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CUC wants arbitration case filed by engineering company stopped
The Commonwealth Utilities Corp. yesterday asked the federal court to stop the arbitration case filed against CUC before the American Arbitration Association in Hawaii by Vanderpool Pipeline Engineers Inc., which is seeking $527,000 in payment for CUC’s stalled oil pipeline project.
CUC, through counsel James Sirok, wants the U.S. District Court for the NMI to declare that CUC has no contractual obligation to arbitrate disputes with Vanderpool.
Sirok asked the court to declare that the arbitration provision being relied upon by Vanderpool to prosecute its arbitration case against CUC with the American Arbitration Association is invalid.
Sirok asserted that CUC never agreed or consented to arbitration.
Vanderpool served as the pipeline designer and third-party construction manager for the pipeline project.
The lawyer said Vanderpool tried to bootstrap an arbitration agreement and usurious late fees into the original contract between CUC and Vanderpool via two change orders.
Sirok said Vanderpool inserted an arbitration clause into a proposal for additional work to be added to the original contract.
Sirok said CUC’s contract with Vanderpool expired on Dec. 31, 2014, and that to date, the pipeline project has not been completed.
