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Gargano v. Terminix International Co., L.P.

Confirmation of arbitration award affirmed; arbitrator did not exceed his authority when he granted relief in excess of the figure referenced in arbitration agreement because language of agreement did not limit award to that amount; defendant failed to establish any underlying irregularity and resulting inequity.

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� 1 Appellant, Terminix International Co., L.P., appeals from the judgment entered pursuant to a December 1, 2000 order of the Court of Common Pleas of Delaware County confirming an arbitration award. We affirm and remand to the trial court for the imposition of appropriate attorney fees and delay damages. The relevant facts and procedural history are as follows.

� 2 Appellees, Richard J. and Monicalucia Gargano, entered into an agreement of sale with Norris Jackson for the purchase of a home. As this sale was contingent upon Appellees obtaining a “wood destroying insect infestation and resultant damage report” and a “general inspection report,” Appellees hired Appellant to inspect the home for the presence of wood destroying insects and to ascertain the extent of any damage caused by them. Appellant performed this inspection and only reported evidence of infestation at the end of one beam in the foundation. Appellees hired Appellant to treat the termites, and once treated, Appellant assured them that the structural integrity of the home was not compromised and that there would be no further active infestation or continuing damage. As a result, Appellees purchased the home on July 21, 1995. Only one month later, Appellees discovered extensive termite infestation and learned that their home was structurally unsound.

� 3 Appellees initiated a civil action in the Court of Common Pleas of Delaware County against Appellant for negligence and breach of warranty claiming damages in excess of $240,000. *fn1 Upon Appellant’s request to submit the matter to arbitration, the parties drafted and executed an agreement to arbitrate. This agreement specifically provided that the parties would submit to “binding common law arbitration through the American Arbitration Association under its Commercial Arbitration Rules.” Agreement to Arbitrate, at Exhibit P-2. An arbitration hearing was held and an award was entered on June 13, 2000 in Appellees favor in the amount of $215,314.92.

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