Tennessee Law Regarding Arbitration

I have recently learned another aspect the Tennessee State Law regarding an Arbitration Clause in a Contract. The Tennessee Law requires BOTH parties Initial or Sign the Arbitration Clause Paragraph in a Contract. If the Arbitration Clause itself is NOT Initialed or signed specifically, the Arbitration Clause in the contract is NOT enforceable and will NOT stand scrutiny of a Court review even with the proper signatures pertaining to the contract itself. In other words, Tennessee Law states the Arbitration Clause requires separate initials/signature beside the Arbitration Statement in a contract.

There is also another clause in our contract that states that by signing this contract both parties agree to acknowledge and adhere to Tennessee State Law as the prevailing Law for this contract.

The Tennessee Law states that when there is an allegation of Fraud in the dispute between the 2 parties bound by the contract, the matter MUST then bypass arbitration as there is NO remedy for fraud in Tennessee State Arbitration and therefore be assigned and heard in a Court Trial.

This aspect of the States Arbitration Law is not commonly known or used. As it turns out our Attorney has argued this very point before the Tennessee Appellate Court and successfully prevailed. Turnberry Homes is now aware of this Appellate Court ruling so we are cautiously optimistic that they are not going appeal the Judges decision as the Appellate Court has ruled on a very similar case previously and it is very unlikely they would rule against their own previous ruling.