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Disputes Clause Did Not Negate Arbitration Arbitration; Claims Administration

Tuesday, February 03, 2004 11:57 am


A Texas court has ruled that a clause stipulating resolution of disputes in "a court of competent jurisdiction" did not conflict with or negate an arbitration clause.

The Kirbyville Consolidated Independent School District awarded a contract to New Concept Construction Co., Inc. for construction of a high school gymnasium. The contract included a clause entitled "Disputes"which said the contract would be interpreted in accordance with the laws of the state of Texas.

The Disputes clause also stated: "The Contractor shall not institute any action or proceeding in any way relating to this agreement against the Owner except in a court [...]

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