NISHA, LLC v. TriBuilt Construction Group, LLC

388 S.W.3d 444, 2012 Ark. 130 (2012)

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NISHA, LLC v. TriBuilt Construction Group, LLC

Arkansas Supreme Court
388 S.W.3d 444, 2012 Ark. 130 (2012)

EP

Facts

General contractor TriBuilt Construction Group, LLC (TriBuilt) (plaintiff) entered a construction contract with NISHA, LLC (defendant). TriBuilt’s construction contract was assigned to Centennial Bank (Centennial) (defendant) to secure a mortgage on the property. When TriBuilt filed suit against NISHA and Centennial, NISHA filed a motion to compel arbitration under the contract. TriBuilt’s counsel moved to withdraw. The circuit court granted NISHA’s motion to compel and counsel’s motion to withdraw from representation of TriBuilt. TriBuilt’s president, who was not a lawyer, provided notice that he would represent the company at the arbitration. NISHA and Centennial filed for a permanent injunction to preclude the president from representing the company, arguing that this would constitute the unauthorized practice of law. International Fidelity Insurance Company filed a response to the request for injunction, arguing that TriBuilt could represent itself and that this was not the unauthorized practice of law under American Arbitration Association rules or Arkansas law. The court granted the injunction as to the court proceedings but not the arbitration. The court reasoned that a nonlawyer could appear on behalf of TriBuilt at the arbitration and that the arbitrator could decide the issue. NISHA and Centennial appealed.

Rule of Law

Issue

Holding and Reasoning (Brown, J.)

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