June 25, 2007

ARBITRATOR MUST RULE FIRST ON LEGALITY OF CONTRACT

Court of Appeal of Florida, Fifth District

A contractor gets a second look at its claim against an owner after the U.S. Supreme Court rules that an arbitration clause is severable from the rest of the contract when determining the underlying contract’s legality. In this instance, an arbitrator, not the court, has the first opportunity to determine if the contract is illegal.

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