Legal Memorandum: Arbitration Law in NC

Issue: Does North Carolina’s arbitration law differ from that of most other states?

North Carolina has adopted the Uniform Arbitration Act^[1] and the decisions under that state’s statutes reveal no differences in application between North Carolina and other states.  Years ago, it appears that North Carolina may have been dragged, kicking and screaming, into acknowledging arbitration agreements.  See Mercury Constr. Corp. v. Moses H. Cone Mem’l Hosp., 656 F.2d 933 (4th Cir. 1981), aff’d, 460 U.S. 1 (1983).  However, at present, it appears that North Carolina is in line with the other states and federal policy strongly favoring arbitration provided the parties have agreed in writing to arbitrate. See e.g., Rodgers Builders, Inc. v. McQueen Properties, Ltd., 331 S.E.2d 726 (N.C. Ct. App. 1985).

FOOTNOTES

^[1]The North Carolina arbitration statute is at N.C. Gen. Stat. § 45A-1-567.1 et seq.

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