How Mattamy Homes Uses This Clause
Mattamy Homes purchase agreements have been documented to include mandatory binding arbitration provisions. Mattamy purchase agreements contain binding arbitration clauses requiring all disputes to be resolved through private arbitration rather than in court. In Evans v. Mattamy Homes Limited (2019 ONSC 3883), the Ontario Superior Court upheld the enforceability of this clause despite buyers arguing it was unconscionable and embedded in a non-negotiable standard form contract. Arbitration eliminates the right to a jury trial and typically limits discovery. This clause has been the subject of litigation, including Evans v. Mattamy Homes Limited.
This provision typically appears within the purchase agreement alongside other terms that may limit buyer remedies.
Mattamy Homes's scale means contract templates are largely standardized across its operations. A clause identified in one market's contract is likely present in other markets' contracts, though local addenda may modify the terms.
Builder-Specific Details
Combined with Class Action Waiver
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Standard Form Contract
This clause appears in Mattamy Homes's standard purchase agreement, which is generally presented on a take-it-or-leave-it basis. Buyers typically have limited ability to negotiate individual terms, though making the request in writing is still advisable.
Legal History
The following cases involve Mattamy Homes's use of this clause type.
Evans v. Mattamy Homes Limited
Five plaintiffs who signed pre-construction purchase agreements in 2017 for homes in Oakville, Ontario challenged the enforceability of the mandatory arbitration clause. The Court upheld the arbitration agreement, finding that the general atmosphere of the sales environment\u2014which required buyers to pick a lot and provide a deposit cheque on the spot\u2014did not amount to undue influence. Individual claims ranged from $1.5M to $2.2M (source: Ontario Superior Court; BLG; McCarthy T\u00e9trault).
State-by-State Enforceability
Enforceability of this clause varies by state. The following reflects Mattamy Homes's operating states.
| State | Status | Note |
|---|---|---|
| Florida | Likely Enforceable | Mandatory arbitration clauses in Florida new construction contracts are likely enforceable. Florida... |
| North Carolina | Likely Enforceable | Mandatory arbitration clauses in North Carolina new construction contracts are likely enforceable.... |
| Arizona | Likely Enforceable | Mandatory arbitration clauses in Arizona new construction contracts are likely enforceable. Arizona... |
| Texas | Likely Enforceable | Mandatory arbitration clauses in Texas new construction contracts are likely enforceable. Texas has... |
Related Clauses in Mattamy Homes Contracts
This clause often works in combination with other provisions in Mattamy Homes's purchase agreements.
The class action waiver and arbitration clause work together to ensure all disputes are handled individually in private proceedings.
Challenges to the habitability waiver must be pursued in arbitration rather than court.
Disputes over deposit forfeiture must be resolved through arbitration, where the cost of pursuing a claim may exceed the deposit amount.
Even if an arbitrator finds in the buyer's favor, the liability cap may limit the award.
What Buyers Can Do
- Understand the arbitration process before signing. Review which arbitration provider is specified, who selects the arbitrator, and whether you have any right to appeal. These details significantly affect the fairness of the process.
- Research the arbitration provider's track record. The specified arbitration provider may have a history with builder disputes. Understanding the provider's procedures and typical outcomes can help you prepare.
- Review the Evans case. The Evans v. Mattamy Homes Limited ruling may be relevant to your situation. If you are buying a Mattamy Homes home in a state with similar legal protections, this precedent could affect the enforceability of this clause.
- Have the full contract scanned before signing. This clause is often one of several interconnected provisions in Mattamy Homes contracts that collectively limit buyer remedies. A contract scan can identify all of them.