Earlier this week, the S.C. Court of Appeals decided the case of Richland Horizontal v. Sky Green Holdings (found online at http://www.sccourts.org/opinions/displayOpinion.cfm?caseNo=4795). Arbitration was sought to be enforced by the Defendant developer who was sued by two owners regarding a Greenville condominium project. The trial court and the S.C. Court of Appeals both held that Code Section 15-48-10(a) of the Uniform Arbitration Act that provides “Notice that a contract is subject to arbitration pursuant to this chapter shall be typed in underlined capital letters, or rubber-stamped prominently, on the first page of the contract and unless such notice is displayed thereon the contract shall not be subject to arbitration” means just that. In other words, if you have a “cover page” that indeed is the first page, even if (as was the case here) you state unequivocally which one is the “first page.” Despite South Carolina having a “strong public policy favoring arbitration,” the flaw was fatal in this case!
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