28168 – Sanders v. Savannah Highway Automotive Company

Petitioners Rick Hendrick Dodge Chrysler Jeep Ram and Isiah White argue an arbitrator, rather than the court, must decide whether they can enforce an arbitration provision in a contract even after assigning the contract to a third party. The circuit court and court of appeals concluded the court is the proper forum for deciding the gateway question of whether the assignment terminated Petitioners’ right to arbitration. Sanders v. Savannah Highway Auto. Co., 432 S.C. 328, 332-34, 852 S.E.2d 744, 746-47 (Ct. App. 2020). We reverse the court of appeals’ decision and hold that, under the facts of this case, the Prima Paint doctrine requires an arbitrator to decide whether the assignment extinguished Petitioners’ right to arbitration.

Posted by: Byron King on 11/07/23 (This information is only accurate as of 11/07/23. You must contact SCR for updates and changes to this information after 11/07/23 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)

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