Dallas Appeals Court Holds Arbitral Award Must Stand in Construction Dispute
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The Fifth District Court of Appeals in Dallas has affirmed a lower court’s decision to confirm an arbitral award in a construction dispute. In Goldman v. Buchanan, No. 05-12-00050-CV, (Tex. App.—Dallas Mar. 21, 2013, no. pet. h.), Beryl Goldman entered into a contract to design and build a new house with an architect, Russell Buchanan, and a builder, Lawrence Wallace. The parties’ agreement contained an arbitration provision. Once construction was completed, Goldman sued both Buchanan and Wallace for breach of contract and negligence. After a trial court ordered the disputes to binding arbitration, but before arbitration took place, Goldman and Wallace entered into a settlement agreement for $1 million.
During arbitration, an arbitral panel found that the house had a number of construction and material flaws. The panel found that Buchanan failed to address obvious construction defects and ruled in favor of Goldman. At arbitration, Goldman was awarded more than $640,000 in damages and $196,300 in attorneys’ fees. The arbitrators then reduced the award to zero as a result of the previous settlement between Goldman and Wallace.
Read original articleTags: arbitral award, Beryl Goldman, Dallas Appeals Court Holds Arbitral Award, Fifth District Court of Appeals, Russell Buchanan
