Wilson Building Co. v. Thorneburg Hosiery Co

In Wilson Building Co. v. Thorneburg Hosiery Co., 85 N.C. App. 684, 355 S.E.2d 815, disc. review denied, 320 N.C. 798, 361 S.E.2d 75 (1987), the Court concluded that, because the amount of attorney's fees for debts and obligations is set by statute, the arbitrator exceeded his authority by ordering fees in excess of that amount. Wilson Building Co., 85 N.C. App. at 686-88, 355 S.E.2d at 817-18. More instructive, however, is the case of FCR Greensboro, Inc. v. C&M Investments, 119 N.C. App. 575, 459 S.E.2d 292, cert. denied, 341 N.C. 648, 462 S.E.2d 510 (1995). In that case, the parties submitted for arbitration the amount of liquidated damages caused by the defendant completing construction of a building after the agreed-upon date. Id. at 576, 459 S.E.2d at 293. The arbitrator awarded plaintiff these damages, but then also awarded plaintiff two other kinds of damages: (1) liquidated damages caused by delays in starting construction; (2) reimbursement for certain changes plaintiff made to the sprinkler system that was installed. FCR Greensboro, 119 N.C. App. at 577-78, 459 S.E.2d at 294-95. The Court held that the arbitrator exceeded his powers by making these additional awards. Id. at 578, 459 S.E.2d at 294-95.