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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND DAVID DIESSELHORST, t/a THE DIESSELHORST GROUP, Plaintiff v. MUNSEY BUILDING, L.L.L.P., Defendant : : : : : : : : ...o0o...

CIVIL NO. AMD 04-3302

MEMORANDUM OPINION This diversity case, in which plaintiff seeks a declaratory judgment, arises out of a dispute over the performance of a contract for architectural design and construction administration services. The dispositive issue is whether the dispute is subject to arbitration. I. There is no dispute as to the underlying facts of the parties' relationship. Plaintiff David Diesselhorst, individually and trading as The Diesselhorst Group ("Diesselhorst"), entered into an oral agreement with Richard Brinker ("Brinker") in the spring of 1999 to provide architectural services pertaining to the design and planning of, and obtaining a building permit for, the renovation of a historic bank building in downtown Baltimore known as the Munsey Building.1 Diesselhorst produced a set of approximately thirty permit

According to Diesselhorst, the oral agreement is "consistent in many respects with" an April 16, 1999, unexecuted document that purports to be a contract between Diesselhorst and an as yet to be formed entity called Omega Development III, L.L.C. ("Omega"), to be owned by Brinker. Records of the Maryland Department of Assessments and Taxation reflect that Omega was formed on September 15, 1999. The April 16, 1999, document took the form of an American Institute of Architects ("AIA") "Standard Form of Agreement Between Owner and Architect for Housing Services."

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documents for the Munsey Building project ("the Project") in November 1999. In or about July 2000, Brinker transferred some or all of his interest in the Project to defendant, Munsey Building, L.L.L.P. ("Munsey"), an entity formed by Brinker and other investors for the purpose of completing the renovation. A building permit for the Project was obtained on July 19, 2000. On December 1, 2000, Diesselhorst and Munsey entered into a written contract (the "Agreement," a copy of which is attached to the complaint) which obligates Diesselhorst to provide "Basic Services," which span a "Design Phase," a "Construction Documents Phase," and a "Construction Phase -- Administration." The Agreement is in the form of an American Institute of Architects ("AIA") "Standard Form of Agreement Between Owner and Architect for Housing Services." The Agreement obligates Diesselhorst to furnish, inter alia, "Construction Documents (plans and specifications) . . . sufficient to obtain building permits" and "overall project coordination with . . . consultants during the design and construction document phase." Agreement Art. 12. As reflected in the Agreement, Diesselhorst had been paid $36,500 prior to the date of the Agreement, and such amount was "credited to [Munsey's] account." Agreement

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Maryland Law