Virginia Case Summary
September 1, 1999
Bill Grant - Orlando
407-244-1162
GC Cannot Enforce Unsigned Contract With Sub
A general contractor cannot enforce an arbitration clause in subcontractor's
unsigned AIA subcontract. The GC sent the subcontractor an AIA subcontract, but
the subcontractor mobilized on the project without signing it. The subcontractor
abandoned the project after "taking out" the GC's construction-site
trailer with a front-end loader.
The general contractor filed arbitration proceedings; but the subcontractor
moved to stay the arbitration. The Virginia Supreme Court ruled that the
contractor had no right to enforce an arbitration provision in the subcontract,
contrary to an earlier case. The Court ruled that the pre-existing oral
agreement was binding; the unexecuted subcontract did not supercede the oral
agreement. Brooks & Co. General Contractors Inc. v. Randy Robinson
Contracting Inc., 513 S.E.2d 858 (Va. 1999).