In Stucco Dispute, Texas Panel Says Homeowners Can’t Be Compelled To Arbitrate

Mealey's ( February 17, 2023, 9:46 AM EST) -- AUSTIN, Texas — Subsequent homeowners who did not sign an arbitration agreement cannot be compelled to arbitrate by the homebuilder because their defective stucco claims do not arise from the contract signed between the original homeowners and the builder, and direct benefits estoppel does not apply, a Texas panel held in affirming a trial court’s denial of the homebuilder’s motion to compel arbitration....