SAN FRANCISCO In a broad victory for contractual arbitration that called to mind recent U.S. Supreme Court decisions, the California Supreme Court ruled Thursday that a homeowners association can be forced to arbitrate construction defect suits via land use restrictions recorded by the developer.
Even though the homeowners association did not yet exist when the developer filed its declaration of restrictions, and therefore could not have consented to arbitration in the traditional sense, the individual homeowners who make up the association waived the right to a jury trial by consenting to the restrictions when buying their homes, the court ruled.
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