Claim of Fraudulent Inducement of a Construction Contract Does Not Invalidate Arbitration Clause
Pepper Hamilton LLP’s Constructlaw blog discusses an Ohio case in which a plaintiff sued a building company and attempted to have the arbitration clause in a construction contract declared unenforceable.
The contract identified the builder in the case by a name that was a fictitious name for a similarly named company and was not registered with the Ohio secretary of state, writes Emily D. Anderson. The trial court denied plaintiffs’ motion to invalidate the arbitration clause.
The appellate court agreed with the trial court, observing that the builder did not initiate the action but was merely defending it.