Hospice House Obtains Judgment and Defeats Contractor’s Claim for Additional Payment
FRANKLIN, N.C. — Hospice House Foundation of WNC, Inc. announced today that it has obtained a court judgment in the amount of $600,000 arising from the incomplete construction of its planned inpatient hospice facility in Franklin.
On May 13, 2026, an arbitrator issued a Final Award in favor of Hospice House and against Western Builders of Sylva, Inc., the project’s general contractor. On May 28, 2026, the Superior Court of Macon County confirmed the award and entered judgment in favor of Hospice House.
The arbitration resulted in a substantial recovery for Hospice House. In addition to obtaining a $600,000 judgment, Hospice House successfully defeated Western Builders’ counterclaim seeking payment of allegedly unpaid contract funds. The arbitrator denied Western Builders’ counterclaim, allowing Hospice House to preserve the contract balance of more than $800,000. The judgment collected from Western Builders will be added to those available funds.
“The community entrusted Hospice House with significant resources to create a much-needed inpatient hospice facility for Western North Carolina,” said Sallee Coss, President of the Hospice House Board. “When the project encountered serious problems and was not completed, Hospice House had a duty to investigate what happened, pursue accountability, and protect the charitable assets entrusted to it. This judgment represents an important step in that process. The need for inpatient hospice care in our region has not changed, and Hospice House remains committed to ensuring that the resources entrusted to the organization are ultimately used to advance that mission.”
The arbitration involved claims by Hospice House that Western Builders failed to construct and complete the project in accordance with its contractual obligations. The arbitrator awarded Hospice House $600,000 and denied all remaining claims asserted by the contractor.
The award also recognized that the project was affected by significant issues involving project drawings, specifications, and regulatory approvals. The arbitrator noted that the project design did not receive approval from the North Carolina Department of Health and Human Services and that a Stop Work Order was issued by Macon County pending approval of updated plans. Hospice House remains committed to pursuing all available remedies on behalf of the organization and its supporters. Claims involving other project participants, including the project designers, remain pending and will now proceed following completion of the arbitration process with Western Builders.
“We recognize the disappointment felt by many members of our community regarding the project’s outcome,” said Sara Stevens, Treasurer of the Hospice House Board. “Throughout this process, our Board has remained focused on protecting charitable assets, honoring the intent of our donors, seeking accountability where appropriate, and preserving future opportunities to advance hospice care in Western North Carolina. We appreciate the patience and continued support of our donors, volunteers, and community partners.”
While no firm final decisions have been made regarding the future of the project, Hospice House remains committed to evaluating opportunities to use its assets and recoveries in a manner consistent with the charitable purposes for which they were originally contributed. The Board will continue to keep the community informed as those efforts progress. Copies of the Final Arbitration Award and the Court’s Judgment are available upon request.
For additional information, please contact: info@hhfwnc.org
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