Wash. Appellate Court Says Condo Owners Not Limited to Arbitration

SEATTLE - Washington State's Court of Appeals has concluded that the Federal Arbitration Act does not preempt state law allowing judicial enforcement of condominium warranties where the only interstate commerce that would implicate the FAA was a subcontractor's use of out-of-state materials. Satomi Owners Association v. Satomi, LLC, No. 56265-7-1 (Wash. Ct. App., Div. 1).

The Court of Appeals, Division One, held in a published opinion on June 11 that the dispute over a "garden variety real estate deal" involves only Washington State parties and does not have the "significant effect" on commerce required to compel arbitration.

The issue of …