Shea-Kiewit-Kenny

VOGEL (Miriam A.), J.

At the planning stage of a large construction project, the ower and contractor sometimes agree to organize a three-member Disputes Resolution Board (DRB) to offer recommendations for the resolution of the disputes that will inevitably arise during construction. Typically, the owner and contractor each designate one member of the DRB and those two members, in turn, select the third. In the case before us, a DRB was created in this manner and it functioned for about two years—until the owner exercised its contractual right to terminate its appointee for cause. The contractor objected, contending there was no “cause” for the termination, and the owner then filed this action for declaratory relief. The owner prevailed at trial and the contractor now appeals. We affirm, rejecting the contractor’s contention that the termination for cause of a DRB member is tantamount to the disqualification for cause of a judge or an arbitrator. As we explain, the DRB is a creature of contract, with limited powers to make recommendations for the resolution of disputes, not a constitutional or statutory body vested with the power to making binding decisions. “Cause” must…