In Gannett Fleming Inc. v. Corman Construction Inc., the Maryland Court of Special Appeals found that a request for arbitration was not time-barred, although the claim likely exceeded Maryland`s general three-year limitation period. The tender contract did not have an explicit limitation period for the commencement of arbitration proceedings. The court held that „the expiration of a statutory limitation period does not entail a request for early arbitration – and thus waive the right to arbitration – unless the parties provide for it in their arbitration agreement“. P. 18. Limitation periods can be a defendant`s best friend. They create security by requiring an applicant to take legal action within a specified period of time or to lose the opportunity to assert the remedy. Thus, companies can rejoice that old disputes probably reappear years later.
But, given the ever-increasing status of arbitration as a privileged forum for dispute resolution, is it certain that a limitation period applies in your arbitration proceedings? It`s surprising that it isn`t. The dispute took place between two parties to a team agreement created to apply for a construction contract from the Land Government. The team agreement did not contain an arbitration clause, but the successful offer resulted in a subcontract containing an AAA arbitration clause using its Industry building rules. P. 5. The request for arbitration was probably filed more than three years after the accumulation of the plea. The Morse case is a critical reminder that if a defendant`s preliminary objections to enforce an arbitration clause are upheld and the case is dismissed, the case is not automatically closed. On the contrary, as has already been said, the action is dismissed. In such cases, a plaintiff wishing to challenge the defendant`s preliminary objections would have to appeal. Otherwise, the claimant`s subsequent arbitration action may be dismissed in the absence of a separate agreement with the defendant providing for the limitation period. Castellanos and colleagues (plaintiffs) filed an alleged class action lawsuit against their employer Raymours for violating the Fair Labor Standards Act (FLSA). All claimants were bound by a staff arbitration program that required arbitration for all labour or compensation claims.
The EAP set a limitation period of 180 days (SOL) for the submission of a claim; contained a waiver of the class action; and contained a provision that enforcement disputes fall within the jurisdiction of a court. . . .