Bob Sims and Sean Speciale recently defended a AAA construction industry arbitration stemming from a single rain event during a roof replacement. Claimants sought more than $1.5 million. Their demands included extensive interior repair costs, additional living expenses, emotional distress, personal injury damages, punitive damages, a mediation penalty, and attorneys’ fees.

In response to SLB’s offer of $550,000 prior to the arbitration hearing, claimants demanded $1.3 million. The matter proceeded to a full evidentiary hearing.

The arbitrator awarded claimants approximately $570,000 total—primarily for reduced home repair costs, temporary housing, and moving/storage. The award was lower than the claimed repair amounts after adjustments for upgrades and credits. Critically, the arbitrator denied emotional distress, personal injury, punitive damages, and the requested mediation penalty. Each party was ordered to bear its own attorneys’ fees and costs and no interest was awarded due to the overreaching by claimants.

Claimants incurred substantial legal fees litigating through hearing and therefore obtained significantly less than the pre-arbitration offer after. The result confirms that recovery is limited to reasonable and necessary repairs without betterment, and that claims for emotional distress and certain penalties lack support where only economic and property damage occurred. By presenting focused evidence on a repair scope and claimants’ pre-existing renovation plans, SLB successfully contained exposure and avoided paying claimants’ attorneys’ fees and the add-on damages.