C-Sculptures v. Brown

The Supreme Court granted certiorari to review the court of appeals decision affirming the circuit court's order that upheld an arbitration award. The underlying dispute arose from a construction contract whereby general contractor respondent C-Sculptures, LLC agreed to build a home for Petitioners Gregory and Kerry Brown. The contract price was in excess of $800,000. However, Respondent only possessed what is referred to as a Group II license, limiting Respondent to construction projects that did not exceed $100,000. A dispute arose between the parties, and Respondent filed an action in circuit court seeking to enforce a mechanic's lien against Petitioners. Upon Petitioners' motion and pursuant to an arbitration clause in the parties' contract, the circuit court matter was stayed pending arbitration. Petitioners sought to have the matter dismissed after they learned Respondent held only a Group II license. The arbitrator was apprised of the applicable law, but nevertheless denied Petitioners' motion to dismiss "after due consideration of all the evidence and authorities presented by the parties in this Arbitration." Respondent prevailed at arbitration, receiving an award of damages and an award of attorney's fees as the prevailing party pursuant to S.C. Code Ann. section 29-5-10(b) (Supp. 2012). Petitioners challenged the arbitration award, contending the arbitrator's denial of their motion to dismiss amounted to a manifest disregard of the law. Following adverse decisions in the circuit court and the court of appeals, the Supreme Court granted a writ of certiorari. Petitioners argue the court of appeals erred in refusing to find the arbitrator manifestly disregarded the law in declining to dismiss the action. Upon review, the Court agreed, and reversed the appellate court and directed that judgment be entered for Petitioners. View "C-Sculptures v. Brown" on Justia Law