Arbitration, evidence.

A general contractor appeals a lower court's ruling in a suit involving the city of Lawrence. Francis Falzarano contracted with city officials to execute a renovation project at a municipal hospital. After Falzarano sub-contracted certain tasks in the project and moved equipment to the site, the city terminated Falzarano's contract. City officials learned of a new law requiring state approval prior to significant renovation of any health facility. Falzarano accepted the city's decision to terminate the contract but requested reimbursement and compensation for expenses incurred prior to the city's decision to terminate the project. The city balked at compensating Falzarano, and he exercised an arbitration clause within the contract. The city attempted to dismiss the arbitration petition, arguing its contract with Falzarano was unenforceable. An arbitrator ruled for Falzarano. The city challenged the arbitrator's ruling.

A superior court judge ruled in favor of the city and vacated the arbitrator's ruling. The court ruled the city held a legal contract with Falzarano, but ruled that performance of the contract would be illegal. Therefore, the court stated, there was no issue to arbitrate. Falzarano now appeals.

Falzarano wins. The Supreme Judicial Court of Massachusetts reversed the decision of the lower court and remanded the case for appropriate action. The court ruled the lower jurisdiction lacked grounds to vacate the arbitrator's ruling.