Legal Question in Construction Law in North Carolina

new home contract / fault issue

A week after moving into my new home the sewer pipe between my home and the water main blocked and caused sewage to back up into my brand new home. The city came out and found the contractor to be at fault because rocks were left in the pipe which over the course of a week of flushing etc stopped the flow.

The builder is coming out today to review what they are going to do. They have informed me that according to their warranty they are respoonsible for this.

My question, If the builder does not live up to what I feel they should do ... do I have any recourse even though I have signed an arbitrator agreement clause. Does this even fall into something that is arbitrary, escpescially if the builder has admitted fault and responsibility.

The clean up crew they sent in had to tear out my hardwoods, carpets, ruined some furniture and clothes and went into my basement. The clean up crew did do a great job but the damages are considerable.

Any advice as to what my options may be would be greatly helpful as I am going to be sitting down with the company rep's this afternoon.

Asked on 8/06/07, 1:27 pm

1 Answer from Attorneys

John Kirby Law Offices of John M. Kirby
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Re: new home contract / fault issue

You've got a mess on your hands. You should probably meet with the contractor and see what they will do. You don't want to sign any sort of release or waiver until you're sure that your losses have been taken care of. If they will not pay you a fair amount to cover your losses, then the claim may be subject to arbitration. Those agreements are generally enforceable, but you have to examine the precise language of your contract. The arbitration award (assuming it's binding) can then be taken to court for a judgment. You probably need to meet with an attorney to give you more guidance on this issue, and provide him or her with more facts.

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8/06/07, 6:43 pm

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