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The Florida District Court of Appeal held that an arbitration clause in a homebuilder’s warranty agreement did not cover all claims involving alleged failures in construction.
In JPG Enterprises, Inc. v. Evans, No. 4D06-2250, 2006 WL 3371894 (Fla. Dist. Ct. App. Nov. 22, 2006), Evans sued JPG Enterprises, Inc. (JPG), a homebuilder, for breach of contract and violation of a consumer protection statute. JPG moved to compel arbitration pursuant to an arbitration clause in its warranty agreement. The trial court denied the motion.
In affirming the trial court’s ruling, the Court relied on Grosseibl v. J. Chris Howard Builders, Inc., 739 So.2d 1255 (Fla. Dist. Ct. App. 1999), in which the court held that an arbitration clause in a warranty agreement was not broad enough in scope to cover all of the homebuyer’s claims against the builder. The Court found Grossebil applicable in this case because the warranty agreement was separate from the sales contract for purchase and sale, and the arbitration clause only covered disputes arising out of or related to the warranty.
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