Scott Addison Const. Inc. v. Lauderdale County School System

Summary

The Supreme Court of Mississippi reviewed whether a construction contract contained an enforceable arbitration provision after arbitration language in incorporated AIA general conditions was deleted. The court held that the contractor waived any right to object to the deletion through its conduct, including proceeding with construction while raising other contract concerns but not objecting to the arbitration deletion, and affirmed the circuit court's stay of arbitration. A dissent would have remanded for application of a presumption against waiver of arbitration rights.

Holdings

1. Section 11-15-103 does not provide the exclusive method by which a party may waive or agree to modify a contractual arbitration provision; common-law waiver principles may also apply.
2. Substantial evidence supported the trial court's finding that Addison waived its right to object to deletion of the arbitration provisions by failing to object while repeatedly raising other contractual concerns and by proceeding with construction under the executed contract.
3. No. If Addison had a contractual right to arbitration, that right existed from the outset of the contract, and Addison was not required to wait until an arbitration dispute became ripe before objecting to deletion of the provision.

Questions Presented

1. Whether Mississippi Code section 11-15-103 provides the exclusive method by which a party may waive a construction-contract arbitration provision.
2. Whether substantial evidence supported the trial court's finding that Addison waived its right to object to deletion of the arbitration provisions through its conduct.
3. Whether Addison's remaining arguments concerning contractual modification and consideration required reversal after the waiver ruling.

Disposition

affirmed