America's Home Place, Inc. v. Cassidy

This Court granted the application of residential contractor America’s Home Place, Inc. for interlocutory review of the trial court’s order denying its motion to confirm an arbitration award in its favor. Because we find that the trial court erred in refusing to confirm the award, we reverse. Dennis and Ashley Cassidy contracted with AHP to build their home. The construction agreement the “contract” provided that all disputes arising out of the contract would be settled by binding arbitration. Disagreements later arose between AHP and the Cassidys, and they arranged for arbitration in accordance with the contract. AHP claimed that construction was substantially complete and demanded payment of approximately $90,000 it claimed was due. The Cassidys, on the other hand, denied that construction was substantially complete and refused to pay until AHP addressed a number of alleged problems with the residence. They asserted a counterclaim seeking to recover the cost of remedying these claimed defects.

The arbitrator ruled in favor of AHP, finding that the company had substantially completed construction on the Cassidys’ residence. The arbitrator also found that the remaining work was either “By Owner” under the contract or were punchout items. He specifically found that installation of the hardwood floors was a “By Owner” item. The arbitrator concluded that it was premature to make a determination of responsibility for the punchout items because the Cassidys had not afforded AHP the opportunity to address those items under the terms of its warranty. The arbitrator directed the Cassidys to pay the contract balance of $93,716.99 within 30 days.