Yates Paving & Grading Co. Inc. v. Bryan County, Ga.

Yates Paving & Grading Company “Yates” appeals from an order of the Superior Court of Chatham County in which the court denied Yates’ motion to compel further arbitration on the issue of attorney fees and costs incurred when Bryan County “County” appealed an arbitration award arising from a road construction contract between the parties. For the reasons that follow, we reverse the court below. The County and Yates entered into a written contract, drafted by the County, to construct and make improvements to public roads in the Holly Hill subdivision in Richmond Hill. The contract included a termination clause which stated that, upon termination, CONTRACTOR shall be paid for all work executed and any expense sustained plus reasonable termination expenses, which will include, but not be limited to, direct, indirect, and consequential costs including, but not limited to fees and charges of engineers, architects, attorneys and other professionals and court and arbitrations costs. In addition, the contract contained a binding arbitration clause which stated,

All claims, disputes and other matters in question between OWNER and CONTRACTOR arising out of, or relating to the Contract Documents or the breach thereof . . . will be decided by arbitration. After Yates began construction, the County terminated Yates’ employment and hired a third party to complete the project. Yates demanded arbitration as expressly provided in the contract. By letter, Yates also put the County on notice of its intent to seek enforcement of its claims under the Prompt Pay Act, OCGA § 13-11-1, et seq., including its intent to seek attorney fees allowable under the Act, which states,