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.

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