AUSTIN - The Texas Supreme Court recently issued opinions in a pair of construction defect cases, finding that the minor children of parents who sued a homebuilder may be compelled to arbitrate their claims along with their parents.
The high court issued the per curiam opinions on Friday. Both cases stem from lawsuits brought against Taylor Morrison of Texas and Taylor Woodrow Communities-League City.
In both lawsuits, the plaintiffs alleged that their homes developed mold issues.
The Supreme Court held that the minor children who joined their parents in bringing the construction defect litigation may be compelled to arbitrate along with their parents on the basis of direct-benefits estoppel.
“Because the … children lived with their parents in the home at issue and sued for factually intertwined construction-defect claims, that basis for direct-benefits estoppel serves as an additional reason to compel arbitration here,” the high court’s opinion states.
Justices granted the companies’ petitions for review and reversed the judgment of the appellate courts, remanding the cases back to the trial courts.
Case Nos. 22-0331 and 21-0296