Auto paragraph being ignored on homepage excerpts

Hello all,
I am having a little trouble with the auto paragraph feature (I think). It is working fine in post pages, but when I used excerpts on the index, it does not read correctly. It ignores the individual <p> tags and converts all the text to one big <p> div.

I apologize if you aren’t supposed to link in here but the site I’m working with is http://www.designcrumbs.com/

Any and all help is much appreciated!