Leeor Builders v. Forehand CA2/4

INTRODUCTION

Respondent LeRoy Forehand and his wife Elizabeth entered into a contract with appellant Leeor Builders, Inc. for home improvements.1 The contract contained an arbitration provision and a box on the first page requiring the initials of the “Owner” in order for the arbitration provision to be effective. Elizabeth’s initials appear in the box, as well as on the page containing the language of the arbitration provision, where initials of “Direct Contractor” also appear. In July 2020, after Elizabeth had passed away, LeRoy brought a demand for arbitration, initially seeking $299,999. Over Leeor’s objections, both the trial court and the Arbitrator ruled the arbitration provision was enforceable. In a closing brief submitted in the arbitration, LeRoy sought additional damages. The Arbitrator ultimately awarded LeRoy $869,000 in damages, plus costs, for a total of $902,749.38. The Arbitrator expressly found that Leeor had been on notice of the claims and of the additional damages sought. The trial court confirmed the award, rejecting Leeor’s argument that in exceeding the original demand, the Arbitrator’s award was fundamentally unfair. On appeal, Leeor contends the court…