Germantown homebuilder wins contract dispute | News

Germantown homebuilder David Clark Construction prevailed in a contract dispute this week that has been closely followed by the residential home construction industry in Memphis and Shelby County. David Clark is a past president of the Memphis Area Homebuilders Association and the youngest member of the Clark family of builders.

In 2008, a homeowner contracted with David Clark Construction to build a $600,000 house in Germantown's ritzy Enclave subdivision. Shortly before the home was completed, the homeowners stopped paying and forced Clark off the job, claiming Clark had varied from the plans prepared by the home designer.

They then hired a new builder to finish the job, for much more money, and tried to make Clark pay the difference.

This week, a panel of arbitrators unanimously disagreed with the homeowners' claims and awarded Clark damages and attorney fees, finding that the homeowners themselves had breached the contract based on a strict review of its terms.

The case was closely watched because arbitration provisions are so commonplace in new construction contracts. Disputes such as these often end up in arbitration and can be very expensive. Moreover, the homeowners had retained a battery of lawyers, at enormous expense, to litigate their claim.

The result is a victory for homebuilders who operate in good faith under the terms of their construction contracts.

The firm representing David Clark Construction is Pietrangelo Cook PLC. You can read more about this ruling on the firm's website.