Girolametti v. Michael Horton Associates, Inc.

In this construction dispute between a property owner and a general contractor the Supreme Court affirmed the judgment of the appellate court that, in the absence of clear evidence of contrary intent by the parties, subcontractors are presumptively in privity with the general contractor for purposes of res judicata as to the subcontractors' claims that did not participate in arbitration. These appeals arose from disputes regarding the construction of a store expansion. Plaintiffs, the store owners, and the general contractor, pursuant to a contract between them, entered arbitration to resolve various disputes regarding the project. None of the five subcontractors (Defendants) were formally a party to the arbitration. The arbitrator issued an award ordering Plaintiffs to pay the general contractor $508,597 for sums due. Plaintiffs subsequently filed suit seeking to recover from Defendants. Defendants moved for summary judgment based on res judicata. The trial court denied the motions on the grounds that Defendants were not parties to the arbitration and were not in privity with the general contractor. The appellate court reversed. The Supreme Court affirmed, holding that Defendants were in privity with the general contractor for purposes of res judicata and that Plaintiffs' claims were barred because they could have been raising during the arbitration. View "Girolametti v. Michael Horton Associates, Inc." on Justia Law