Bryan Echols

Bryan Echols focuses on commercial real estate, including zoning and land use, acquisitions and due diligence, financing, development, planning and leasing. He has assisted with shopping centers, business centers, commercial office space and flex-space leases.

He also represents lenders and commercial borrowers in loan transactions, including national lenders providing conduit credit facilities secured by real estate interests. Another facet of his practice is the use of conservation easements, fund-raising for preservation purposes and related issues. You can contact Bryan at bryan.echols@stites.com or by phone at 615-782-2388.

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Arbitration Clauses in Sales Contracts

05.24.10 10:37 AM
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A recent Tennesee Court of Appeals case has upheld arbitration clauses in real estate sales contracts, with some caveats.  The case, which can be read here, allows a developer to compel mediation and/or arbitration for delays in construction, but the principles will apply more broadly.  The key issue was the contract's invocation of the Federal Arbitration Act, rather than the Tennessee Uniform Arbitration Act.  Under the Tennessee Act, claims of fraudulent inducement could not be forced to be submitted to arbitration, even if the consumer agreed.  Under the Federal Act, however, even fraudulent inducement claims could be submitted to arbitration by agreement.  Unhappy homeowners frequently include fraud claims as part of a lawsuite against a developer or builder, so this was an important distinction.

The Court ruled that if there was no ambiguity in the contract, an agreement that the arbitration clause was governed by the Federal Arbitration Act would be enforceable in Tennessee.  Builders and developers should review their contracts in light of this decision, if arbitration is an important element of those contracts.

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