Federal Judge Stays Golden Pass Lawsuit Pending Arbitrator’s Joinder Decision

HOUSTON (LN) — U.S. District Judge Keith P. Ellison on Friday stayed all proceedings in Golden Pass Pipeline LLC’s suit against ISC Constructors LLC, deferring to an American Arbitration Association arbitrator’s upcoming decision on whether the subcontractor can be joined contractor’s pending arbitration.

The dispute centers on the Golden Pass Pipeline Project, a construction effort involving two compressor stations that was completed in June 2025, nine and a half months behind schedule. Golden Pass and prime contractor Performance Contractors Inc. dispute responsibility for the delay.

Golden Pass sued ISC in April, seeking a declaration that the subcontractor has no agreement to arbitrate with the pipeline owner and an injunction barring ISC from participating proceedings. Golden Pass argued that because it is not a party to the September 8, 2010 subcontract between PCI and ISC, it cannot be forced into arbitration with the subcontractor.

However, Ellison noted that PCI’s own arbitration demand against Golden Pass explicitly included a “pass-through claim from its subcontractor, ISC” and requested that the matter be joined with ISC’s separate demand.

“Even if this Court were to conclude that ISC had no legal basis upon which to include Golden Pass in its initial arbitration demand, this conclusion would be of no practical consequence if the Arbitrator concluded that PCI could join ISC as a party in its arbitration proceeding against Golden Pass,” Ellison wrote.

The judge pointed to the subcontract’s flow-down provisions, which allow ISC to institute actions to recover damages by reason of any deduction or refusal to pay. Ellison wrote that an arbitrator could reasonably conclude ISC should be joined arbitration between PCI and Golden Pass.

Golden Pass had also filed a motion for a preliminary injunction to stay the arbitration itself, but Ellison declined to rule on that request, stating it would be “unwilling to consider the merits of Golden Pass’ requests for declarative and injunctive relief against ISC before the R-7 Arbitrator has made a determination as to whether ISC can be properly joined as a party to PCI’s pending arbitration against Golden Pass.”

The court granted ISC’s motion to stay the federal case pending the R-7 arbitrator’s decision on joinder and consolidation. The parties are ordered to confer and submit an update to the court within ten days after the arbitrator issues a decision.

The R-7 arbitrator is scheduled to hear oral argument on the question of joinder and consolidation on May 20, 2026.