Texas Supreme Court Orders Arbitration of Homebuyers' Defect Claims

AUSTIN, Texas - The Texas Supreme Court has ordered a lower court to compel arbitration of homeowners' construction defect and mold claims against a builder, rejecting claims that arbitration provisions in their real estate sales contracts were unenforceable. In re: U.S. Home Corp., et al., No. 03-1080 (Texas Sup. Ct.).

In conditionally granting the homebuilders' petition for a writ of mandamus on Oct. 12, the high court said it would issue the writ only if the trial court does not grant the homebuilders' motion to compel arbitration.

Luis and Norma Cano and Mark and Gloria Schlatter sued U.S. Home Corp., …