HOUSTON - The First Court of Appeals found today that a couple must arbitrate their claims with a homebuilder because of an arbitration agreement signed by the home’s previous owners.
James and Merry Mason filed suit against Taylor Morrison of Texas and Taylor Woodrow Communities – League City, alleging construction defects in their home, specifically a mold infestation.
According to the First Court’s opinion, the Masons purchased the home from the original homeowners, who had signed a purchase agreement for the home with Taylor Morrison several years earlier. The purchase agreement contained an arbitration clause.
Court records show the defendants moved to compel arbitration, which the trial court denied, leading to the appeal.
On appeal, Taylor Morrison asserts that the Masons, although non-signatories to the purchase agreement, are bound to arbitrate their claims pursuant to the arbitration clause under the doctrine of direct-benefits estoppel.
“Based on the supreme court’s holdings in Whiteley and Kohlmeyer, we agree that the doctrine of direct-benefits estoppel requires the Masons to arbitrate their claims pursuant to the arbitration clause in the original purchase agreement,” the opinion states.
“Accordingly, we reverse the trial court’s order denying Taylor Morrison’s motion to compel arbitration and the accompanying plea in abatement and remand the case to the trial court for further proceedings.”
Appeals case No. 01-22-00829-CV