to the agreement and therefore had to be arbitrated.
2. The district court erred in refusing to enforce the arbitration clause merely because the case involved multiple parties and related disputes.
3. Conlon did not waive its right to arbitrate under the circumstances presented.

Questions Presented

1. Whether Tri-State's compulsory breach-of-contract counterclaim was subject to the subcontract's express arbitration agreement.
2. Whether the district court could deny arbitration because the underlying mechanic's-lien foreclosure action involved multiple parties and related disputes.
3. Whether Conlon waived its right to arbitrate by initiating the mechanic's-lien foreclosure action.

Disposition

other