Construction Contract Dispute ends in Arbitration

Veolia North America Operating Services, LLC v. Consolidation Coal Company

Contract Dispute; Construction 

Arbitration in favor or Plaintiffs' 

Veolia was awarded approximately $4.6 million in arbitration against Consolidated Coal Company on July 31, 2015.  The arbitration arose out of a contract between Veolia and CCC under which Veolia agreed to operate and maintain a waste-water treatment facility for a series of coal mines owned by CCC.  Veolia was to be paid a higher monthly fee after the facility passed a performance test, for which CCC and its design-build contractor were responsible.  CCC contended that the facility did not pass the performance test and, therefore, refused to pay Veolia the higher fee.  Veolia sued CCC to recover the difference between the two monthly fees because Veolia was required to perform its services as though the facility had passed the performance test.  After five-day arbitration in Charlottesville, VA, the arbitrator awarded Veolia all of its overdue fees, plus interest, ordered CCC to pay the arbitrators’ fees, and declared that Veolia was entitled to the higher fee for the duration of the contract.  Veolia was also awarded its fees and costs as the substantially prevailing party under the parties’ agreement.