Southern Constructors sued to overturn an arbitration award from a dispute with Loudon County Board of Education over a school construction contract. The contractor argued the school board had no legal authority to arbitrate. Tennessee's Supreme Court ruled that school boards do have the power to arbitrate construction disputes because that power is implied when they have the express authority to enter into construction contracts. This decision protects arbitration clauses in construction contracts with public school boards.
Arbitration clauses in school construction contracts are enforceable even though school boards are government entities with limited powers