McInnis Electric Company v. Brasfield & Gorrie, LLC and James Mapp

Mississippi Supreme Court·Decided October 19, 2023·No. 2021-CA-01115-SCT·Published

Opinion

IN THE SUPREME COURT OF MISSISSIPPI NO. 2021-CA-01115-SCT

McINNIS ELECTRIC COMPANY v.

BRASFIELD & GORRIE, LLC, AND JAMES MAPP

DATE OF JUDGMENT: 09/13/2021 TRIAL JUDGE: HON. WINSTON L. KIDD TRIAL COURT ATTORNEYS: SHIRLEY PAYNE CYNTHIA ANN STEWART

DENNIS L. HORN

R. LANE DOSSETT

RALPH B. GERMANY, JR.

SIMON TURNER BAILEY

COURT FROM WHICH APPEALED: HINDS COUNTY CIRCUIT COURT ATTORNEYS FOR APPELLANT: DENNIS L. HORN R. LANE DOSSETT

SHIRLEY PAYNE

LEIGH KATHRYN PAYNE HORN

ATTORNEYS FOR APPELLEES RALPH B. GERMANY, JR.

SIMON TURNER BAILEY

RANKIN SUMNER FORTENBERRY NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: AFFIRMED - 10/19/2023 MOTION FOR REHEARING FILED:

CONSOLIDATED WITH

NO. 2021-CA-01300-SCT

McINNIS ELECTRIC COMPANY v.

BRASFIELD & GORRIE, LLC, AND JAMES MAPP

DATE OF JUDGMENT: 09/13/2021 TRIAL JUDGE: HON. WINSTON L. KIDD COURT FROM WHICH APPEALED: HINDS COUNTY CIRCUIT COURT ATTORNEYS FOR APPELLANT: DENNIS L. HORN SHIRLEY PAYNE

R. LANE DOSSETT

LEIGH KATHRYN PAYNE HORN

ATTORNEYS FOR APPELLEE: RALPH B. GERMANY, JR.

SIMON TURNER BAILEY

RANKIN SUMMER FORTENBERRY NATURE OF THE CASE: CIVIL - CONTRACT DISPOSITION: AFFIRMED - 10/19/2023 MOTION FOR REHEARING FILED:

EN BANC.

COLEMAN, JUSTICE, FOR THE COURT:

¶1. The instant matter stems from disagreements and a broken contract between a contractor and subcontractor allegedly brought on by the COVID-19 pandemic. They contest whether arbitration is appropriate to settle their disputes. The trial court compelled arbitration, and we affirm.

FACTS

¶2. Construction firm Brasfield & Gorrie, LLC, received the prime contract to expand the University of Mississippi Medical Center Children’s Hospital in 2017. Electrical contractor McInnis Electric Company secured the winning bid to install the electrical and low voltage systems package for the project and subsequently signed a subcontract with Brasfield & Gorrie. Terms of the subcontract incorporated the prime contract, which were related to the same project by reference.

¶3. The subcontract signed by both parties states, “THIS CONTRACT IS SUBJECT TO ARBITRATION.” It also provides a specific provision regarding “CLAIMS AND DISPUTES; ARBITRATION.” There, the parties stipulated that they “intend[ed] that all claims of Subcontractor (McInnis) shall be resolved in accordance with the provisions of the Contract Documents and this Subcontract . . . .” Later in the same article, the process for all claims handled and resolved under a dispute resolution process with the owner, i.e., the children’s hospital, is outlined. It further provides as follows:

any disputes between Contractor and Subcontractor not resolved under Paragraph 29.2, including any disputes in which Subcontractor has a claim against another subcontractor, shall be finally determined by binding arbitration in accordance with the current Construction Industry Rules of the American Arbitration Association by one or more arbitrators selected in accordance with said Rules. The parties acknowledge that this Subcontract evidences a transaction involving interstate commerce and that this agreement to arbitrate is enforceable under 9 U.S.C. §§ 1, et seq.[1]

¶4. Additionally, the terms of the contract provided that work was set to begin on the project on February 15, 2018. However, McInnis, was directed not to report on site until June 4, 2018, and, due to delays, was unable to begin until July 23, 2018. McInnis’s work began with underground construction of a complex web of conduits, which were successfully installed, with the exception of damage caused by the concrete contractor. As work progressed, the schedule allegedly became delayed as a result of Brasfield & Gorrie’s failure to coordinate the work of the various subcontractors. By August 1, 2019, scheduled construction was six months behind. By fall 2019, nearly a thousand Requests for

1 9 U.S.C. §§ 1-16 is commonly referred to as the Federal Arbitration Act.

Information and Construction Products Regulation had been issued, revealing significant issues with contractual documents and drawings. ¶5. McInnis avers that Brasfield & Gorrie’s failure to coordinate and facilitate the work of the various subcontractors worsened as the project progressed, and Brasfield & Gorrie experienced turnover in management. For example, the sheetrock contractor and the plumbing contractor were required to complete the patient rooms of the upper floors in specific sequence coordinated with all trades, but allegedly no attempt was made for sequencing. Additionally, there were instances in which patient room electrical conduit installations were delayed because windows and headwalls had not yet been installed by other subcontractors. The failure of these and other predecessor activities allegedly delayed McInnis’s work, which was not on the path toward completion, supposedly through no fault of its own. ¶6. Construction issues were amplified when on March 11, 2020, Mississippi experienced its first reported case of COVID-19. Five days later, the National Electrical Contractors Association announced a national disease emergency response agreement with the National Electrical Union. McInnis received such notice and informed Brasfield & Gorrie. On March 24, 2020, McInnis notified Brasfield & Gorrie of workplace safety concerns related to COVID-19, but these concerns were supposedly ignored. Brasfield & Gorrie, realizing that the predecessor activities had resulted in substantial delays, sought to make up for lost time by “squeezing” McInnis. As the threat of the pandemic increased, Brasfield & Gorrie

declined to implement additional health and safety measures2 and instead increased contribution to McInnis’s workforce through workforce contractor workers from an outside workforce management group. The intermingling of new employees from a job site that had been shut down due to COVID-19 created fear among some workers. As the project and its timeline deteriorated, one of Brasfield & Gorrie’s supervisors, Defendant James Mapp, allegedly destroyed McInnis’s materials on the job site, evidencing the growing animosity between the companies. ¶7. On April 1, 2020, Governor Tate Reeves instituted a shelter in place order in response to the ongoing pandemic, requiring certain nonessential businesses to close and recommending social distancing to reduce the spread of the coronavirus in Mississippi. Executive Order Number 1463 provided that building and construction should be halted during the ongoing pandemic except for maintaining essential preexisting infrastructure. The children’s hospital was not classified as an existing infrastructure as it was a nonoperational work in progress and thus was not subject to the executive order’s exception to the governmental shutdowns. ¶8. By May 8, 2020, McInnis had suffered an approximately 40 percent loss in its workforce due to employees testing positive for COVID-19. Despite the decrease in the available workforce, Brasfield & Gorrie demanded McInnis perform under its contractual obligation. McInnis took measures to continue the work, including making $94,000 in

2 In March 2020, the secretary of the United States Department of Health and Human Services issued a declaration regarding COVID-19 pandemic, requiring counter measures such as N95 respirators/face shields and an infection control program.

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McInnis Electric Company v. Brasfield & Gorrie, LLC and James Mapp, (Mich. 2023).

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