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TOWN OF CHESAPEAKE BEACH v. PESSOA

No. 81, September Term, 1991.

330 Md. 744 (1993)

625 A.2d 1014

TOWN OF CHESAPEAKE BEACH v. PESSOA CONSTRUCTION COMPANY, INC.

Court of Appeals of Maryland.

June 11, 1993.

Attorney(s) appearing for the Case

Daniel Karp (Allen, Johnson, Alexander & Karp, all on brief), Baltimore, for petitioner.

J. Richard Margulies, Rockville (Jerry C. May, Fairmont Heights), both on brief, for respondent.

Argued before MURPHY, C.J., and ELDRIDGE, RODOWSKY, McAULIFFE, CHASANOW, KARWACKI and CHARLES E. ORTH, Jr. (retired, specially assigned), JJ.

McAULIFFE, Judge.

In 1984, the Town of Chesapeake Beach (the Town) entered into a construction contract with Pessoa Construction Company, Inc. (Pessoa). On 2 January 1986, before construction was completed, the Town declared Pessoa in default and terminated its right to continue work. On 19 May 1989, Pessoa filed a demand for arbitration with the American Arbitration Association. The Town promptly filed a petition in the Circuit Court for Calvert County to stay or...

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