Take-Nothing Arbitration Win Ends 10-year Hurricane Dolly Claim

A $30 million construction defect lawsuit that has endured for more than a decade has ended with a take-nothing decision in an arbitration ordered by the Texas Supreme Court.

The case, G.T. Leach Builders LLC v. Sapphire VP, involved extensive damage to a luxury condominium development in South Padre Island. The project was still under construction when it was heavily damaged by Hurricane Dolly, and Sapphire VP, the developers, sought to recover millions in water damage, construction delays, lost revenues and increased constructions costs. Moreover, it was 2008, and Sapphire’s condominium project found itself plagued by a cratering real estate market and restless investors who withdrew their purchases.