FAA Doesn't Preempt Md. Law In Toll Bros. Suit: 4th Circ.

Law360, New York (February 26, 2013, 7:48 PM EST) -- The Fourth Circuit refused Tuesday to toss a putative class action facing Toll Brothers Inc. over not refunding deposits for a luxury home after the buyers' mortgages fell through, blasting the builder's argument that the Federal Arbitration Act preempts a Maryland rule.

Backing a lower court decision, the Fourth Circuit panel said an arbitration clause with the plaintiffs was unenforceable since it lacked a mutuality of consideration, or basically wasn't equally fair to the parties, under Maryland law, according to the published decision. With the decision,...
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