Federal Court Orders Fla. Insurer to Arbitrate Claims Against Contractor

TAMPA, Fla. - The arbitration clause in a limited warranty provided by a builder to the original homebuyer also binds the insurer for a subsequent owner, a federal magistrate judge in Florida concluded June 6. Florida Farm Bureau Insurance Cos. v. Pulte Home Corp., No. 8:04-CV-2357-T-EAJ (M.D. Fla.).

Florida Farm Bureau Insurance Companies sued Pulte Home Corp. for negligence, implied warranty and strict liability to recover $114,377 paid to remediate mold from the home owned by its insureds, R. Chris Landsberg and Carol B. Landsberg. The Landsbergs sought coverage after heavy rains in September 2004 caused water leaks and led …