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Don't Wait To Arbitrate -- Or Waive Your Right To Do So

Friday, February 12, 2010 03:05 am

 

Arbitration

Southeastern Stud & Components, Inc. v. American Eagle Design Build Studios, LLC et al

Don't count on state law to bar that arbitration clause in your contract. It is likely enforceable, and you must use the right to arbitrate -- or lose it.

American Eagle Design Build Studios, LLC (American Eagle) was the prime contractor for a U.S. Air Force project in Little Rock, Arkansas. American Eagle hired Southeastern Stud & Components, Inc. (Southeastern) as a subcontractor supplying materials and labor. Southeastern sued American Eagle over a payment dispute. American Eagle did not pursue arbitration initially even though the subcontract agreement contained an arbitration clause that gave the contractor the sole option to submit the dispute to arbitration. Instead, American Eagle answered Southeastern's [...]

 
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