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Harrison County Commercial Lot, LLC v. H. Gordon Myrick, Inc.
107 So. 3d 943
Miss.
2013
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Background

  • Myrick contracted to build Cain Office Building for HCCL under an AIA-based contract with an arbitration clause excluding aesthetic-effect claims.
  • Disputes arose over punch-list items related to appearance; HCCL terminated Myrick and hired a new contractor.
  • Myrick sought to compel arbitration; HCCL contested which claims fell within arbitration vs. litigation for aesthetic-effect claims.
  • Trial court found arbitration agreement valid and instructed parties to submit which claims were related to aesthetic effect.
  • Affidavits and submissions on aesthetic-effect issues were exchanged; the court ordered certain punch-list items to arbitration and others to litigation.
  • On appeal, the court affirms arbitration validity, addresses scope and ambiguity, and remands for clearer reasoning on punch-list items.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Validity of arbitration agreement HCCL argues ambiguity and lack of jury-waiver language invalidate agreement. Myrick contends agreement is clear, unambiguous, and enforceable. Arbitration agreement is valid and enforceable.
Scope: which claims are arbitrable vs. aesthetic-effect All claims relate to aesthetic effect and are not subject to arbitration. Contract language shows most claims fall within arbitration except aesthetic-effect claims. Some claims are arbitrable and some are not; the trial court's designation requires clarification on punch-list items.
Waiver of arbitral rights by filing litigation Myrick waived by filing suit rather than arbitration. Myrick’s filing of a motion to compel arbitration did not waive rights. No waiver; motion to compel arbitration properly filed.
Punch-list item determination and reasoning Ambiguity in defining 'aesthetic effect' and which items are excluded. Court properly designated some items as aesthetic; others arbitrable. Remand for explicit articulation of why items were categorized as aesthetic or not.

Key Cases Cited

  • Scruggs v. Wyatt, 60 So.3d 758 (Miss. 2011) (two-part test for arbitrability; focus on contract intent and external constraints)
  • East Ford, Inc. v. Taylor, 826 So.2d 709 (Miss. 2002) (arbitration policy favors arbitration when ambiguities exist)
  • Pre-Paid Legal Servs., Inc. v. Battle, 873 So.2d 79 (Miss. 2004) (lack of notice/negotiation renders arbitration language insufficient)
  • McKenzie Check Advance of Miss., LLC v. Hardy, 866 So.2d 446 (Miss. 2004) (jury-trial waiver not required; arbitration agreement suffices)
  • Harry Baker Smith Architects, 83 So.3d 395, 83 So.3d 395 (Miss. Ct. App. 2011) (interprets arbitration clauses in construction contracts as clear)
  • May Constr. Co., Inc. v. Benton Sch. Dist., 895 S.W.2d 521 (Ark. 1995) (aesthetic claims may be non-arbitrable when appearance is the basis)
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Case Details

Case Name: Harrison County Commercial Lot, LLC v. H. Gordon Myrick, Inc.
Court Name: Mississippi Supreme Court
Date Published: Jan 31, 2013
Citation: 107 So. 3d 943
Docket Number: Nos. 2010-CA-01865-SCT, 2010-CA-01891-SCT
Court Abbreviation: Miss.