Friday, October 2, 2009

High court rules in favor of Hanks

Justices decide construction dispute not settled


By TERRY SMITH
Express Staff Writer

Courtesy photo by Getty Images Actor Tom Hanks poses with his wife, Rita Wilson.

The Idaho Supreme Court has ruled in Tom Hanks' favor in a long-standing dispute over alleged construction defects at the actor's home north of Ketchum.

In a decision issued Wednesday, the high court unanimously overturned a Blaine County 5th District Court ruling that determined that the dispute between Hanks and Storey Construction had been settled in earlier arbitration. The justices ordered that new arbitration can proceed now on a claim that Hanks and his wife, Rita Wilson, filed against Storey Construction in 2007 with the American Arbitration Association.

Hanks and Wilson are seeking about $1.5 million in their arbitration claim, alleging that latent construction defects, particularly a leaking roof, were discovered after the house was completed in 2002. Hanks and Wilson also have a claim for about $1.5 million pending before the Arbitration Association against the home designer, Lake/Flato, a San Antonio, Texas, architectural firm.

Storey won an earlier arbitration claim in 2003 for $1.85 million. Fifth District Court Robert J. Elgee ruled in 2008 that the matter was settled in the earlier arbitration and no further arbitration could proceed. Hanks and Wilson appealed Elgee's decision to the Supreme Court.

The high court determined in its ruling that a contractual agreement between Storey and Hanks and Wilson did not bar further arbitration if alleged construction defects were later discovered.

"The really important thing is that the Supreme Court did not decide that Storey performed unsatisfactory work," Storey attorney Miles Stanislaw said Thursday. "In fact, they made it clear they were not going to look at that.

"The unfortunate thing is it prolongs a vendetta that has already gone on too long."

Stanislaw said that if there are problems with Hanks' home, they are a "result of the design, but not as a result of construction."

Stanislaw declined to discuss his next move in the matter, except to say that "we're going to proceed to litigate and continue the appropriate defense of Storey because he's the victim of a vendetta and he's done nothing wrong."

Hanks' and Wilson's attorney, John Hanover of Los Angeles-based Peckar & Abramson, said the couple will now proceed with their arbitration claim against Storey.

"There is nothing personal about bad construction—the house doesn't lie," Hanover said. "The work is either done right or it's not, and in this case Storey Construction did defective work.

"We look forward to finally having a hearing on the defective construction after years of fighting through Storey Construction's attempts to avoid talking about its lousy work. Gary Storey and his lawyer, Miles Stanislaw, have avoided the real issues in this case for far too long. It's not about personalities. It's about dangerous conditions that resulted from the defective work of Storey Construction."

Hanks and Wilson issued the following statement Thursday to the Idaho Mountain Express:

"We are very grateful to the Idaho Supreme Court for its careful and thoughtful consideration of our appeal. We believe the Supreme Court's decision will have an impact far beyond our case, helping homeowners who have been wronged in ways that remain hidden long after their home has been built.

"Like anyone else in the same position, we simply wanted Storey Construction to reimburse us for what we have spent fixing shoddy and defective construction. Instead, they tried to hide behind an earlier dispute that had nothing to do with the hidden defects, which made our home unsafe.

"We hope that our victory will help others in similar situations avoid the expense and anguish we have endured simply trying to get Storey Construction to fulfill their responsibilities."

Terry Smith: tsmith@mtexpress.com




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