Developers Can Arbitrate Defect Claims, Pa. Court Says

Law360, Philadelphia (May 24, 2013, 5:37 PM EDT) -- A Pennsylvania appeals court on Thursday overturned a lower court's decision that the developers of a planned residential community facing homeowners' claims over shoddy construction work and water damage were not entitled to arbitration.

The Pennsylvania Superior Court found that the association could not get around the terms of contracts signed by its individual members upon the purchase of their townhouses mandating that they go to arbitration to try and settle any disputes before filing suit in court.

“Because the claims advanced by appellee on behalf...
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