Court Upholds Validity of Developers' Arbitration Clauses

SACRAMENTO - A California appellate court ruled in an unpublished opinion on Dec. 22 that mandatory binding arbitration clauses in home warranties are not unconscionable and are enforceable. Browning v. Dunmore Development Co., No. C050552; Arndt v. Feather River Construction & Development Co., C050945 (Calif. Ct. App., 3rd Dist.).

California's 3rd District Court of Appeal reversed rulings by two trial courts that declined to compel arbitration of homeowners' construction defect claims against their developers.

The first lawsuit was brought in Sacramento Superior Court by Annette Browning and the owners of three other homes in Crystal Shores development in Elk Grove, …