A subcontract arbitration clause states that the parties may
take steps to confirm an arbitration award, but agree not to
challenge any award. A Georgia appellate court has held that the
restriction on challenging an award impinges on the Georgia
Arbitration Code and is unenforceable. Thus, the losing party in
the arbitration can pursue an action to vacate or modify the award
per the arbitration law. The case is Atlanta Flooring Design
Centers, Inc. v. R.G. Williams Construction, Inc., 2015 Ga.
App. LEXIS 471 (July 16, 2015).
The Georgia appellate court cited cases under the Federal
Arbitration Act to the same effect, that grounds existing under the
FAA to vacate an award "may not be waived or eliminated by
contract." The Georgia court thus held that the subcontract
clause "conflicts with and frustrates Georgia public policy as
expressed in the [Georgia Arbitration Code], and is void and
unenforceable" to the extent it would deny a party the right
to challenge an