Opinion ID: 1484430
Heading Depth: 1
Heading Rank: 3

Heading: Construction begins and disputes arise.

Text: Kuhn began construction and, in July 2007, requested guidance from DSPC to resolve numerous problems. DSPC failed to respond adequately to these requests and, on March 14, 2008, Kuhn started invoicing DSPC for additional work that it undertook to complete the project. DSPC summarily rejected Kuhn's billing and, on November 8, 2008, DSPC's executive director attempted to institute a multi-party hearing to consider Kuhn's complaints and assess fault among Kuhn and other contracting parties. The executive director asserted the authority to call the meeting under the referee clause. Kuhn immediately objected, claiming that the executive director does not have authority to arbitrate claims under the referee clause or the Delaware Uniform Arbitration Act. Kuhn refused to participate in any arbitration proceeding. Kuhn asserted that the referee clause only governs day-to-day dispute resolution issues, and that neither Kuhn nor DSPC initially intended the referee clause to act as a form of arbitration provision. DSPC then sent Kuhn a notice of its intent to arbitrate and a demand for arbitration. Kuhn responded by filing a complaint for injunctive relief, pursuant to 10 Del. C. § 5703(b). On January 14, 2009, DSPC filed motions to compel arbitration and to dismiss, pursuant to Court of Chancery Rule 12(b)(6). After oral argument on February 9, 2009, DSPC agreed to withdraw the multi-party proceeding and proceed with arbitration solely with Kuhn. The Vice Chancellor held that the referee clause present in the dispute arising in Ruckman and Hansen, Inc. v. Delaware River and Bay Authority, [1] was almost identical to DSPC's referee clause, therefore, and that Ruckman controlled Kuhn and DSPC's dispute. He then granted DSPC's motions to compel arbitration and to dismiss. Kuhn appeals from the order granting those motions.