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- - ICRA
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This case involves a dispute between Jim W. Miller Construction, Inc. and David Company over defective workmanship in the construction of seven townhouses. The arbitrators ordered Miller to purchase the real property on which the buildings were erected as part of their award, which was upheld by the court of appeals panel. The court found that the arbitrators did not exceed their powers and that the remedy was within the scope of the broad powers delegated to them by the construction contract. The court justified the remedy based on the extent and magnitude of the construction defects, noncompliance with contract obligations, and building code violations. The lower court did not err in this case. The arbitrators acted within the scope of their authority in fashioning the "sell back" option and placing the obligation on the responsible party to remedy the construction deficiencies and bear the risk of potential future warranty liabilities.
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