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)

Emily Pokora headshot
  • Written by Emily Pokora, JD

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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Casebooks

Alternative Dispute Resolution

Key Terms

  • Permanent InjunctionA final order of a court requiring a person or entity to refrain from certain activities permanently or take certain actions (usually to correct a nuisance) until completed. A permanent injunction is distinguished from a preliminary injunction, which the court issues pending the outcome of a lawsuit or petition asking for the permanent injunction.
  • Motion to compelA request to the court to require the opposing party or a third party to take some action.
  • Unauthorized Practice of LawGiving legal advice or representation without valid licensure.
  • Motion to WithdrawA motion filed with the court by counsel seeking to terminate his or her representation of a party.
  • ArbitrationA form of alternative dispute resolution that is more formal than mediation but subject to fewer formal rules than a traditional court case. In arbitration, the parties present their cases and a neutral third party, the arbitrator(s), makes a final judgment, which is not appealable.

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