State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_1 > GS_1-567_46

§1‑567.46.  Competence of arbitral tribunal to rule on its jurisdiction.

(a)        The arbitraltribunal may rule on its own jurisdiction, including any objections withrespect to the existence or validity of the arbitration agreement.  For thatpurpose, an arbitration clause which forms a part of a contract shall betreated as an agreement independent of the other terms of the contract.  Adecision by the arbitral tribunal that the contract is null and void shall notentail ipso jure the invalidity of the arbitration clause, unless the arbitraltribunal finds that the arbitration clause was obtained by fraud, whether inthe inducement or in the factum.

(b)        A plea that thearbitral tribunal does not have jurisdiction shall be raised not later than thesubmission of the statement of defense.  However, a party is not precluded fromraising such a plea by the fact that the party has appointed, or participatedin the appointment of, an arbitrator.  A plea that the arbitral tribunal isexceeding the scope of its authority shall be raised as soon as the matteralleged to be beyond the scope of its authority is raised during the arbitralproceedings.  In either case, the arbitral tribunal may admit a later plea ifit considers the delay justified.

(c)        The arbitraltribunal may rule on a plea referred to in subsection (b) of this sectioneither as a preliminary question or in an award on the merits.  If the arbitraltribunal rules as a preliminary question that it has jurisdiction, after havingreceived notice of that ruling, any party may request the superior court todecide the matter.  The decision of the superior court shall be final and notsubject to appeal.  While such a request is pending, the arbitral tribunal maycontinue the arbitral proceedings and make an award. (1991,c. 292.)