Fifth Circuit Refuses to Overturn Florida District Court Arbitration Ruling

The Fifth Circuit Court of Appeals affirmed a Western District of Texas court’s dismissal of a suit for lack of personal jurisdiction over subcontractors. The business agreement between Sayers Construction and its subcontractors began well enough. The subcontractors picked up orders from Sayers’s Florida offices then performed the work on a site in Florida. Afterward, they submitted invoices to Sayers’s Texas offices, and Sayers paid within 45 days of receipt. The process worked well until Sayers stopped paying the invoices and the subcontractors stopped working. The subcontractors then filed an arbitration demand with the American Arbitration Association (AAA) as outlined in the contract. The Florida arbitrator found in favor of the subcontractors, which is when Sayers filed suit in the Western District of Texas to vacate the arbitration award. Read the details of the case and why both the Western District of Texas and the federal appeals court dismissed the suit here.