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Huegel v. Mifflin Construction Co.

The arbitration clause in the third of a series of home improvement contracts applies to any claims arising from the plaintiffs' purchase of the goods and services from the appellants as well as the obligations arising from the financing provided; the trial court's order dismissing appellants preliminary objections seeking an order to compel the plaintiffs to submit their claims to arbitration is reversed.

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� 1 Mifflin Construction Co., Inc. (Mifflin) and Conseco Finance Co. (Conseco) (hereinafter jointly addressed as Appellants), defendants in the action below, appeal from the trial court’s order dismissing their preliminary objections, which sought an order to compel the plaintiffs, Diana Huegel and George Huegel (Huegels), wife and husband, to submit their claims to arbitration. Appellants argue that the trial court erred in determining that the arbitration clause contained in the Home Improvement & Installment Contract and Truth in Lending Disclosure did not apply to the claims asserted in this action. For the following reasons, we reverse and remand.

� 2 This case arises from a dispute between the Huegels and Mifflin regarding home improvement work that Mifflin performed on the Heugels’ house. On August 26, 1996, the Huegels and Mifflin entered into a contract for the replacement of the roof on the Huegels’ house for $10,900. On September 26, 1996, the Huegels and Mifflin entered into a second contract that included the work to be performed in the first contract and, in addition, the replacement of windows and doors, for a total sum of $20,400. None of the parties dispute that the second contract operated as a novation of the first contract. Both the first and second contracts were written and signed on forms pre-printed with a Mifflin business heading and entitled “Agreement.”

� 3 On October 28, 1996, the Huegels and Mifflin entered into a third contract entitled “Pennsylvania Home Improvement Installment Contract & Truth in Lending Disclosure.” This third contract provided the Huegels with financing for payment to Mifflin for the work that it was to perform and referenced an attachment of the second contract as a description of the work to be performed. The third contract contained an arbitration clause that was not contained in either the first or second contract. The applicability of this arbitration clause is the subject of this appeal.

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