Calore Rigging Corp. v. Sterling Engineering Const. Co.

Decision Date25 November 1969
Docket NumberNo. 550-A,550-A
Citation259 A.2d 123,106 R.I. 290
CourtRhode Island Supreme Court
PartiesCALORE RIGGING CORPORATION v. STERLING ENGINEERING & CONSTRUCTION COMPANY, Inc. ppeal.
OPINION

KELLEHER, Justice.

This is a civil action wherein the plaintiff seeks to recover damages from the defendant for its alleged breach of a contract. In the Superior Court, the defendant filed a motion that all proceedings be stayed until the parties submit their dispute to arbitration as provided in the agreement which is the subject of this litigation. The motion was denied and an appeal 1 was taken to this court.

On February 17, 1966, the parties hereto entered into a subcontract whereby plaintiff would do certain work incidental to the erection of a housing for the elderly project in Woonsocket. The defendant at some time previous to this date had been hired by the Woonsocket Housing Authority as the prime contractor who would build this particular development.

The subcontract which is in evidence is six pages in length and contains 19 articles or conditions. The portion of the agreement which is germane to the issue before us reads as follows:

'Article XIX: Disputes

'Except as otherwise provided in this Agreement, any dispute concerning a question of fact arising under this Agreement which cannot be resolved by the parties shall be decided by arbitration under the provisions of the Prime Contract or, if none, by the arbitration procedures provided by Title 10, Chapter 3 of the General Laws of Rhode Island. Pending final decision of a dispute hereunder, the Subcontractor shall proceed diligently with the performance of the Agreement.

'This Agreement Shall Bind The Parties Hereto, Their Respective Heirs, Successors, Executors, Administrators and Assigns.

'In Witness Whereof, the parties hereto have by their duly authorized representatives hereunto set their hands and seals the day and year above written.

'Accepted by Calore Rigging Corp.

/s/ August L. Brassard

Authorized Signature

Title General Mgr.

'Sterling Engineering & Construction

Co., Inc.

/s/ Marc J. Pearlman

Title Treasurer'

The defendant's appeal has two facets. It asks that we modify our holding in Donahue v. Associated Indemnity Corp., 101 R.I. 741, 227 A.2d 187, or, in the alternative, it contends that its agreement with plaintiff falls within the provisions of G.L.1956, chap. 16 of title 37, the Public Works Arbitration Act, and that the Donahue case is inapplicable.

We will not modify our holding in Donahue. There we held that by virtue of the 'unique' provisions of § 10-3-2, an arbitration clause in a written contract would be upheld and enforced only when it is placed immediately before the testimonium clause or signatures of the parties. An arbitration provision which is not in accord with the statutory mandate, we said, is of no force and effect. The arbitration clause in the subcontract in the case at bar does not immediately precede the testimonium clause and the trial court correctly held that it fell within the proscription of Donahue. Should defendant wish relief from the doctrine of Donahue, his remedy is to be found in the legislature-not in this court.

In 1967 the General Assembly enacted chap. 16 of title 37 known as the Public Works Arbitration Act. The portions of the act which are relevant here are as follows:

'37-16-2. Provision for arbitration.-(a) A provision in a written contract executed on or after January 1, 1962, for the construction, alteration, repair or painting of any public building, one party to which is the state, a city, a town, or an authority, a board, a public corporation or any similar body created by statute or ordinance or any committee, agency or subdivision of any of them, to settle by arbitration any dispute or claim arising out of or concerning the performance or interpretation of the contract shall be valid, irrevocable, and enforceable, save upon grounds existing in law or equity for the revocation of such contract.'

'37-16-3. Application to subcontracts.-When a contract described in section 37-16-2 is in effect and any party thereto has entered into a subcontract to perform part of the work and/or furnish any materials in connection with the work described in the contract and the terms of the subcontract provide for arbitration of a dispute or claim concerning the performance or interpretation thereof, or the...

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3 cases
  • Pacheco v. Nationwide Mut. Ins. Co., 73-330-A
    • United States
    • United States State Supreme Court of Rhode Island
    • 7 Mayo 1975
    ......275, 292 A.2d 865 (1972); Calore Rigging Corp. v. Sterling Eng'r & Constr. Co., ......
  • Stanley-Bostitch, Inc. v. Regenerative Environmental Equipment Co., Inc.
    • United States
    • United States State Supreme Court of Rhode Island
    • 30 Junio 1997
    ...... plaintiff a quotation for the cost of engineering services relating to one of the two re-therm ... Donahue v. Associated Indemnity Corp., 101 R.I. 741, 745, 227 A.2d 187, 189 (1967); ... placement within a contract, see, e.g., Calore Rigging Corp. v. Sterling Engineering & ......
  • A. C. Beals Co. v. Rhode Island Hospital, 1438-M
    • United States
    • United States State Supreme Court of Rhode Island
    • 27 Junio 1972
    ......'s failure to provide adequate engineering supervision, petitioner was forced to spend in ...Associated Indemnity Corp., 101 R.I. 741, 227 A.2d 187 (1967). We there ...    This statute was before us again in Calore Rigging Corp. v. Sterling Engineering & Constr. ......

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