MCI Constructors sued the City of Greensboro over a wastewater treatment plant construction contract. The City terminated MCI's work and an arbitration panel awarded the City $14.9 million in damages. The appeals court upheld the arbitration award, finding the City had valid grounds to terminate for cause. This matters to subcontractors because it shows courts will enforce arbitration decisions against contractors, even for large damage awards.
Arbitration awards are very hard to overturn on appeal—courts rarely second-guess arbitrators' decisions unless there's clear abuse of power
Termination for cause clauses are enforceable and can result in massive financial liability; document all performance issues carefully