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Conart, Inc. v. Hellmuth, Obata + Kassabaum, Inc.

Citations: 504 F.3d 1208; 2007 U.S. App. LEXIS 24199; 2007 WL 2994001Docket: 06-16665

Court: Court of Appeals for the Eleventh Circuit; October 16, 2007; Federal Appellate Court

Original Court Document: View Document

Narrative Opinion Summary

In this case, ConArt, Inc. initiated a legal action against Hellmuth, Obata, Kassabaum, Inc. in response to a dispute over a construction project at the University of Alabama. The conflict arose from claims assigned to Hellmuth by the general contractor, which were bound by an arbitration clause. ConArt sought a declaratory judgment that these claims were non-arbitrable and sought to enjoin arbitration. The district court found the claims arbitrable and denied ConArt's requests, prompting an appeal. The appellate court addressed jurisdictional issues, focusing on whether the order was appealable under 28 U.S.C. § 1291 and 28 U.S.C. § 1292(a)(1). However, the court determined that the specific statute, 9 U.S.C. § 16(b), which limits appeals from interlocutory orders regarding arbitration, precluded jurisdiction. The court emphasized a statutory interpretation principle where specific statutes take precedence over general ones, reinforcing the inapplicability of § 1292(a)(1). The appeal was dismissed due to lack of jurisdiction, underscoring that the denial of an injunction against arbitration is reviewable post-arbitration, which aligns with the overarching intent of the Federal Arbitration Act to limit interlocutory appeals.

Legal Issues Addressed

Arbitrability of Assigned Claims

Application: The court determined that the claims assigned to Hellmuth by the general contractor were subject to arbitration as per the arbitration clause, and the district court's decision to deny an injunction against arbitration was upheld.

Reasoning: The district court ruled that the assigned claims were arbitrable and denied ConArt’s requests.

Cohen Collateral Order Doctrine

Application: The court rejected the application of the Cohen collateral order doctrine, noting that orders denying injunctions against arbitration are not effectively unreviewable post-arbitration and thus do not warrant interlocutory appeal.

Reasoning: ConArt's argument for treating the order denying an injunction against arbitration as a final order under the Cohen collateral order doctrine fails because such an order is reviewable post-arbitration.

Jurisdiction under 28 U.S.C. § 1291 and 28 U.S.C. § 1292(a)(1)

Application: The court concluded it lacked jurisdiction to hear the appeal as the order was not final under 28 U.S.C. § 1291, and 28 U.S.C. § 1292(a)(1) was inapplicable due to the specific provisions of 9 U.S.C. § 16(b)(4).

Reasoning: The appealability of the order was governed by 9 U.S.C. § 16, which restricts appeals from interlocutory orders that refuse to enjoin arbitration.

Specific vs. General Statute Conflict

Application: The court applied the principle that a specific statute, such as 9 U.S.C. § 16(b), acts as an exception to a general statute like 28 U.S.C. § 1292(a)(1), resolving conflicts in favor of the specific statute.

Reasoning: In cases where a general statute conflicts with a specific statute, the specific statute is treated as an exception to the general one.