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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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The new owners would not be bound by the arbitration agreement, due to the fact that the warranty booklet containing the arbitration agreement was not ...