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New Home Warranty: Arbitration Clause Enforced

New Jersey law requires that every new home come with a warranty to provide a remedy for a homeowner for construction defects. In a ruling on Monday, May 17, the Appellate Division ruled an arbitration clause in a new-home warranty policy was enforceable, so that homeowners of a million dollar home could not sue the warranty company for damages which left their home uninhabitable. The court found that arbitration was the sole remedy afforded the homeowner.

For further information, please contact John Petriello, Esq. at john@lep-lawyers.com

Categories: Construction Law

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