Wood v. D.R. Horton, Inc.

Summary

The court grants D.R. Horton’s motion to compel arbitration and stay the litigation arising from Gail Wood’s alleged personal injuries at a newly constructed home. It concludes that the Homeowner Agreement’s broad arbitration provision covers the personal-injury claims, applies under the Federal Arbitration Act, is not unconscionable, and was not extinguished by merger into the deed. The court also grants the motion as unopposed with respect to claims subject to the subcontractor agreement.

Holdings

1. The arbitration provision covering any and all disputes regarding the Homeowner Agreement and/or the property broadly encompasses the plaintiffs' personal-injury claims arising from alleged construction defects.
2. The construction and sale of the new home involved interstate commerce, so the FAA governs the arbitration agreement.
3. The Homeowner Agreement's arbitration provision is not unconscionable and is enforceable.
4. The execution of the deed did not merge the Homeowner Agreement's arbitration provision out of existence.
5. The claims between D.R. Horton and Knight Construction and Landscaping, LLC and Theron H. Knight, III, must be arbitrated under the Subcontractor Independent Contractor Agreement.

Questions Presented

1. Whether the Homeowner Agreement's arbitration provision covers the plaintiffs' personal-injury claims arising from alleged construction defects.
2. Whether the transaction involved interstate commerce within the meaning of the Federal Arbitration Act.
3. Whether the arbitration provision is unenforceable as unconscionable under South Carolina law.
4. Whether execution of the deed merged the Homeowner Agreement's arbitration provision out of existence.
5. Whether the claims between D.R. Horton and the subcontractor must be arbitrated under the Subcontractor Independent Contractor Agreement.

Disposition

other