May 5

Carbone and Cummiskey score $1.1M victory in arbitration

Goetz Fitzpatrick attorneys Donald J. Carbone and Timothy Cummiskey won a major victory in arbitration for Claimants CTW Electrical Corp. (“CTW”) and Sirina Protection Systems Corp. (“Sirina”). CTW and Sirina commenced an arbitration proceeding against Primary Colors Painting Corp. (“Primary Colors”), and Arch Insurance Company (“Arch”) before the American Arbitration Association. CTW and Sirina had separate subcontracts with Primary Colors in connection with the installation of a fire alarm system at the Veteran Administration’s hospital facilities on 23rd Street in New York.

Arch issued the payment bond to Primary Colors on the project. CTW and Sirina were subsequently terminated by Primary Colors and Claimants brought claims for wrongful termination against Primary Colors, together with 12 other separate categories of damages, for a total claim of $902,574. Arch, as surety, agreed to appear in the arbitration and be bound by the arbitration award. Primary Colors counterclaimed for breach of contract, and alleged damages of $1,000,000.

Following 16 hearing dates, testimony from 11 witnesses and the submission of over 500 exhibits by the parties, the Arbitrator issued an Award in favor of CTW and Sirina, awarding Claimants 100% of their damages in the sum of $902,574. The Award was against Primary Colors and Arch, jointly and severally, and Respondents’ counterclaims were dismissed in their entirety. Additionally, the Arbitrator awarded Claimants their share of the Arbitrator’s fees and expenses ($121,962), the AAA’s administrative fees ($23,900), the Claimants share of their court reporter fees ($22,012), and interest from December 20, 2012 to entry of judgment of the Award (interest on the Award is currently $198,516.45, and accruing). The total Award is $1,195,533.84. Read the full arbitration award in favor of our clients here.

Leave a Comment