Homebuyers' Claims Against Builder Dismissed Based on Arbitration Clause
Buyers of a newly constructed home sued the builder for breach of contract, breach of warranty, and negligence arising out of water leaks and other defects in their home. The court granted defendant's motion to dismiss on the ground that the parties' contract required the dispute to be submitted to binding arbitration.
The court noted that the arbitration clause at issue was very broad because it encompassed any claims "arising from or related to [the] Warranty, to the subject Home, to any defect in or to the subject Home or the real property on which the subject Home is situated, or the sale of the subject Home by the Buyer" and further covered a whole range of negligence-based or intentional claims. The court found that this language was designed to be all-encompassing and implicated all of plaintiffs' claims in the action.
