Binding Arbitration For Homebuyers
Thomas Becker and others who brought new home from Osborne
Development Corporation sued for multiple defects in the houses. When Osborne
sold homes, it paid for them to be in a new home warranty program administered
by home buyers warranty. When the company enrolled a home with home buyers
warranty, it paid a fee, filled out a form that stated the following: By
signing below, you acknowledge that consent to the terms of these documents,
including the binding arbitration provision contained within. HB W didn’t issue
warranty booklets to the new homeowner that stated, any and all claims disputed
and controversial by or between the homeowners and the builder shall be
submitted to arbitration.
Will the new homeowners be bound by the arbitration
agreement, or could they sue the builders Osborne in court? (Becker versus
Osborne development Corp., 159 CAL. A PEP forth 884, 71 CAL. Our PET RPTr. 3-D
854 (2008 )
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