Willow Creek Associates v. Hy Barr Incorporated
Willow Creek Associates v. Hy Barr Incorporated, 2021 UT App 116 (Tenney, J.)
Contract
A property owner hired a contractor to do a remodel. The owner and contractor entered into an agreement that included a clause requiring disputes “arising out of or relating to” the contract to be resolved through arbitration. A subcontractor sued the property owner in district court for nonpayment, and the property owner started the arbitration process against the contractor. The property owner also asserted cross-claims against the contractor in the district court action. The district court dismissed the cross-claims against the contractor. The Utah Court of Appeals affirmed, holding:
- The phrase “arising out of or relating to” should be interpreted broadly to include the cross-claims that the property owner asserted in the district court when those cross-claims that the contractor failed to do things under the contract.