Taylor Allin (Partner-Phoenix) and Nicholas Merritt (Associate-Phoenix) successfully defended their client, a national home improvement store, in an arbitration involving construction defect and breach of contract allegations. The client contractually arranged for a general contractor and a supplier of roofing materials to replace a private homeowner’s roof. During the delivery of materials, the roof was damaged. While waiting for an assessment of repairs, the roof was further damaged by a rainstorm. The house was not repaired and eventually declared a total loss due to exposure to the elements over a long period of time.  

The homeowners' insurer also brought a subrogation action seeking damages for the cost of the entire home for over $400,000. The homeowners sought damages over $1,000,000. The arbitrator agreed with the mitigation-of-damages argument advanced by Taylor and Nicholas, limiting damages to the original incident and the first rainstorm only. Fault was allocated equally between the delivery company and the general contractor. Additionally, Plaintiffs were not awarded attorneys' fees as they were not the prevailing party.