CONTACTS 
0201 - Bishop, Barry, Howe, Haney & Ryder 415 421 8550 fax 362 4730
020101 - Mr. William C. Last, Jr., Esq.

SUBJECTS
AAA Rudd & Son v. Barnes, 74 E 110 002
Must Owner be a party?

0404 -    ..
0405 - Summary/Objective
0406 -
040601 - Follow up message from Bill Last on 940610. ref SDS 9 0877
040602 -
040603 - Seem to have a just released case on point.
040604 -
040605 -
040606 -
0407 -
0408 -
0409 - Discussion
0410 -
041001 - Bill advised that the case he mentioned last week, ref SDS 9 0877,
041002 - just came down. The court ruled that where a GC files a DFA against a
041003 - subcontractor to pass through a cross- complaint by an owner, the
041004 - subcontractor must join where the terms of the prime contract
041005 - requiring the GC and owner to arbitrate, were incorporated by
041006 - reference in the contract between the owner and the GC.
041007 -
041008 -     Evidently, the subcontractor wanted to avoid the arbitration by
041009 -     relying on a specific arbitration clause in its agreement with the
041010 -     GC.  The court said the arbitration provision in the prime con-
041011 -     tract governed, because it was incorporated by reference.
041012 -
041013 - In our case, the contract between the subcontractor and the GC is not
041014 - incorporated by reference in the contract between the owner and the
041015 - GC.
041016 -
041017 -     I think however that industry practice compells that the court's
041018 -     reasoning be applied, since the intent of the parties is for the
041019 -     responsible party to be liable to the injured party.
041020 -
041021 -     The owner requires and expects its contract provisions to be
041022 -     incorporated into the subcontracts, and so must be prepared to use
041023 -     those procedures to resolve disputes that arise from performing
041024 -     all of the contract provisions.
041025 -
041026 -  ..
041027 -
041028 - Call him tomorrow after 10a to confirm meeting to show SDS.
041029 -
041030 -
041031 -
041032 -