Ambac Assur. Corp v. Knox Hills LLC, 2018 Ky. App. Lexis 188 (June 15, 2018)
This case involves a February 1, 2007 design/build agreement governing the rights of the several parties involved with a military housing construction and renovation project at Fort Knox, Kentucky. Knox Hills, LLC (the owner) filed a breach of contract action against Ambac Assurance Corporation (the senior lender of the project) relating to what it characterized as Ambac’s wrongful withholding of consent to a change order that would have substantially reduced the scope of the project. Knox Hills then sought an order staying the proceedings and compelling Ambac to arbitrate. The circuit court granted the motion and, following an arbitration, entered an order confirming the arbitrator’s award in favor of Knox Hills. Ambac then appealed the court’s order.
On appeal, the Kentucky Court of Appeals focused on two questions: (1) whether the court or the arbitrator should have determined whether arbitration was required between Knox Hills and Ambac, and (2) whether arbitration was actually required.
Continue Reading Kentucky Court of Appeals Draws a Distinction Between Substantive and Procedural Questions of Arbitrability, and Explains the Proper Role for the Courts