Legal Question in Consumer Law in Georgia

Construction defect and arbitration clause

We bought a house in 8/2004 from builder as new. Arbitration clause cites AAA in new homes sales agreement. Found 2 construction defects in home as ''proven'' by an engineer. It will cost around $10,000 to fix. Tried arbitration but it is too expensive as they wanted $1000.00 just to file the demand. I have filed in small claims court in Georgia because the limit here is $15,000 and the repair is ''only'' $10,000. I received a copy of the builder's ''answer'' to our small claims court and his lawyer requests that the case go back to arbitration.

My question is this: Do I need to file an answer to the lawyer's motion saying something about principle 5 of the AAA stating that consumers always reatain the right to seek relief in small claims court as long as it falls within the jurisdiction of the court? I want to make sure I get ''my day in court'' and to not have the case thrown out before we even have the chance! I would definitely consider the arbitration clause unconscionable since the cost of arbitration is way out of proportion compared to the defect itself....I have also paid engineer's fees and attorney's fees out of pocket as well. I no longer have an attorney since it is a small claims case. Please help!


Asked on 5/31/07, 8:25 am

2 Answers from Attorneys
John Jackson Law Office of John A. Jackson, P.C.

Re: Construction defect and arbitration clause

Previously arbitration was frowned upon by courts. They have gained in popularity so your fears may be well founded. There are positives to arbitration it is generally less expensive in the long run and it is faster. You may even be able to recover the filing fee and attorney fees. As for your question, I have not seen the pleading that you speak of. It may not need an "answer" from you. It maybe something that you will argue infront of the judge.

If you want to discuss this further my contact information is below.

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Answered on 5/31/07, 8:43 am
SHERRY RAGOLE RAGOLE & ASSOCIATES, LLC

Re: Construction defect and arbitration clause

Many parties are represented by attorneys in Small Claims Court. You should consider working with the attorney you are already working with to continue representation. Courts are very busy; therefore, the prospect of sending you to arbitration may be inviting. The best resistance to that will be representation by counsel.

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Answered on 5/31/07, 11:23 am


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