Opinion ID: 4468158
Heading Depth: 2
Heading Rank: 3

Heading: Attorney Fees Pursuant to the Contract

Text: [¶34] Finally, GBT argues that the court erred when it concluded that, apart from an award of attorney fees that is available pursuant to the prompt pay statutes, F&W was also entitled to attorney fees pursuant to the terms of the parties’ contract.14 “We review the meaning of a contract de novo and interpret an unambiguous provision according to the plain meaning of its terms.” Kondaur Capital Corp. v. Hankins, 2011 ME 82, ¶ 19, 25 A.3d 960. Although the court concluded that F&W is entitled to its attorney fees and expenses, at oral 14 argument the parties indicated that they had not yet filed submissions addressing the amount of awardable fees and expenses. 20 [¶35] The contract documents provided for a tiered approach to “dispute mitigation or resolution.” The first of the dispute resolution mechanisms was for the parties to engage in “good faith direct discussions.” If a dispute remained unresolved after those discussions, the parties were to engage in mediation. The contract went on to provide that, if the issue was still unresolved, the parties then were to submit the matter to a “binding dispute resolution procedure,” prescribed specifically as arbitration.15 The arbitration provisions of the parties’ contract stated: 12.4 BINDING DISPUTE RESOLUTION If the matter is unresolved after submission of the matter to a mitigation procedure or to mediation, the Parties shall submit the matter to the binding dispute resolution procedure selected below. Arbitration using the current Construction Industry Arbitration Rules of the AAA or the Parties may mutually agree to select another set of arbitration rules. The administration of the arbitration shall be as mutually agreed by the Parties. If the Parties cannot agree, then it shall be administered by AAA. 12.4.1 The costs of any binding dispute resolution procedures and reasonable attorneys’ fees shall be borne by the non-prevailing Party, as determined by the adjudicator of the dispute. 12.4.2. VENUE The venue of any binding dispute resolution procedure shall be the location of the Project, unless the Parties agree on a mutually convenient location. The parties’ submissions on appeal suggest that, notwithstanding this contractual provision, 15 they did not avail themselves of the binding dispute resolution process. 21 (Emphases added.) [¶36] The contract therefore unambiguously states that the nonprevailing party will bear attorney fees and costs related to “binding dispute resolution procedures,” with “the binding dispute resolution procedure” contractually specified to be arbitration. The attorney fees provision contained in this “binding dispute resolution” section of the contract plainly does not contemplate an award of attorney fees outside the context of arbitration, and the trial court therefore erred when it concluded otherwise.16 This, however, does not affect the court’s determination that F&W’s is entitled to its attorney fees and costs pursuant to separate authority, namely, the prompt payment statutes.