Washington Supreme Court upholds arbitration provision in construction defect case

Ahlers & Cressman’s Bruce Cohen reports that the arbitration provision included in the Purchase and Sale Agreement (PSA) between homebuilder Quadrant Corporation and homeowners is enforceable.

In Townsend v. Quadrant Corp., several Quadrant homeowners and their children filed suit against the developer alleging “outrage, fraud, unfair business practices, misrepresentation and breach of warranty.” The homeowners alleged that Quadrant knowingly engaged in shoddy workmanship resulting in construction defects that caused personal injuries relating to “mold, pests and poisonous gasses.” Quadrant filed a motion to transfer the claims to arbitration relying upon the arbitration clause in the PSA.