A recent decision of the Connecticut
Court of Appeals illustrates that
including an arbitration clause in a
construction contract has serious
consequences. The case of Carabetta
Builders, Inc. v. Hotz Corp. arose from a
contract for Hotz to supply structural
steel and other components to
Carabetta, who was constructing a
high-rise condominium building. Using
standard language in their contract, the
parties agreed to arbitrate "all claims,
disputes, and other matters in question
arising out of, or relating to, this
subcontract, or the breach thereof." So
when Carabetta failed to tender
payment, Hotz filed a demand for
arbitration. As is common, Carabetta
also made charges of its own.
A Deal's A Deal
The arbitration hearing was completed
within two months. The
arbitrator, after