{"id":902874,"date":"2024-06-25T15:18:00","date_gmt":"2024-06-25T21:18:00","guid":{"rendered":"https:\/\/www.myconstructionexpert.com\/blog\/?p=902874"},"modified":"2024-06-25T15:18:04","modified_gmt":"2024-06-25T21:18:04","slug":"arbitration-finality-south-carolina-curbs-arbitration-panel-authority","status":"publish","type":"post","link":"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-finality-south-carolina-curbs-arbitration-panel-authority\/","title":{"rendered":"The Finality of Arbitration: Supreme Court of South Carolina Curbs Arbitration Panel\u2019s Authority"},"content":{"rendered":"\n<p>David W. Owen and Will White | <a href=\"https:\/\/www.buildsmartbradley.com\/2024\/06\/the-finality-of-arbitration-supreme-court-of-south-carolina-curbs-arbitration-panels-authority\/?utm_source=Bradley+Arant+Boult+Cummings+LLP+-+BuildSmart&amp;utm_campaign=0ec4bdaf00-RSS_EMAIL_CAMPAIGN&amp;utm_medium=email&amp;utm_term=0_b504caf31b-0ec4bdaf00-78863422\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">BuildSmart<\/a><\/p>\n\n\n\n<p>One of the several attractive aspects of <a href=\"https:\/\/www.myconstructionexpert.com\/blog\/construction-arbitration-emerging-trends\/\">arbitration<\/a> is the finality of the decision. With limited grounds to appeal or vacate an arbitration award, litigants can generally expect a final award to end any controversy between them. There are, however, rare situations where an arbitration decision is reconsidered by a court and overturned. In a notable decision, the Supreme Court of South Carolina did just that in the case of\u00a0<em>Waldo v. Cousins<\/em>, No. 2022-000134, 2024 WL 1900583 (S.C. May 1, 2024).<\/p>\n\n\n\n<p>In&nbsp;<em>Waldo<\/em>, the petitioner was a broker in charge of a realty company that represented the buyers of golf courses. The respondent, a broker in charge of the realty company that represented the golf course sellers, sued the petitioner, the petitioner\u2019s firm and agents, and the buyers and sellers of the courses for commission on the sale. In arbitration, despite the respondent not having a written agency agreement as required under S.C. Code Ann. \u00a7 40-57-139(G) (2011) [the \u201cact\u201d], the arbitration panel awarded the respondent half of the commission.<\/p>\n\n\n\n<p>As a justification for the decision, the arbitration panel cited four decisions from the Supreme Court of South Carolina and the South Carolina Court of Appeals, all of which were decided prior to and superseded by the act\u2019s passing. Despite being aware of the act and having \u201cin hand the unappealed circuit court order dismissing similar claims arising from the same transaction on the ground that \u00a7 40-57-139(G) had rendered oral and implied contracts for real estate commissions unenforceable,\u201d the panel focused on the previously decided cases and awarded damages.<\/p>\n\n\n\n<p>In overturning the arbitration panel\u2019s decision, the state Supreme Court noted the rarity of such a decision. Beginning by stating that \u201cwe may only vacate the award where the arbitrator knew of well-defined, explicit, and clearly applicable controlling law, yet still refused to apply it,\u201d the court determined that the arbitrator \u201cexceeded his power by manifestly disregarding or perversely misconstruing the law governing the dispute.\u201d Accordingly, the panel\u2019s decision did not have an \u201c\u2018arguably colorable\u2019 basis\u201d in the law.<\/p>\n\n\n\n<p>The Supreme Court acknowledged the high bar for overturning an arbitration award. However, in support of its decision, the Supreme Court noted, \u201c[w]e have progressed from the days\u201d where the arbitrator may rule with \u201cdespotic power,\u201d and the court may overturn a decision where the arbitrator \u201cmanifestly disregarded\u201d several statutes and case law.<\/p>\n\n\n\n<p>The conclusion from\u00a0<em>Waldo<\/em>\u00a0is one of caution in the supremacy of arbitration, yet confidence in the arbitration decision-making process. Courts generally defer to the decision of an arbitrator, but that deference is not universal, and there are instances where a \u201creckless flouting of the law\u201d may result in vacatur of a final award.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"\/>\n\n\n\n<p><strong>When one of your cases is in need of a construction expert, estimates, insurance appraisal or umpire services in defect or insurance disputes &#8211; please call Advise &amp; Consult, Inc. at 888.684.8305, or email <a href=\"mailto:experts@adviseandconsult.net\">experts@adviseandconsult.net<\/a>.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>David W. Owen and Will White | BuildSmart One of the several attractive aspects of arbitration is the finality of the decision. With limited grounds to appeal or vacate an arbitration award, litigants can generally expect a final award to end any controversy between them. There are, however, rare situations where an arbitration decision is&hellip; <a class=\"more-link\" href=\"https:\/\/www.myconstructionexpert.com\/blog\/arbitration-finality-south-carolina-curbs-arbitration-panel-authority\/\">Continue reading <span class=\"screen-reader-text\">The Finality of Arbitration: Supreme Court of South Carolina Curbs Arbitration Panel\u2019s Authority<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[41],"tags":[9895,42],"class_list":["post-902874","post","type-post","status-publish","format-standard","hentry","category-arbitration","tag-advise-consult","tag-arbitration-2","entry"],"jetpack_publicize_connections":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.0 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Finality of Arbitration: Supreme Court of South Carolina Curbs Arbitration Panel\u2019s Authority - Advise &amp; 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