Toll Bros. Can't Dodge Down Payment Class Action

Law360, New York (January 30, 2012, 5:22 PM EST) -- Homebuilder Toll Bros. on Monday lost a bid to force arbitration or dismiss a proposed class action that accuses the company of refusing to return down payments to homebuyers who were later rejected for a mortgage.

The plaintiffs will be allowed to continue their suit in Maryland federal court against the company, which they claim earned $102 million between 2006 and 2009 by improperly keeping down payments.

The arbitration clause of Toll Bros.' sale agreement is “quite simply one-sided and onerous,” requiring buyers to submit to...
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