Tribal Casino Gaming Enterprise v. W.G. Yates & Sons Constr. Co., 2016 U.S. Dist. LEXIS 86100 (W.D. NC July 1, 2016)
Tribal Casino Gaming Enterprise (the “Casino”) contracted with joint general contractors, W.G. Yates & Sons Construction Company and Rentenback Constructors Inc. (the “Contractor”) for an expansion of the Casino’s facility in Cherokee, North Carolina. Following completion, two parking decks constructed during the project partially collapsed. The Casino contended that the parking deck failures resulted from the Contractor’s faulty work.
The Casino submitted a demand for arbitration with the American Arbitration Association (“AAA”), asserting contractual, tort, and statutory claims against the Contractor. The Contractor filed a motion with the Western District of North Carolina seeking to stay the AAA arbitration. Citing the doctrine of contractual impossibility and due process concerns, the Contractor argued that the arbitration clause in the parties’ contract was unenforceable because it required that the arbitral panel issue an award within 30 days, which the Contractor contended was unreasonable under the circumstances of the complex dispute. Continue reading “Federal Court in North Carolina Holds That Impracticability of Arbitration Clause Which Required Decision Within 30 Days of Selection of Arbitrators Did Not Render It Invalid Because Incorporated AAA Rules Allowed for Extension of Arbitration Period”