Calif. High Court Ruling May Shrink Construction Defect Suits

Law360, San Diego (August 16, 2012, 12:00 AM EDT) -- The California Supreme Court held Thursday that arbitration provisions in developers’ rules for homeowners associations are enforceable as long as they fairly consider the rights of the associations and individual owners, a decision that is likely to lead to fewer construction defect cases going to court and quicker dispute resolution, attorneys say.

The state’s high court ruled that even though the homeowners association in the case didn't exist when developer Pinnacle Market Development US LLC drafted and recorded its rules, they reflect written promises that can...
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