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