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Southern Constructors v. Loudon County Board of Education

58 S.W.3d 706 (2001)

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Southern Constructors v. Loudon County Board of Education

Tennessee Supreme Court
58 S.W.3d 706 (2001)

DD

Facts

The Loudon County Board of Education (the board) (defendant) contracted with Southern Constructors, Inc. (SCI) (plaintiff) for additions and renovations to school buildings. Due to an electrical disruption caused by SCI’s subcontractor, mold grew in one of the buildings. The board withheld payments to SCI to pay for the removal of mold growth in the building. SCI demanded payment of the withheld amount, and the parties agreed to submit their claims to arbitration. The arbitrator found in favor of the board but awarded a small portion of the withheld amount to SCI. SCI subsequently filed suit, seeking to set aside the arbitration award. SCI contended that the board lacked the power to enter into arbitration agreements. The trial court denied the board’s motion for summary judgment. The board appealed.

Rule of Law

Issue

Holding and Reasoning (Barker, J.)

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