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Arbitration Clause Can Be Unilateral, But Acting Party Can't Jump To Litigation

Sunday, January 04, 2009 04:54 pm

Arbitration Clause Can Be Unilateral, But Acting Party Can't Jump To Litigation Arbitration Southeastern Stud & Components, Inc. v. American Eagle Design Build Studios, et al. United States District Court for the Eastern District of Arkansas, Western Division 2008 U.S.Dist.4:07CV00593¬WRW(October 9, 2008)

A state court found that a contractor had waived its right to arbitrate when it went too far down the road toward court procedures to turn back.

Southeastern Stud & Components, Inc.(SE Stud)con¬tracted with American Eagle Design Build Studios, LLC (American Eagle)to fabricate steel framing and erect 98 buildings for construction at the Little Rock Air Force Base in Arkansas.When the parties disputed the amount owed for the completed work, American Eagle filed a motion to compel arbitration, claiming that the arbitration clause in the subcontract shouldn't be enforced.SE Stud countered that the motion should be denied because(1) American Eagle waived its right to arbitrate,(2)com¬pelling arbitration would prejudice SE Stud, and(3)the contrac [...]

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