G.L.H.C. Services Company v. Archer Western Contractors, LLC et al

Filing 42

ORDER granting 30 Motion to Stay and Compel Arbitration. The Parties shall first endeavor to resolve the claims between them in this action by mediation; In the event the aforementioned mediation is unsuccessful and an impasse is declared, the Par ties shall submit all claims between them in this action to arbitration; This action is hereby stayed in its entirety pending the completion of the arbitration; The Parties shall report to the Court within ten (10) days of the rendering of an arbitra tion decision in order to inform the Court as to the outcome of said arbitration; and This Court retains jurisdiction over this matter pending the arbitration award to address confirmation of the award. Signed by Chief Judge James C. Dever III on 4/27/2017. (Briggeman, N.)

IN THE UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF NORTH CAROLINA
WESTERN DIVISION
Civil Action No. 5:16-cv-770-D
UNITED STATES OF AMERICA, FOR THE USE
OF G.L.H.C. SERVICES COMPANY,
Plaintiff,
vs.
ARCHER WESTERN CONTRACTORS, LLC;
Defendant and Third-Party Plaintiff,
'

CONSENT ORDER COMPELLING
ARBITRATION AND STAYING ACTION
PENDING ARBITRATION

and
TRAVELERS CASUALTY AND SURETY
COMPANY OF AMERICA,
Defendant,
vs.
AEGIS SECURITY INSURANCE COMPANY,
Third-Party Claim Defendant.

THIS MATIER came on to be heard and being heard by the consent of the parties before
the undersigned Chief United States District Judge, United States District Court for the Eastern
District of North Carolina (Western Division), on Archer Western Contractors, LLC's ("A WC")
Motion to Stay Action and Compel Arbitration, and the Court finds as follows:
1.

AWC was involved as contractor, and Travelers Casualty and Surety Company of

America ("Travelers") as surety, for the construction, alteration, or repair of a public building or
public work located at the United States Army installation known as Fort Bragg in Cumberland

County, North Carolina, being more specifically described as the SOF Battalion Operations
Facility, 1522 Hurst Drive, Fort Bragg, North Carolina 28387, Project No. 69287 (the "Project").
2.

On September 30, 2013, Travelers, as surety, issued Payment Bond No.

105987267 (the "Payment Bond") for the Project, on which AWC is listed as principal.
3.

AWC and G.L.H.C. Services Company ("GLHC") executed a written subcontract

agreement dated August 22, 2014 (the "Subcontract") pursuant to which GLHC was to furnish
all labor, equipment, insurance, taxes and supervision as required to fully fabricate, deliver, and
install all light and heavy gauge framing, gypsum board, insulation, acoustical ceiling, rough
carpentry, and acoustical walls (the "Work") for the construction, alteration, or repair of the
Project.
4.

On September 2, 2014, GLHC and Aegis Security Insurance Company ("Aegis")

entered into Subcontractor Performance Bond No. B 10 023 463 (the "Performance Bond") on
which GLHC is listed as principal and Aegis as obligee for the performance of the Work on the
Project.
5.

During and after completion of the Work, certain disputes have arisen between

GLHC and AWC relating to the performance of the Work, certain alleged additional and/or
changed work performed by GLHC, Project delays, additional amounts due, and payment under
the Subcontract and on the Project.
6.

GLHC has asserted claims against A WC relating to, among other things, unpaid

invoices submitted in connection with GLHC's Work, certain alleged extra and/or changed work,
and other alleged breaches of the Subcontract.
7.

A WC has asserted claims against GLHC relating to alleged delayed performance

of the Work and other alleged breaches ofthe Subcontract.

8.

GLHC filed the immediate action against both A WC and its payment bond surety

Travelers setting forth various claims and causes of action.
9.

Within the Lawsuit, AWC asserted a counterclaim against GLHC as well as a

claim against GLHC's performance bond surety, Aegis.
10.

The Parties now consent to the resolution of their disputes by pre-arbitration

mediation and then, if necessary, arbitration in accordance with the arbitration provision set forth
in the Subcontract as modified and clarified by an arbitration agreement between the Parties, and
to have the Lawsuit stayed pending said arbitration.
It is therefore ORDERED, ADJUDGED, AND DECREED as follows:
1.

The Parties shall first endeavor to resolve the claims between them in this action

by mediation;
2.

In the event the aforementioned mediation is unsuccessful and an impasse is

declared, the Parties shall submit all claims between them in this action to arbitration;
3.

· This action is hereby stayed in its entirety pending the completion of the

arbitration;
4.

The Parties shall report to the Court within ten (1 0) days of the rendering of an

arbitration decision in order to inform the Court as to the outcome of said arbitration; and
5.

This Court retains jurisdiction over this matter pending the arbitration award to

address confirmation of the award.
SO ORDERED. This

1-1

day of April2017.

JA
S C. DEVER III
Chief United States District Court Judge

CONSENTED TO:

Is/ B. David Carson
B. David Carson, N.C. Bar No. 15795
dcarson@jahlaw .com
P. 0. Box 36469
Charlotte, NC 28236
Tel: [phone]
Fax: [phone]
Attorneys for Plaintiff and
Aegis Security Insurance Company

Is/ Parker E. Moore
Parker E. Moore, N. C. Bar No. 43077
[e-mail]
P. 0. Box 36469
Charlotte, NC 28236
Tel: [phone]
Fax: [phone]
'
Attorneys for Plaintiff and
Aegis Security Insurance Company
Is/ Peter J. Marino
Peter J. Marino
[e-mail]
Smith, Anderson, Blount, Dorsett,
Mitchell & Jernigan, LLP
Post Office Box 2611
Raleigh, North Carolina 27602-2611
Attorney for Defendants Archer Western Contractors, LLC
and Travelers Casualty and Surety Company ofAmerica

Is/ Tobias R. Coleman
Tobias R. Coleman
[e-mail]
Smith, Anderson, Blount, Dorsett,
Mitchell & Jernigan, LLP
Post Office Box 2611
Raleigh, North Carolina 27602-2611
Attorney for Defendants Archer Western Contractors, LLC
and Travelers Casualty and Surety Company ofAmerica

Is/ J. Gray Wilson
J. Gray Wilson
[e-mail]
Smith, Anderson, Blount, Dorsett,
Mitchell & Jernigan, LLP
Post Office Box 2611
Raleigh, North Carolina 2 7 602-2611
Attorney for Defendants Archer Western Contractors, LLC
and Travelers Casualty and Surety Company ofAmerica