Originally from:

Journal of American Arbitration (JAA) - Vol. 3, No. 2

Preview Page

ARTICLES

Binding Arbitration and Specific Performance
Under the FAA: Will This Marriage of
Convenience Survive?
By Kenneth F. Dunham

I. INTRODUCTION
In Alabama, a homeowner purchased a condominium at an auction
and encountered numerous problems.1 The homeowner’s problems with
the auction company could not be resolved, and the homeowner sued the
auction company for negligence and fraud.2 The auction company
moved the court to stay the lawsuit and compel arbitration under an
agreement between the auction company and the condominium
homeowner’s association.3 In another case, a car buyer brought a lawsuit
against a car dealer for suppression and misrepresentation.4 The sales
contract contained an arbitration agreement and the car dealer moved the
court to compel arbitration.5 Also, a Delaware general contractor
subcontracted a roofing project to a Tennessee roofing contractor for a
project in Alabama.6 Subsequently, the Tennessee roofing contractor
subcontracted the project to an Alabama contractor.7 When a problem
with payment arose, the Tennessee contractor sued the owner of the
property where the work was performed, and the owner moved the court
to compel arbitration.8 It was a few decades ago that arbitration
agreements were only common in construction contracts, labor contracts,
and in some commercial sales contracts,9 but, as the foregoing examples
demonstrate, it seems arbitration agreements are appearing everywhere
these days.