Texas Panel:  Subsequent Homebuyers Can Be Compelled To Arbitrate

(June 23, 2023, 1:28 PM EDT) -- AUSTIN, Texas — Two subsequent homeowners who purchased a home from the original owners who signed an arbitration agreement in the purchase agreement with the homebuilder can be compelled to arbitrate under the theory of direct benefits estoppel because their breach of implied warranty claims against the builder requires reference to the original contract, a Texas appellate court panel held June 23 in reversing a trial court’s order denying the homebuilder’s motion to compel arbitration....