Court Finds Arbitration Clause Too Broad, Unconscionable

SAN FRANCISCO - A California appellate court has concluded that a condominium sales agreement's arbitration provisions not only don't apply to fraud claims, but are so broad as to be unenforceable. Thompson v. Toll Dublin, LLC, et al., No. A116856 (Calif. Ct. App., 1st Dist.).

The First Appellate District's July 23 opinion affirmed an order of the Alameda County (Calif.) Superior Court against Toll Dublin LLC and Toll Brothers Real Estate Inc., which sought to compel arbitration of mold and water damage claims brought by purchasers of seven units at a Toll development.

Peter V. Thompson and his co-plaintiffs …