Magazine article Dispute Resolution Journal

Construction: Manifest Disregard of the Law

Magazine article Dispute Resolution Journal

Construction: Manifest Disregard of the Law

Article excerpt

The Court of Appeals of Tennessee declined to adopt nonstatutory grounds to review an arbitration award under the Federal Arbitration Act.

The dispute involved a contract to construct a motel for Franklin Landmark LLC. Warbington Construction, the general contractor, had not completed punch list items when it submitted its request to Franklin Landmark for final payment. When Franklin Landmark refused to pay, claiming Warbington did not complete all of its responsibilities under the contract, the contractor commenced an arbitration.

During arbitration Franklin Landmark argued that Warbington was entitled to recover only actual documented expenses because it was not properly licensed under the state licensing law. Warbington's license only permitted it to enter into contracts for $1 million or less, while this contract was for $1.4 million. Warbington countered that it was engaged in a joint venture with another contractor whose license was unlimited, and that the combined monetary limits on the two licenses allowed Warbington to undertake this project.

There was conflicting proof as to whether a joint venture existed and the arbitrator did not make a specific finding on this issue. The arbitrator awarded Warbington $75,331 on its substantive claims plus prejudgment interest. The arbitrator also awarded $14,915 to Franklin Landmark on its counterclaim. Warbington moved to confirm the award under the Tennessee Uniform Arbitration Act. Franklin Landmark moved to vacate on the ground that the arbitrator manifestly disregarded Tennessee's licensing law and its public policy. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.