While the contract dispute involves broader issues such as allegations that each side violated the parties' 1999 contract, the Supreme Court would consider only whether a lower circuit court had jurisdiction in the dispute when it ruled in October that Charleston International Ports should control the terminal pending arbitration.

The SPA challenged that ruling, arguing that the circuit court lacked jurisdiction because the terminal contract is subject to out-of-court arbitration.

The appeals court last week temporarily returned operational control of the 100-acre terminal to the SPA and was scheduled to hear oral arguments Wednesday before making a final ruling. The hearing was unexpectedly canceled late Tuesday, and the jurisdiction issue was referred to the Supreme Court.

For now, the SPA remains in charge of the terminal because the appeals court left last week's order intact.

Ports authority officials declined to comment, and CIP officials could not immediately be reached.

SPA attorneys have said the issue is of statewide significance because courts need clear direction as to when, if at all, they can intervene in a matter involving a contract that is subject to arbitration.

After a voluntary mediation session last summer failed to produce a binding settlement, the SPA and CIP were expected to bring their differences before a tribunal of arbitrators. But the arbitrators ordered the dispute back into mediation, which is set for Wednesday.

The terminal dispute entered the court system in October after CIP sued the SPA, arguing that the SPA resorted to self-help measures when it terminated CIP's contract and seized control of the terminal.

The SPA alleges that CIP officials, who ran the break-bulk cargo terminal on land controlled by the SPA, made spending decisions that kept CIP from sharing half its profits with SPA. Among other things, the state agency challenged CIP's decision to donate to political and charitable causes and to loan money to another company owned by CIP's managing member, Warren Lasch.

CIP officials maintain the company did not violate the contract and counter that it was the SPA that did so by not adequately marketing CIP's terminal to potential customers. CIP officials have said the company is willing to turn the terminal back over to the SPA in exchange for a fair buyout of its 30-year contract. They estimate the value at between $25 million and $40 million.

The SPA is seeking reimbursement of its legal expenses and the cost of a financial review of CIP's books, which together cost the public agency over $1 million.

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