Legal Question in Construction Law in Michigan

Refusing Arbitration with Builder and Countersuing

I had a home built by a General Contractor a few years ago. Among other things, the contract called for the home to be substantially complete by a August 30 and if disagreements came up they would be handled by an Arbitrator. During the building process there were many disputes with the builder, and the house was not substantially finished (I had a temporary certificate of occupancy) until November 24 after the original agreed upon date. The builder now, nearly two years after completion, to go to arbitration to settle financial disputes. I paid the builder the original price we agreed upon plus many additional charges that I picked up myself outside of the construction loan. Since the builder broke the contract by not finishing on time, is the contract still valid? Can I refuse arbitration? Can I sue the General Contractor for the stress he put my family and me through (my wife was pregnant at the time)?


Asked on 6/06/01, 1:32 pm

1 Answer from Attorneys
Don Darnell Darnell & Lulgjuraj, P.C.

Re: Refusing Arbitration with Builder and Countersuing

Agreements to arbitrate are usually binding unless they are unequal. That is, I've seen some where both parties can demand arbitration but only the [builder] can waive arbitration and file a civil suit. In those instances you can file a civil suit. It's unclear from your message if you have made a demand on them or they have made a demand on you.

With regard to your stress, you cannot sue for it as a cause of action, however, if there was a contract breach, and it sounds like there was, you can add emotional distress as an element of damages.

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Answered on 6/27/01, 1:04 pm


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