Gordon Rees Scully Mansukhani Partner Hiawatha Northington II and Associate Sheridan A. Carr recently secured a complete dismissal with prejudice on behalf of the firm’s client, a home inspection company, in a matter involving claims of negligent inspection services.
The case arose from allegations by homeowners who asserted that the inspection company failed to detect mold and subfloor rot during a pre-purchase home inspection, which they claimed resulted in substantial repair costs and loss of use of their home. The claimants filed suit in Mississippi state court asserting multiple causes of action, including negligence, gross negligence, breach of contract, and negligent misrepresentation.
In response, GRSM promptly moved to compel arbitration, highlighting that the inspection agreement included a binding arbitration clause. After the matter was submitted to arbitration, GRSM pursued dispositive relief, emphasizing that the agreement expressly limited the scope of inspection services to visible and readily accessible components, excluded inspections for mold or hidden conditions, and clearly disclaimed liability for such issues. The agreement also contained a limitation of liability provision, which limited damages to the amount of the inspection fee.
Shortly thereafter, the claimants voluntarily dismissed the arbitration with prejudice, effectively terminating the case with no admission or finding of liability against the inspection company. GRSM’s strategic advocacy ensured that its client was cleared of all allegations, reaffirming the enforceability of inspection limitations and liability waivers under Mississippi law.
Learn more about GRSM’s Commercial Litigation and Professional Liability Defense practices.